1st Jan. 2015
Shri Arun
Jaitelyji,
Honourable
Finance Minister,
Govt. Of India,
Ministry Of Finance,
North Block, New
Delhi—110001.
Respected Sir,
Revision of Pension in RBI
At the out set we greet you on behalf
of retirees of Reserve Bank of India (RBI), including those who are in their
twilight years and who had contributed immensely in building the great edifice
of RBI. We also pray to the Almighty to give you excellent health and spirit to
enable you to serve our nation.
Sir,
in the matter of revision of pension in RBI we enclose the detailed note,
prepared by us, along with its Executive Summery for your kind perusal please.
MoF’s Interference in
RBI Pension Updation Unjustified
We
are now approaching you with the prayer to kindly look into our sufferings for
the last twelve years; on account of unfortunate and indifferent stand taken by
officials of Ministry of Finance (MoF) during the time of UPA government. They
have denied our legitimate demand of revision / updation of pension for the
wage settlements of 1st Nov. 2002 onwards and also forced RBI
management to issue withdrawal order for earlier revision granted by the then
honourable Governor
Dr.
Bimal Jalan to pre 1st Nov. 1997
retirees for wage revisions of 1992 and 1997. In this regard we state
that the revision in basic pension granted to those who retired between
1-1-1986 to 31-10-1987, on the basis of 1-11-1987 wage revision, was the first
revision granted by RBI and it is not under objection of MoF. Thus revision of
pension has been granted twice (i.e. at the time introduction of the pension
scheme as per wage settlement of 1987and subsequently in 2003 as per wage
settlements of 1992 and 1997) by RBI so far. As such for wage settlements of
2002 and 2007 also revision of pension should have taken place as a natural
corollary. But because of MoF interference and pressure, RBI has succumbed to
them and has not done so.
MoF’s Interference in
RBI Pension Updation
Without Legislative
Backing
We
may add here that MoF forced RBI to withdraw updation already granted by the
then Governor Dr. Bimal Jalan, as per wage settlement effective from 1-11-1997.
The said withdrawal, however, was challenged in the Bombay High Court and the
stay order was granted on the RBI’s withdrawal circular almost 5 years ago. It
may please be noted here that when the honourable Judge asked counsel of MoF
(i.e respondent No. 2), under what legislative provision they have advised RBI
to withdraw the revision already granted, they could not quote any legislative
provision to that effect. This shows that MoF’s interference was without any
legislative backing in the matter of revision of pension in RBI.
In
view of what is stated in preceding paras, the recent decision of MoF to keep
in abeyance the issue of revision of pension in RBI, till PSU Banks’ settlement
takes place, sounds uncalled-for causing grave injustice to us.
MoF’s Interference in
RBI Pension Updation
violative of Article 14 of Constitution of India
Further,
we may bring to your kind notice that discrimination meted out to us, by not granting revision of pension for
2002 and 2007 wage settlements in RBI covering period of 12 years, is void
and violative of Article 14 of Constitution of India and there are umpteen of
SC judgments right from Nakara case in 1983 to recent case of One Rank One
Pension (OROP) of Army which should have been guiding factor for MoF.
(Please see para 10 of the enclosed note). This anti-constitution approach of
MoF has already brought disrepute to the GOI and also made GOI exchequer to
spend huge funds, may be running into some
crores for no reasons. Apart from this, thousands of senior citizens are
subject to tortures with this high handedness of MoF. You are in our high
esteem as you are an eminent lawyer of Supreme Court and now in-charge of
Finance Ministry. We senior citizens
of India,
therefore, crave that you may please stop this sordid happening and give
justice to us at the earliest. Your good gesture to us would also uphold the
Article 14 of the constitution of India. We are of the consider
opinion that the Constitution of India should have been the guiding BHAGVAT
GEETA for MoF officials who are going by their pride and prejudices in a high
handed way.
