Is It High Time Now To File A
PIL for Ignoring Retirees in Xth BPS? - Give Your Suggestions On More
Points That Needs To be Included
by
K R Ganesh Rao
Opening Comments by
ABS :
The recent Record Note has shaken the
retirees as it has proved beyond doubt that UFBU is not at all interested in
the issues of the retirees and IBA has shown its intent to that completely
reject the claim of the reitrees for their demands like pension to left overs
and updation of pension etc.
The Record Note’s starting paragraph
wherein UFBU leaders and IBA have shamelessly recorded as “IBA maintained
that any demands of retirees can be examined only as a welfare measure as
contractual relationship does not exist between banks and retiree. The periodic
wage revision exercise based on mandate from member banks cover only wages and
service conditions of serving employees” is the last nail in the head of
retiree to keep them unmoved. In the light of this, it was
thought that Retiree Associations / Unions / Organisations will come forward
for legal remedies. But it has been noticed that they have deep
associations with UFBU leaders and thus are not interested to take UFBU or IBA
head on. They are now adopting dilly-dally tactics under the influence of
UFBU leaders, who have been exposed beyond any doubt. Having noted this, some individual retirees have come forward
to take up the issues of retirees.
Retirees are being disgusted as neither
UFBU nor IBA is interested in getting these issues settled. After
the last BPS also, both of these never tried to resolve any issues for certain
reliefs which retirees got were purely on account of individuals fighting upto
Supreme
Court. As there was no action against IBA or Banks for taking anti-employee stand in Courts, they have got emboldened and thus signed the Record Note. There is a strong need now to curb the wings of IBA and Bank Management and even RBI for taking anti employee stands.
Court. As there was no action against IBA or Banks for taking anti-employee stand in Courts, they have got emboldened and thus signed the Record Note. There is a strong need now to curb the wings of IBA and Bank Management and even RBI for taking anti employee stands.
Therefore, once again few known
veterans have started exploring possibilities of filing cases in Courts on
individual or in groups. We welcome this but would prefer if these
can be fought on single forum. We have received a write up from Mr
K R Ganesh Rao (Mr Rao is a Retired bank officer who superannuated
from the post of Chief Manager of Bank of Baroda in February 2012 after
39 years of service). He has also been giving his views on ABS through
comment column. Now he has sent us a full-fledged write up, in the
shape of a draft PIL, which is highly appreciable.
I have gone through the write up.
It is a beautiful write up and
contains number of issues which will certainly put many cuts on the bodies of
IBA and RBI in particular and Banks and unions in general.
It exposes the wastage of public’s hard earned money for sustaining a
unregistered body like IBA. Banks and RBI shrugging their
responsibilities by using IBA as “Shikhandi” of Mahabharata. In view of the fact that income and expenditure
of IBA is not in public domain, there are doubts whether the funds are even
diverted towards illegal activities like bribing the top leaders so that they
toe the line of IBA on negotiating table, though take different postures when
they address their cadre. Is it proper that funds
contributed by public sector banks (we can say public money) is not properly
accounted, audited and placed in public domain? Thus, there is a
need to bring transparency in this unregistered body by making their all activities
know to public at large.
We are reproducing the write up of Mr
Rao and will request him to take initiative to consider filing of PIL at an
early date. However, before that we would like our readers to put
their suggestions for additional issues or new arguments which can strengthen
the PIL. You can give your suggestions in the comments column.
Write Up (In the shape of a draft PIL) As Sent by Mr K R
Ganesh Rao
“To.
01. Union of India, represented by its
Secretary, Department of
Financial Services,
Ministry of Finance, Government of
India,
North Block, New Delhi – 110001.
02.
Reserve Bank of India
Central Office Building,
18th
Floor, Shahid Bhagat Singh Road,
Mumbai
– 40001.
03. Central Bank of India
Head
Office, Chander Mukhi,
Nariman
Point, Mumbai – 400 021.
04. Bank of India
Star
House, C-6, G Block, Bandra Kurla Complex,
Bandra
(E), Mumbai -400051.
05. Punjab National Bank
Head
Office, No. 7, Bhikaji Cama Road,
New
Delhi – 110007.
