The Supreme Court has ordered a halt to the compulsory merger of Malappuram District Cooperative Bank with Kerala State Cooperative Bank. Chief Justice D.Y. Chandrachud’s Bench will review the legality of the amendments allowing the forced merger.
This decision responds to a petition by MLA U.A. Latheef, the former president of Malappuram District Cooperative Bank, challenging a Kerala High Court ruling that upheld these amendments.
The petition argues that the merger is undemocratic, unconstitutional, and exceeds legislative powers. Additionally, it raises concerns about conflicts with the Deposit Insurance and Credit Guarantee Corporation Act of 1961.