Framers of RBI
Pension Regulations 1990
had a clear vision
for revision of pension
You
may please find in the note enclosed that all facts mentioned therein
undoubtedly indicate that the framers
of RBI Pension Regulations 1990 had a clear vision for revision of pension with
every pay revision in RBI and accordingly made provisions vide Regulations
2(9)(f) and 5 ibid empowering Central Board of Directors of RBI. Also
the GOI had duly approved
the said Regulations in terms
of Section 58 of the RBI Act, 1934 before introduction of the pension
scheme in RBI. (Please see items 1, 2 & 3 in the enclosed note) As such RBI
Pension Regulations 1990 are staute in nature. In this regards Legal Dept
of GOI initiated a noting dated 5th
Nov.2004 wherein Regulations 5 and 2(9)(f) of RBI
Pension Regulations 1990 were totally ignored while doing vetting in
the matter which is contrary to the universally accepted cannons of interpretation of Statutory Instrument. (Please see item 7 in
the enclosed note). Virtually, on
the basis of this noting the entire case was taken on wrong track and the then
Finance Minister was also misled in the matter. You are, therefore, earnestly
appealed to review the case and direct the RBI to exercise power vested with
them, keeping in the Article 14 of the Constitution of India and various SC
judgments in the matter.
The new
proposal of MoF in contravention of
the
Article 14 of the Constitution of India.
We also bring to your kind notice that on 11th October
2011 RBI had written a DO letter forwarding therewith Memorandum of the
Committee to Central Board of RBI wherein various amendments to RBI
Pension Regulations 1990 were referred for GOI
approval. On this, there was spate of irrelevant queries by MoF,
obviously to delay the matter of revision of pension in RBI. Perhaps you may
like to call for papers from MoF and to know how decisions are deliberately
delayed which reflect on GOI. Only on intervention by our present Governor Shri
Raghuram Rajan some truncated proposal came from MoF. The said proposal
contained, amongst others, that
i.
no retrospective effect from 1-11-2002 for updation and only
w.e.f. 1-11-2012 retrospective effect would be granted:
ii.
no allowances other than the grade pay would be considered for
updation and
iii.
One more pension option
would be given simultaneously with acceptance of the remaining items of the MoF
proposal.
We may bring it to your kind notice that Items i. and ii. of
the proposal are in contravention of the Article 14 of the Constitution of India.
Effect in updation of pension is to be given from the earliest day of revision
of wages and a step otherwise amounts to discrimination. We may also add here
that recent Supreme Court Judgment in the matter of Computation of Non Practicing
Allowance for pension, the Supreme Court has rejected GOI’s review petition and
directed to compute it w.e.f. 1-1-1996. We are, therefore, under bona fide
impressions that the allowances which have been specified for computation of
pension purposes as per various settlements in RBI under Industrial Dispute Act
cannot be ignored at all and have to be considered for pension purposes.
As regards item iii. , it is surprising that why at all MoF should
delay it. Ever since the RBI’s above referred DO of 11th Octob.2011
a pretty long time of 3 years has elapsed. Pension is a measure of social
security for senior citizens and it has essence of time. What made MoF to
hold on it for more than three years is beyond our comprehension. This delay
also reflects on functioning of MoF, especially when our present Prime Minister
publicly assures prompt action in the matters of citizens of India.
GOI has
not to spend Single farthing on RBI pension
Incidentally, we may state here that the RBI Pension Fund built up
over the period by higher sacrifices by RBI community has enough balance to
meet any eventuality in future. The Govt. exchequer has not to spend even a
single farthing towards pensioners of RBI for all the time to come. This may kindly be kept in a view as GOI does
not want any drain on public money.
MoF has
scant Respect for Office of
The
Governor and Central Board of RBI
Also, the Governor and Central Board of RBI are being reduced to
such a level that they do not have say in such a small matter. It is nothing
but the tragedy from our nation’s point
of view. Kindly look into this aspect from propriety point of view and direct
officials of MoF not to reduce the office of the Governor of Central Bank of the
nation and give him due place as he is ranked equivalent to the Cabinet Secretary of India.