06. Bank of Baroda,
Baroda
Corporate Centre,
C-26,
G Block, Bandra Kurla Complex,
Bandra
(E), Mumbai -400051.
07. United Commercial Bank
Head Office,
10, B T M Sarani
Kolkata - 700 001
08. Canara Bank
Head
Office, J C Road,
Bengaluru
– 560002.
09. United Bank of India
No. 11 Hemant Basu Sarani
Kolkata – 700001.
10. Dena Bank,
C-10, G Block, Bandra Kurla Complex,
Bandra East, Mumbai – 400 051.
11. Syndicate Bank,
No.
16/255 and 16/365A,
HO,
Manipal, Udupi District,
Pin
576104, Karnataka.
12. Union Bank of India
Union
Bank Bhavan,
239,
Vidhan Bhavan Marg,
Nariman
Point, Mumbai – 400 021.
13. Allahabad Bank
No.
R, Netaji Subhash Road,
Kolkatta
GPO, Kalkotta – 700 001.
14. Indian Bank
No.
254 – 260, Avvai Shanmugam Salai
Gowdia
Mutt Road,
Royapetta,
Chennai – 600 014.
15. Bank of Maharashtra
No.
1501, Lokmangal,
Central
Office, Shivajinagar,
Pune
– 411 005.
16. Indian Overseas Bank
No.
763, Anna Salai,
Chennai
– 600 002.
17. Vijaya Bank,
No.
41/2. M G Road,
Bengaluru
560 001.
18, Corporation Bank,
Head
Office,
Mangala
Devi Temple Road,
Pandewhwar,
Mangaluru 575 001.
19. Andhra Bank,
No.
5-9-11, Dr Pattabhi Bhavan,
Secretariate
Road,
Saifabad,
Hyderabad – 500 004.
20, Punjab and Sind Bank
No.
21, Bank House,
I
Floor, Rajendra Place,
Delhi
– 110 008.
21. Oriental Bank of Commerce,
Plot
No. 5, Institutional Area,
Sector
32, Gurgaon – 122 001.
Haryana.
22. State Bank of India
IV
Floor, State Bank Bhavan,
Madam
Cama Road,
Mumbai-
400 021.
23. State Bank of Mysore,
Head
Office, K G Road,
Bengaluru
– 560 009.
24. State Bank of Travancore,
Head
Office, Poojapura,
Thiruvananthapuram,
Pin
695 012.
25. State Bank of Hyderabad,
4th Floor, Hibank Towers,
Opposite Petrol Bunk, Near Chermas,
Gunfoundry-Abids, Hyderabad – 500001.
26. State Bank of Bhikner and Jaipur,
Head
Office, Tilak Marg,
Jaipur
– 300205.
27. State Bank of Indore,
No.
5, Head Office,
Y
N Road, Indore – 452003.
28. Indian Banks Association
World
Trade Centre Complex,
Centre,
1, 6th Floor,
Cuffe
Parade, Mumbai – 400 051.
29. All India Bank officers’ Confederation,
C/o
Bank of India, Parliament Street Branch,
PTI
Building, No. 4, Parliament Street,
New
Delhi – 100 001.
30. Indian National Bank Officers’ Congress,
C/o
Bank of Baroda,
No.
3, Walchand Hirachand Marg,
Ballard
Pier, Mumbai – 400 001.
31. All India Bank Officers’ Association,
A
K Nayak Bhavan,
No.
14, Second Line Beach, II floor,
Chennai
– 600 001.
32. National Organisation of Bank Officers,
Kasturi,
371-B,
Shaniwar Peth, Pune-411 030.
Shaniwar Peth, Pune-411 030.
33. All India Bank Employees’
Association,
No.
164, Linghichetty Street, Parrys,
George
Town, Chennai 600 001.
34. National Confederations of
Bank Employees,
State
Bank of India Building, Bank Street,
Koti,
Hyderabad – 500 095.
35. Bank Employees Federation
of India,
Naresh
Paul Centre, No. 53,
Radha
Bazar Lane,
Kolkata
– 700 001.
36. National Organisation of
Bank Workers,
Central
Office, No. 542,
Dr.
