The Lahore High Court (LHC) admitted a petition for regular hearing against State Bank of Pakistan (SBP) for asking financial institutions to provide details of all those account holders who are getting profit of over Rs ten thousand.
The court adjourned the proceedings till January 27 for final arguments.
Earlier, the law officer contended before the court that the SBP has taken this action in the public interest.
On a court query he cited section 41 of Banking Ordinance and said that under this provision SBP could take any action in the public interest. The law officer, however, failed to explain the public interest in taking this action by the bank.
The petitioner, M D Tahir advocate, has approached the court against SBP for this action.
He said that such action of the respondent bank would hit the economy of the country, as the people of Pakistan would lose their confidence in the financial institutions.
He, therefore, prayed to the court to direct the respondent bank to withdraw the circular in question and also direct the respondent bank to act in accordance with the law.
The court, after hearing both the sides at length, admitted the petition for regular hearing and rose for the day.