Illustrious
Governors of RBI-
Former
Secretaries of MoF
It may be stated that illustrious former Governors of RBI
Sarvashri R.N. Malhotra and Dr. Bimal Jalan, who were former Secretaries from
MoF, had visions to introduce pension in RBI and to update it respectively,
much against prejudiced wishes of officials of MoF. How come officials of MoF
could belittle their great actions when it has aspects of social security? Sir,
we are simply aghast with high handed way officials of MoF are shaping the
things with mind set of sadists. May we request you to stop them from such
sadist approach and not only to deliver due justice to us but also to improve
image of the GOI.
Our
Prayer
Sir, you being eminent lawyer of Supreme Court, we humbly request
you to kindly spare your time and streamline above referred issues of RBI
pensioners by directing the Governor of RBI and its Board to exercise their
authority keeping in view
a)
RBI
Pension Regulations 1990
b)
The
Article 14 of the Constitution of India
c)
The
Supreme Court judgments in cases like Nakar, RBI, OROP and recent Judgment in
the matter of NPA to medicos of the GOI.
Looking
forward to you to give us justice at the earliest as you are in the chair of
the judgment. We sincerely wish that in
the annals of history of India
your name would be written in golden letters for upholding Constitution of
India, especially when the Article 14 of the Constitution was trampled during
the regime of UPA Govt.
We
shall be glad to have your reply at the earliest as our pensioners eagerly
await justice from you.
Yours
faith fully,
(L
R Parab)
General
Secretary
Encls.- 10
Executive
summary of note on updation/revision of
pension in RBI
1.
RBI
Pension Regulations 1990 has provisions empowering Central Board of Directors
of RBI to do updation of pension. As the said regulations are under statue, no
need of any interference by Ministry of Finance.
2.
At formative stage of pension scheme in RBI itself,
Updation of pension has specific mention in the Memorandum dt.7th
July 1990, submitted to the Central Board of Directors of RBI.
3.
GOI
had approved provision of regulations for updation of pension while approving
RBI Pension Regulations 1990.
4. RBI’s
various affidavits in Bambay High Court confirms the approval of updation by
the Central Board of the Bank.
5.
Nation’s Legislative Assembly, 0n 18th February 1947
pronounced RBI’s Autonomy. Also RBI Act has entrusted administrative work to
the Bank’s Board of Directors. On this background interference in
administrative matter of RBI by MoF is uncalled for.
6.
Under the pressure of MoF, RBI made fresh proposal in October 2011
for amendments in RBI
Pension Regulations 1990.Since then a period of three years has elapsed but MoF has been dilly-dallying the matter on one pretext
or the other.
7.
Legal Dept. of GOI, in their noting dated 5th Nov.2004
did not do vetting of Regulations 5
and 2(9)(f) of RBI Pension Regulations 1990 and suppressed the truth
& misled the then Finance Minister by putting up false note.
8. RBI Pension Regulations 1990 are akin
to The CCS(Pension) Rules, 1972. When
GOI grants Updation of pension to GOI employees
without amending their Pension Regulations, what made MoF to object updation of
pension done so in RBI.
9.
RBI
promised updation of pension to its employees, vide its circular in March 1992, at the time
of introduction of the pension Scheme in the Bank. This attracts the doctrine of “Promissory
Estoppels.”
1o. Supreme Court’s Judgments in
favour of updation of pension under Fundamental Rights- Article 14. Kindly
refer to Supreme Court’s recent verdict in favour of One Rank One Pension to
Army personnel, based on the said Article 14 of the Constitution of India.
11. RBI Pensioners suffer very badly in
inflationary economy
of India.
For the last 14 years RBI pension has not been
updated / revised as the MoF has been creating hurdles
in the way.
12.
Govt. Exchequer has not to spend even single farthing
as RBI has developed its own pension fund
as per legal
provisions.
13.GOI has no legislative
backing to oppose updation of
pensionin in RBI.