Munje Marg, Congress Nagar,
Nagpur
– 440 012
37. Indian National Bank
Employees Federation,
C/o
Central Bank of India,
Bajaj
Bhavan,
I
Floor, Nariman Point,
Mumbai
– 400 021.
Re:
Indian Banks’ Association – Unregistered body, No force of Law in its
clarification, advices, instructions etc, No Rule of Law, Bye-passing Reserve Bank
of India and Government of India without authority and so on.
Sirs,
I,
K R Ganesh Rao, aged 63 years, son of Late Ramachandra Rao, residing at
‘Ashray’ No. 224, F Block, 14th Main Road, Sahakar Nagar, Bengaluru
– 560 092 do hereby state as under and issue Public Interest Notice to the
parties 1 to 37 above.
01.
That the Party No.1 is the Department of Government of India, and the Party
No.2 is Central Bank of the country, formed under Reserve Bank of India Act
1934, and its capital is fully owned by the Government of India. By virtue of
this status of Parties 1 and 2 are State as per Article 12 of the Constitution
of India.
02. Parties Nos. 3 to 16 are
popularly called Nationalised Banks, which were nationalized in 1969 and formed
under Banking Companies ( Acquisition and Transfer of Undertaking ) Act 1970,
and as on day their capital holding is more than 51% by Government of
India, and they are State as per Article 12 of the Constitution.
03. Similarly parties Nos. 17 to
21 are also popularly called Nationalised Banks which were nationalized in 1980
and formed under Banking Companies ) Acquisition and Transfer of Undertakings )
Act 1980, and as on day their capital holding is more than 51% by Government of
India and they are State as per Article 12 of the Constitution.
04. The Party No. 22 is formed
under State Bank of India Act 1955 and its capital holding to the extent of
more than 51% is held by Government of India and it is State as per Article 12
of the Constitution.
05. Parties Nos. 23 to 27 are State
Bank group Banks formed under State Bank of India ( Subsidiary Banks ) Act 1959
and their capital holding is held by the Government and its agencies to an
extent more than 51% of share capital and they are all State as per Article 12
of the Constitution.
06. Party No. 28 is an
Association of Banks in the country formed on 26.09.1946 with 22 member banks
and as on April 2015, it has 201 members comprising of Public Sector Banks,
Private Sector Banks, Foreign Banks having offices in India and Urban
Co-operative banks. This party is called Indian Banks Association
(shortly called as IBA) is neither registered under Societies Act 1860 nor
Trade Union Act 1926. Its members are all employers representing banks. By
virtue of this status, IBA is an association of employer banks, but not a legal
entity and it is only an unregistered body of association of banks/employers.
Though the contributions to IBA are made from Banks which are State, as per the
decision Central Information Commission, the IBA is not coming under Right
Information Act 2005.
07. Parties Nos. 29 to 32 and 33
to 37 are associations of officer employees and trade unions of workmen of
banks respectively and they and their affiliates are registered under Trade
Union Act 1926 as officers/employees associations/ unions.
08. Party No. 28, being a
unregistered body of association of employer banks, that is either registered
under Trade Union Act, 1926 nor under Registration of Societies Act, 1860, and
being engaged in Banking Activities against the Rule of Law. Some of its
activities are as under:
a. Periodically, wage revision is
taking place in the country to bank employees and with the written mandate of
members of banks of IBA, IBA is negotiating wage revision with representatives
of workmen unions and officer employees. The recent 10th Bipartite
Settlement has been negotiated between the IBA and workmen unions and officer
representatives, since 31.10.2012. On this day, the Officer Representatives
submitted their Charter of Demands, demanding 40% increase in their existing
wages and settled at 15% increase. The wage revision process started in
November, 2012 and ended on 25.05.2015, taking time of 31 months. During the
negotiations, the IBA took a stand of net profits are not adequate to consider
increase in wages, instead of following the section 10(7) of Banking Companies
( Acquisition and transfer of undertakings ) Act 1970,
which says that the provisions for bad and doubtful debts, depreciation on
assets, staff cost and superannuation cost and provision required under law,
and thereafter the net profits to be used for payment of dividend to the
owners. That is to say that staff cost and superannuation cost has prior charge
over the net profits. On account of illegal stand taken
by IBA and delay caused in arriving at the settlement, the staff of banks
became restless and resorted to strikes during the last 31 months wage revision
talks. This caused enormous hardship the PUBLIC and nation’s and public
interest are affected thereby resulting in adverse effect on economic activity
of the country.
