25 November, 2020

Green With Envy?

A New York citizen files a suit against 'discriminatory' RIBs

Green With Envy?
outlookindia.com
-0001-11-30T00:00:00+05:53

ONE measure of success in the US is when you get sued, even if for trivial reasons. Going by that dictum, New Delhi's move to raise money from the Indian diaspora around the world is a success.

In what came as a surprise to the banking industry here, a New York financial planner has sued the State Bank of India and Bank of India, alleging they illegally restricted US sales of the Resurgent India Bonds (RIBs) exclusively to people of Indian descent. The suit filed by Leonard Schoenfeld, of North-port in Long Island, NY, in the Supreme Court of New York in Manhattan on August 21, added Citibank as a defendant on August 24 and seeks class-action status.

Schoenfeld's attorney, D. Daniel Engstrand of the law firm Doniger & Engstrand, said: "These banks are slapping Americans in the face by offering these bonds only to Indians. It boggles my mind; any company, including banks, doing business in the state (of New York) is not allowed to refuse to do business or refuse to sell or trade on the basis of that person's nationality...

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