Note
on Updation/Revision of Pension in RBI
Brief History Prior
to Introduction of Pension Scheme
The
then Governor, late Dr. I G Patel who had genuinely desired that the Bank
should have a pension scheme for employees of its own had setup the Study Group
in October 1979, under the Chairmanship of Shri W.S. Tambe(the then Executive
Director) comprising representatives of 4 recognised Associations and
Federation in the Bank. The Study Group submitted their report, for pension as
a third retiral benefit, to the Bank
on 27th may 1981 and it was sent to Government of India on 8th
June 1981. However, the GOI did not approve the Pension Scheme recommended by
the above Study Group as a third retirement benefit. Instead, GOI stated that the
Reserve Bank Pension Scheme could not be different from that of GOI. On this two Officers Associations gave
in writing that GOI Pension Scheme then improved by III Central Pay Commission
was acceptable to them. While this was in process, Dr. Patel had relinquished
his office. It was initiative of late Shri R. N. Malhotra alone that
introduced Central Govt. Pension Scheme
to the employees of the Bank in lieu of Contributory Provident Fund, which was
historically @ 10% in Reserve Bank as against 8.33 % in Government and Banking Industry
and elsewhere. This is how Reserve Bank Pension Scheme has been modeled on the
lines of liberalised Central Govt. Pension Scheme and the same was modified as
per the Recommendations of the IV Central Pay Commission. All the essential features of the Central Govt. Pension Scheme have
been incorporated in RBI Pension Regulations, which have been approved by the
GOI in terms of Section 58 of the RBI Act, 1934.
RBI has committed in
1992 to give pension updation
The
Bank is also committed to periodic updation of pension with reference to every revision of pay scales of the serving
employees and officers, vide its circular letter PPD. No. G.66/2180/RII. CP 171
D- 91/92 dated March 13, 1992. The then Governor, late Shri R. N. Malhotra
also gave a solemn assurance to representatives of recognized organisations
that the improvements that would be brought about by future Central Pay
Commissions in the Central Govt. Pension Scheme would automatically be made
applicable to RBI employees and this Assurance has been embodied in Reg. 5 of
R.B.I. Pension Scheme. Therefore, the Govt stand to oppose updation of
pension to RBI retirees is contrary to the facts of the case and tantamount to
breach of trust and betrayal.
Regulations in favour
of updation of pension in RBI Pension Regulations
1.
The
basic premise, on which both the Govt. and RBI agreed at the time of approval
of the RBI Pension regulations 1990, was that it was modeled, in all essentials, on the pattern of Central Govt. Pension
Regulations. In areas where a different treatment was warranted that was
specifically spelt out in the RBI Pension regulations itself. For example
RBI Pension regulation 2 (9) defines-
Pay includes
a)substantive pay,
b)
officiating
pay,
c)
special
pay,
d)
personal
pay,
e)
special
personal pay,
f)
any
other emoluments which may be classified
pay by the Central Board of the Bank.
Regulation 2 (9) (f) above, amongst
others, therefore, very clearly mandates
the RBI Central Board to decide pay for pension purposes. This
discretionary powers of the Board would not have been lost sight of while
approving Regulation 5, which also speaks about the Bank’s power to “make
exceptions and modifications which it could determine from time to time”.
[Reg.
5 – In the matter of the application of these
Regulations
regards may be had to the corresponding
provisions of Civil
Service Regulations or the
Liberalised Pension Rules or
the Civil Pensions (commutation) Rules or
the Family Pension
Scheme for Central Government employees, as
the case may
be, of
the Government of India
in so far as they can be
adapted to the service in the Bank
but subject to such
exceptions and modifications as the Bank
may, from time
to time determine.]
In
effect an estoppels of sorts operates on the Government,
and
the Regulations, as finally approved, by The Government
under
statute stands insulated from any interference.
Further, a relook at the Regulations,
necessitated in other
areas, cannot be misused to unsettle
settled things touching
Fundamentals.
The import of Regulations 2(9)(F) and
5 need to be understood and executed by RBI and Ministry of Finance as they are
concerned in the matter.
Updation
of pension has specific mention in the Memorandum dt.7th July 1990
submitted to the Central Board of Directors of RBI *
2. It would be seen from initial noting
at formative stage at RBI end that after considering the then Deputy Governor’s Memorandum dated 7th July 1990 the Committee of the Central
Board, in their meeting on 11th July 1990 passed the resolution for
introduction of a Pension Scheme and Pension Regulations. In Deputy Governor’s
said noting, amongst others, at para 6.4 on Revision of Pension, it has been
clearly stated that
* “
In Government, the pension amount gets updated
after every pay revision. We may,
therefore, have to update pension after every future pay revision in the Bank.”
