Kerala High Court permits Islamic Banking Institutions in Kerala
Posted Date: 04-Feb-2011
: 10 (
Kerla High Court on Feb 3rd gave its assent to setting up Islamic Sharia-based banking institutions in Kerala with the participation of Kerala State Industrial Development Corporation (KSIDC). Islamic Banking institutions work on the principles of Sharia, and charge or pay any interest on the funds. Al-Baraka is the islamic banking institution, promoted by 14 investors. P. Mohammad Ali is the Chairman of the institution.
Kerala to have Islamic Banking Institutions
Kerla High Court on Feb 3rd gave its assent to setting up Islamic Sharia-based banking institutions in Kerala with the participation of Kerala State Industrial Development Corporation (KSIDC). Such institutions work free of interest.
Chief Justice Chalameshwar gave green signal to Al Baraka Company, dismissing petitions filed by politician Subramania Swamy and others. Swamy's argument was that public money can't be used for promoting an institution based on Sharia principle in a secular country.
Al Baraka has 14 promotors, and a 17-member Board. Prominent gulf-based business man P. Mohammad Ali is the Chairman and C.K. Menon is the vice chairman. KSIDC will have 11% equity in the institution. The firm will work on the lines of Islamic banking principles, and won't charge or pay interest. Funds will be invested in infrastructure projects, and investors will be paid returns in the form of dividends, sharing the profits generated.
As per current laws in the Indian banking industry, Islamic banking is not permitted, as banking principles are based on interest payment. Last year, Prime Minister Manmohan Singh had asked the RBI to look into the matter. A separate legislation might be required to allow Islamic banking in India.
Muslim community, which comes about 15% of India's population, has been demanding Islamic banking in the country for a long time.
Read related articles:
Islamic Banking in Kerala
Did you like this resource? Share it with your friends and show your love!
Responses to "Kerala High Court permits Islamic Banking Institutions in Kerala"
No responses found. Be the first to respond...
Notify me by email when others post comments to this article.
Do not include your name, "with regards" etc in the comment. Write detailed comment, relevant to the topic.
No HTML formatting and links to other web sites are allowed.
This is a strictly moderated site. Absolutely no spam allowed.
to fill automatically.
(Will not be published, but
to validate comment)
Type the numbers and letters shown on the left.
Cijo George Thomas
Awards & Gifts
Subscribe to Email
Get Jobs by Email
Forum posts by Email
Articles by Email
Last 7 Days
Binil James ...
Copyright © SpiderWorks Technologies Pvt Ltd., Kochi, India. All Rights Reserved.