b. At the end of the wage
revision, IBA and 9 other constituents of the UFBU
issued a joint statement on 25.05.2015, mainly stating that THERE IS NO
CONTRACTUAL RELATIONSHIP BETWEEN THE BANKS AND RETIRED EMPLOYEES, AND PENSION
IS AS WELFARE MEASURE. This
is absurd and illegal stand of the above
signatories, which ultimately results in litigation in courts, thereby the
precious time of courts has to be spent on litigations arised on account of the
illegal stand of the above joint statement called Record Note of Discussion
dated 25.05.2015, which is also against Public Interest.
c. The parties above 1 to 27,
except party No. 22 and members of IBA, are giving authority to IBA to
negotiate wage revision for bank employees in the country. Members of IBA and
some of the members are State by virtue of PSU nature, are authorizing IBA in
this regard, without Authority of law, to a unregistered body IBA which is
against Rule of Law and Public Interest, as the unregistered body IBA
has no representative capacity to represent its member banks, Reserve Bank of
India and Government of India.
d. A Joint Note dated
27.04.2010 for providing second option to the left over of employees who did
not opt for pension in the first offer made in 1993 to cover the employees on
the rolls prior to 29.09.1995. Later on IBA
unilaterally issued a clarification to the bilateral joint note stating
that the resignees, voluntarily retired employees, compulsorily retired
employees are not eligible to opt pension for the second time, thereby, many
writ petitions have been filed in the various high courts of the country. This
illegal act on the part of the IBA has resulted in unwanted litigations,
causing stress of time to already burdened judiciary, which is against the
public interest.
e. The Supreme Court of India,
has given verdict that the compulsorily retired officers have to be given
pension reaching the finality of judgment on the subject matter. When the Party
No. 6 was approached to extend the judgment of the Apex Court in a similarly
placed compulsorily retired employee, quoting the various judgments of the
courts in similar situation, the Party No. 6 says that “ There are no specific
guidelines from Govt. /Indian Banks’ Association for inclusion of employees who
have been compulsorily retired from bank’s service”. The Party No. 6 is
State as per the Constitution of India, and waiting for specific guidelines
from IBA, which is unregistered body, whose guidelines specific or normal have
no force of law and are against Rule of Law and Public Interest.
f. Recently, the Party No. 28, the unregistered body of
employers association, Indian Banks’ Association, has issued a clarificatory
instruction/advice to its member banks, vide its circular No. HR &
IR/76/H7/E9/755 dated 11.05.2015, stating that
i) it gave instructions to
its member banks that it equated the compulsory retirement under regulation 4
(h) of Bank Officer Employees ( Disciple and Appeal ) Regulations 1976/1982
with termination of service and not under meaning of retirement mentioned in
Regulation 38 of Officers Service Regulations 1979 and accordingly issued a
circular to its member banks not to pay leave encashment on compulsorily
retired officers with effect from 27.11.2000.
ii) it says further all PSU banks
except SBI are not permitting leave encashment as per Regulation 38 of Officers
Service Regulations 1979/1982 and affected officers approached Courts and got
relief in their favour and Government of India, Department of Personnel and
Training vide O M No. 14028/1/2004-Estt (L) dated 13.02.2006 has also decided
to extend benefit of leave encashment to compulsorily retired officers.
iii) Now it says due to decisions
of the Courts and Government of India, the personnel committee has decided in
the meeting held on 30.04.2015, approved the recommendations of the HR
committee of IBA and decided to permit encashment of PL for compulsorily
retired employee/ Officers.
It is pertinent note that the
Regulations, namely Bank Officer Employees ( Disciple and Appeal ) Regulations
1976/1982 and Officers Service Regulations 1979/1982 are Subordinate
Regulations enacted In exercise of powers conferred by section 19 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, ( 5 of
1970). The board of Directors of Banks in consultation with the Reserve Bank of
India and with previous sanction of the Central Government the regulations are
made. These regulations are notified in the Gazette of Central Government
and have become effective from 01.10.1976 and 01.07.1979 respectively in
respect of parties 3 to 16 and in respect of parties 17 to 21 are from 1982.