To
facilitate revision of pension in the Bank, therefore, above mentioned Regulations
5 and 2(9)(f) were incorporated in the Pension Regulations of the Bank. The said approved draft regulations were sent to the
Government for their approval vide Bank’s D.O letter PPD No. 54
/R.II.CP.171 (B)-90/91 dated 17th July 1990.
GOI had approved
provision of regulations for updation of pension while approving RBI Pension
Regulations
3.The
Govt. vide its letter F. No. 11/1/90 – IR dated 20th Sept 1990
conveyed that they have no objection to introduce pension scheme in RBI and
accorded their approval to the draft RBI Pension Regulations 1990 with some
minor modifications.
But in no way they objected to above
stated Regulations 5 and 2(9)(f) in the said draft. In fact, keeping in
view Regulations 5 and 2(9)(f), updation
was first time granted to those employees who retired between 1-1-1986 to
31-10-1987, at the time of introduction of the pension scheme in the
Bank. Therefore, brushing aside of
Regulations 5 and 2(9)(f) as one irrelevant to the issue of updation is not
only in conflict with the intentions of the framers of the Pension Regulations
but also opposed to the universally accepted canons of statutory
interpretation that no provision in a statutory instrument should be
allowed to remain otiose since every clause would have application at some
point of time. Needless to state that these RBI pension regulations are statutory as the GOI approved them in
terms of Section 58 of the RBI Act, 1934.
We may also add , as follows,
para 3 of DO letter dated 17th July 1990 addressed to
Ministry of Finance by then DG Shri A. Ghosh, wherein he pointedly said about
inclusion of various Govt. rules incorporated in the Bank’s Draft Pension
Regulations.
“Various Government rules pertaining to qualifying service, minimum /
maximum qualifying period, re-employment after retirement in public / private
sector, treatment of leave for qualifying service, rate of pension, weightage
of overage, commutation of pension, family pension, etc. have been incorporated
in the Bank’s Draft Pension Regulations and a specific provision has also
been made therein to go by Government’s Pension Rules in similar circumstances.”
Therefore,
provision of Regulation 5 and 2(9)(f)in
RBI Pension Regulations 1990 is omnibus and also has
been approved by the Government in
terms of Section 58 of the RBI Act, 1934.
without any rider.
As such the scope and intent of the regulation 5 were fully known
to the Government.
RBI’s various affidavits in Bambay High Court
confirms the approval of updation by the Central Board of the Bank
4. On perusal of the Bank’s
affidavits dated 17th Nov. 2008, 1st Jan. 2009 and 11th
Sept 2012 to Bombay High Court in the matter of updation granted by the Bank to
pre 1-11-1997 retirees, vide Administrative circular No.2 dated 1st
Sept. 2003 it is crystal clear that
Central Board of the Bank is very much in favour of giving updation of pension
in terms of Reg. No. 5 of the Bank’s pension regulation. In para 10 of
affidavit dated 17th Nov. 2008 the Board’s Resolution states that
“ that the factual position and the
background with regard to the decision taken by the Board on updation
of pension payable to pre-Nov.1997 retirees, being legal and strictly in conformity with the RBI Pension Regulations,
1990 as confirmed by the Legal Dept. of the Bank as also reconfirmed by two
eminent legal luminaries, Shri Dipankar P. Gupta and Shri Harish Salve, be
explained to the Govt. of India.”
The Bank in its affidavit
dated 17th Jan.2009 has eloquently stated how the Central Govt updates its employees pension
without amending its any pension regulation, as a administrative matter and
in the similar way the Bank updated pension of it’s retirees by way of issuing
administrative circular upon seeking sanction / approval of its Central Board.
It is worth noting that at para 8 states that
“ although the Respondent
No.1 (i.e. RBI) had revised the pay notionally from 1st Jan. 1997,
Respondent No. 1 had decided to pay the revised pension based on such pay only
from 1st Nov. 2002 which was
the date of expiry of the tenure of earlier settlement / wage revision in the
Respondent No. 1. I say that fixing of such cutoff date is not arbitrary but is
legal and permissible. I say that the Hon’ble Supreme Court has stressed
upon the uniform treatment of pensioners, irrespective of the date of
retirement. I say that the intention and objective of updation of pension by
revision of pay on notional basis was to have a uniform DR formula for all
pensioners and not to have any different treatment meted out to some pensioners.
I say that the Hon’ble Apex Court
had in the aforementioned case recognized updation of pension being carried out
as requirement of adequate protection in old age”.
The Bank’s affidavit dated 11th Sept. 2012 states in
para 4
“keeping in view the objections
raised by Respondent No. 2 (i.e. Govt.) that updation cannot be granted without
amending the RBI Pension Regulation 1990, Respondent No.1 has forwarded a
proposal with the approval of its Central Board in October 2011 itself to
respondent No. 2 seeking their approval to amend the pension from time to time
as may be decided by the Central Board of Respondent No.1. The proposal is
presently under consideration of Respondent No. 2”.
This shows the Bank’s
Board is for updation of pension from time to time. The Board made all efforts
to resist MoF’s bias moves. But finally succumbed to the pressure of MoF for
reasons best known to all of us.
Nation’s
Legislative Assembly, 0n 18th February 1947 pronounced RBI’s
Autonomy
5.We may also state that GOI must respect the autonomy of RBI as the
then Finance Minister himself, on the
floor of the Legislative Assembly, 0n 18th February 1947 had
asserted,
‘we must see that whatever constitution is
framed for the Bank. Although it will be public ownership, it will not play
the part of a subservient agent of the Govt, whatever it may be at that
time.’
On this background interference of the MoF
even in Administrative matter like updation of pension, when the Bank functions
strictly according to powers entrusted to it, is beyond our comprehension.
RBI made
fresh proposal in October 2011 but still it is pending
6.We may also bring to your kind notice that a pretty long period of
three years has elapsed since the
proposal made by the Bank in Oct.2011.RBI’s proposal is not at all as per the
law of the land. However, Ministry of Finance has delayed the Bank’s proposal
by tagging unnecessary issues which have no correlation with the pension. This
being the issue of very senior citizens
of India, it is to be expedited at
the earliest keeping in view recent Supreme Court Judgment in the matter of One
Rank One Pension (OROP).
GOI Legal Dept. Noting
suppressed the truth & put up false noting to Finance Minister
7. We have on our records
along with other relevant papers, a copy of the note dated 14th July
2005 put up to the Hon’ble Minister by the Finance Department, obtained by us
under Right to Information Act 2005. It is observed there from that the
argument regarding violation of RBI Pension Regulations.1990, is based on the note
dated 5th Nov. 2004 recorded by Shri R.K. Srivastava, Asst. Legal
Advisor, Ministry of Law & Justice, Department of Legal Affairs, Government
of India.
As regards the violation of the Regulations, the note refers only to Regulation
2(2) and there is absolutely no mention / interpretation of Regulations 5
and 2(9)(f) which give unbridled
powers to Reserve Bank to improve the pension Scheme without the interference
of the Government or any other Regulation/Statutory provision. Regulation 5
also sums up the entire pension scheme of the Government and its applicability
to Reserve Bank pensioners in its entirety. The Hon’ble Finance Minister (here
Shri Chidambaran) should have been briefed properly before his orders were obtained.
We state at the cost of repetition
that this bias noting of Govt. Legal Dept. is opposed to the universally
accepted canons of statutory interpretation that no provision in a statutory
instrument should be allowed to remain otiose since every clause would have
application at some point of time. Needless to state again that these RBI
pension regulations are statutory as approved
by the GOI in terms of Section 58 of the RBI Act, 1934.
which have been approved
by the GOI in terms of Section 58 of the RBI Act, 1934.
Updation of pension granted to GOI employees
without amending their Pension Regulation.
8. We may also bring to your kind notice
that the MoF has not amended their own pension regulations but gave
updation of pension to lakhs of its employees
right from 1-1-1986 to 1-1-2006 covering three wage revisions.