These regulations have force of law. The Personnel committee of unregistered
IBA is not empowered to decide in the meeting to deny or permit encashment of
leave to compulsorily retired officers of the banks. The clarificatory
instructions given by unregistered IBA is not proper and legal amendment to the
Regulations quoted above. Further, the unregistered IBA says some officers have
got relief in their favour from courts and they would get leave encashment as
per the orders of the court and now IBA says that it permits leave encashment
from 30.04.2015, the day on which the personal committee took decision in the
meeting. This results in discrimination among similarly placed persons. The act
of the part of unregistered body IBA is in violation of Article 14 of the
Constitution. The PSU banks except SBI should not follow such illegal
instructions of unregistered body IBA. Therefore, such decisions of IBA and
adhering of such decisions by the banks which are State as per article 12 of
the constitutions results in further litigation, which is against Rule of Law
and Public
Interest.
g. The IBA party No. 28, has been collecting huge sums of money from
its member banks towards, Annual Subscription fees, Advertising expenses,
Bipartite Discussion expenses, Fixed Asset Fund, Training, Conference, National
Level Awareness, HR issues, Law charges and so on. Being a unregistered
body, the party No. 28, is not submitting its annual accounts of income and
expenditure, receipts and payments, assets and liabilities to any authority
under Registration of Societies Act, 1860 or under Trade Union Act, 1926
or to any government authorities. No Law in the country has authorized the
unregistered body IBA to collect such huge sums of money from the State
instruments and conversely such State instruments are not authorized to engage
such unregistered body IBA to pay such huge sums to unregistered body. Hence it
is pertinent to note that the above banks are not authorized by law to pay such
money to unregistered body and the said unregistered body is not legally
authorized to collect such huge funds from the banks and spent such huge funds
without any accounting procedures required under law. The under mentioned
table shows amounts paid by banks and collected by unregistered IBA
Amount in Rs.
Period
|
State Bank of India
|
Bank of Baroda
|
Canara Bank
|
2004-05
|
N A
|
N A
|
7,00,000.00
|
2005-06
|
16,03,011.00
|
N A
|
6,00,000.00
|
2006-07
|
12,62,336.00
|
N A
|
6,00,000.00
|
2007-08
|
25,64,276.00
|
19,29,039.00
|
6,00,000.00
|
2008-09
|
28,24,601.00
|
13,45,343.00
|
6,00,000.00
|
2009-10
|
21,48,629.00
|
11,80,280.00
|
6,00,000.00
|
2010-11
|
4,63,16,079.00
|
1,11,88,662.00
|
6,00,000.00
|
2011-12
|
19,68,176.00
|
53,62,082.00
|
6,00,000.00
|
2012-13
|
10,02,723.00
|
27,51,359.00
|
6,00,000.00
|
2013-14
|
37,61,424.00
|
31,80,963.00
|
N A
|
In May 2015
|
37,40,815.00
|
N A
|
N A
|
{ N A – Not Available }
It is interesting that the Party No. 22
State Bank of India, has paid a huge sum of Rs. 4,37,15,000.00 on 24.02.2011 to
this unregistered IBA towards National Level Awareness. From the above table,
that the 3 member banks of unregistered IBA have paid crores of rupees to
unregistered body IBA and this unregistered body IBA has 201 members, the
contributions from all member banks runs to hundreds of crores of rupees. The
legality of collection of money from member banks of unregistered body IBA and
legality of payment of money by the above members and other member banks of
unregistered IBA to unregistered IBA is against the Rule of Law. The
contributions are from the profits of the member banks are public profits and
capital is given to the above banks from the taxes paid by the citizens of the
country in case of PSU banks. Without, proper procedure as per law, authority
of law, public money cannot be paid by the State instruments and cannot be
spent by unregistered IBA and is against Rule of Law and Public Interest.
Being unregistered body, collecting public money grant from
State instruments and other banks who are all governed by Banking Regulations Act, 1949, arised out of income derived from general Public of the country, and spending the same without any authority of law and not accountable to any Public Authorities, by way of submitting its accounts, has to be checked and controlled by an independent and competent authority, in the interest of Rule of Law and Public Interest.