Government of India
vide their letter No 38/7/11-P&P. W(A) dated Feb. 2011 has informed under
RIA that
“The CCS(Pension) Rules, 1972 provide for
determination of pension/family pension at the time of retirement/death. These
Rules do not contain any provision for future revision of such pension. The
pension of existing pensioners was revised on the basis of the decisions taken
by the Government on recommendations of the 5th and 6th
Central Pay Commission. These decisions were notified through Resolutions
published in the Gazette of India”
On this background insisting for amendment to pension regulations for
updation of pension in RBI is nothing but giving step-motherly treatment towards pensioners of RBI.
RBI promised updation of pension at
the time of introduction of the pension Scheme
9. At the
time of introduction of the pension scheme the Bank had issued circular in
March 1992 wherein the Bank on its own volition unequivocally averred that
updation of pension is unique feature of the pension scheme. A mention has
been made in the memorandum approved by CCB in September,2011 to the effect
that revision of pension has been promised to the employees which has been
forwarded to GOI along with amendments to pension regulations for approval. As
per the doctrine of “Promissory Estoppels” the Bank is supposed to fulfill its
promise.
Supreme Court’s Judgments in favour of
updation of pension under Fundamental Rights- Article 14
10.The Supreme Court in its
judgment, in the case of All India Reserve Bank Retired Officers Association,
ruled that in the case of pensioners it is necessary to revise
pension periodically to take care of continuous fall rupee value and ever
increasing prices of commodities which necessitate adjustment in pension
amount. SC also held that pension is their statutory inalienable legally
enforceable right and as it should revised, fixed not entirely dissimilar to
the salaries granted to serving employees. The SC also held that pensioners who form a
homogeneous group can not discriminated on the basis of cut off date
or on the basis of date of retirement i.e. some have retired early and some
have retired later. Such discrimination is void and violative of Article 14
of Constitution of India-Nakara Case.
Recently, Supreme Court heard 3 petitions of
GOI against updation of pension and all 3 petitions were rejected and SC
granted One Rank One Pension (OROP) without discrimination to Govt employees
w.e.f.date of wage revision i.e. 1st Jan. 2006.
We are, therefore, of the considered opinion
that MoF and RBI combined violating Article 14 of the Constitution of India.
This is a very serious matter from nation’s point of view
RBI Pensioners suffer very badly in inflationary
economy of India
11.In inflationary economy of India, RBI pensioners are suffering
great erosion in their pension amount. As such you may kindly help us for
updation of pension at the earliest.
Govt. Exchequer has not to spend even single
farthing as RBI has developed its own pension fund as per legal provisions
12.RBI has a pension fund
which has closing balance of
Rs.10782.25
crores as on 30th June 2014. There is no question of any loss to
Government exchequer as this fund has been contributed by RBI employees at
higher rate in comparison of others and also looked after by the Bank strictly in terms of RBI act and actuarial
practices. It may be stated here that RBI community is also proud that no other institution / body has paid huge
funds out of its profit to GOI as RBI
has over the period under the able guidance of successive Governors and
Boards. RBI community is also proud to function best of its ability and build
this great edifice of which nation should be proud of. Whatever preserved and developed by way of pension fund is for old age
of RBI community and it deserves to avail this as a social security.
GOI has no legislative
backing to oppose updation in RBI
13.It is made clear by the
Ministry of Finance in their submissions to the Bombay High Court in the
pending writ petition that they have not issued any directive to the Reserve
Bank under regulation 7 of RBI Act to withdraw updation of pension. The
Governor may, therefore, be advised to update the pension as the GOI has no legislative
provision to come in the way of updation of pension in RBI.
Much
damage has been caused during the last 12 years(i.e. since 1st Nov.
2002 settlement) to RBI pensioners and family pensioners and thousands of them
have left for heavenly abode on account of advanced age and other ailments,
without availing what was due to them as per the law of the land. This sounds ruthless by any standard of
humanity. You may, therefore, please
take up this matter with new GOI and help us as good Samaritan for which we shall be indebted to you forever.
L R Parab
The General
Secrertary
Reserve Bank
Retired Employees Association
Mumbai,
25th
Nov. 2014 .
Mob. 9869021624