State instruments and other banks who are all governed by Banking Regulations Act, 1949, arised out of income derived from general Public of the country, and spending the same without any authority of law and not accountable to any Public Authorities, by way of submitting its accounts, has to be checked and controlled by an independent and competent authority, in the interest of Rule of Law and Public Interest.
h. The unregistered body IBA periodically
instructing the above banks and other member banks about Banking encroaching
into the domain/functions of Central Bank of country, Reserve Banking Of India
such as
i). Calculation of Drawing Power
in consortium accounts including CDR/bilaterally restructured accounts, vide
its circular No. C&I/Circular /2014-15/689 dated 29.09.2014,
ii). Pado Pardesh Scheme of
interest subsidy for minority community students submission of claims vide its
circular No. SB/CIR/10-21-PPS/1149 dated 08.01.2015,
iii). Simplifying the Demat
Account opening Process vide its circular No.
C&I/Circular/2014-15/1413 dated 27th February, 2015.
iv). Central Repository of
Information on Large Credits (CRILC) Framework for Revitalising Distressed
Assets in the Economy vide its circular No. C&I/Cir/2015-16/1611 dated 10th
April, 2015.
v). Scheme for Extending
Financial Assistance to Sugar Undertaking, 2014 ( SEFASU, 2014)
vi). and so on,
It is pertinent to
note that an unregistered body IBA cannot take away the functions of Central
Bank of the country and the Banks which are State instruments cannot follow the
instructions of unregistered body IBA, as the instructions of unregistered
body IBA have no authority of law and force of law. Further Reserve Bank of
India, cannot delegate its functions, duties, powers to a unregistered body
IBA, and Reserve Bank of India further cannot be a mute spectator of
unregistered body IBA’s activities, which are all against the
Rule of Law and not in Public Interest.
09. The Party No. 31
and Party No. 33 have issued a joint circular dated 16.09.2014,
calling to
Observe All India Day – 15th
September, 2014
Demand Stern Action to recover huge bad
loans
Denounce indiscriminate Restructure of
Corporate Loans and sale of Bad Loans
And further detailed alarming increase
of bad loans as under:
As on the day
of financial closing
|
Amount in Rs.
Of Crores
|
31.03.2008
|
39,030
|
31.03.2009
|
44,954
|
31.03.2010
|
59,927
|
31.03.2011
|
74,664
|
31.03.2012
|
1,17,000
|
31.03.2013
|
1,64,461
|
30.09.2013
|
2,36,000
|
31.03.2014
|
2,50,000
|
Fresh Bad Loan Rs. 4,95,000 crores in 7
years in Public Sector Banks
Financial Year
|
Amount in Crores of
Rupees
|
Fresh/new NPAs
during 2009-10
|
44,818
|
Fresh/new NPAs
during 2010-11
|
58,226
|
Fresh/new NPAs
during 2011-12
|
92,808
|
Fresh/new NPAs
during 2012-13
|
1,19,613
|
Fresh bad loans in
the last 4 years (2009 to 2013)
|
3,15,465
|
Fresh bad loans in
the last7 years (2007 to 2013)
|
4,94,836
|
Further it has been detailed as
Particulars
|
Amount in crores of
rupees
|
Bad loans
restructured & shown as good loans (June 2014)
|
2,51,000
|
Fresh bad loans in
the last 7 years
|
4,95,000
|
Profits adjusted
for provisions towards bad loans (2008 to 13)
|
1,40,000
|
Bad loans written
off in the last 13 years
|
2,04,000
|
In furtherance of the joint circular
dated 16.09.2014, the party No. 33 released a list of bank loan defaulters in
Public Interest, naming 406 defaulters against whom legal proceedings are
initiated by Public Sector Banks named above, in which Kingfisher leads the top
of the defaulters. The list names
a.
Kingfisher
Airlines Rs.
2,673 crores
b.
Winsom Diamonds & Jewellery
Co
Rs. 2,660 crores
c.
Electrotherm
India
Rs. 2,211crores
d.
Zoom Developers P
Ltd
Rs. 1,810 crores
e.
Sterling
Biotech
Rs. 1,732 crores
f.
S Kumars
Nationwide
Rs.
1,692 crores
g.
Surya Vinayak
Industries
Rs. 1,446 crores
h.
Corporate Ispat
Alloys
Rs. 1,360 crores
i.
Forever Precious Jewellery &
Diamonds
Rs. 1,254 crores
j.
Sterling Oil
Resources
Rs. 1,197 crores
k.
Varun
Industries
Rs. 1,129 crores
The total amount involved in 406 top
defaulters in country amounts to Rs. 70,300 crores and the total bad increased
four fold in 4 years from Rs. 39,030 crores to Rs 1,64,000 crores from March
2008 to March 2013.
These bad loans not only do not earn
interest to the banks but also eaten away interest earned from good loans by
way of provisions to be provided as per section 10(7) of Banking Companies
(Acquisition & Transfer of Undertakings) Act 1970/80 and other laws
applicable to State Bank of India and its group of banks. Though there is Staff
Accountability and Responsibility Policy in loans, in the banks, it has been
meticulously followed at lower level, but at the higher level, the Staff
Accountability and Responsibility Policy in loans, is not effective, because of
Conflict of Interest. The above loans and other high volume loans are
sanctioned by Consortium of Banks, Boards of the Banks, Committee of
Executives, Executive Directors, Chairmen and Managing Directors. In consortium
of Banks and Committee of Executives, the Executive Directors and Chairmen and
Managing Directors are members. When these Executives have sanctioned the
above such loans, the Staff Accountability and Responsibility in loans, process
won’t be carried out by themselves effectively or by their junior executives on
account of being subordinates to the sanctioning authorities. As such, Public
Interest is involved, to have proper control over the funds of the Public, that
is to say, if the public money is properly and judiciasously deployed, the
earnings of the bank will improve, the share holders including the Union
Government, will get more money to exchequer and the general public, will get
cheaper credit and higher interest on deposits, from the banks. This is on
account of the fact that the provision on bad loans need not provided in
the books of the bank. Hence, Public Interest of national economic
activity is involved in this, the Party No. 1 and 2 have to evolve a
policy to have checks and balances on high volume loans sanctioned by top level
executives and their committees by an independent agencies other than their own
banks or consortium of banks.
10. As on now,
there is no Staff Accountability and Responsibility Policy in Administrative
decisions taken by the personnel in the banks, because of this many of
administrative decisions have been contested in courts of law, thereby the load
on the judiciary has increased. A classic case is S K Kool Vs Bank of Baroda.
Kool was punished by the Disciplinary Authority with punishment of
“ Removal from service with superannuation benefits as would be due
otherwise and without disqualification for future
employment”. Bank promptly implemented first part of the
punishment, that is Removal from bank’s service, When the
question of release of superannuation benefits came, he was not paid pension.
Pension is also a part of superannuation benefits. That is to say bank has not
honoured its own Order in full. Then Mr.Kool referred the matter
Central Government Industrial Tribunal, wherein he got relief, aggrieved with
this, bank appealed to High Court of Allahabad and SLP at Supreme Court and
Review Petition at Supreme Court. During the litigation, Mr Kool passed away,
ultimately he could not enjoy the fruits his legal struggle and he left it to
his heirs.
Though legally both the parties are equal in the suit, but financially, Bank is
strong and Mr Kool was very very weak with limited sources and dependent wife
and children to feed. Whereas bank has spent enormous money, time, energy
of public, without any Staff Accountability and Responsibility
Policy in Administration area, despite the fact that there is no dearth
of hierarchy of full time Law Officers on its rolls. The Personnel who
have taken decision to deny him pension, to contest issue in C G I T, H C and S
C go unquestioned without any accountability and responsibility for their
decisions and peacefully retire from the service of the bank. Though there is
National Policy of litigation, banks have not implemented, which has come into
force due to the fact that Government and its Agencies are major litigants. So
there is need in Public Interest to have Staff Accountability and
Responsibility Policy in Administration area to minimize the litigation and to
fix accountability and responsibility on decision makers, and so that the weak
victims such administrative decisions do not suffer at the hands of such
administrative decision makers, otherwise, Let the Court Decide will be the
decision makers thinking and policy at the cost of public interest.
11. It is pertinent to note that the
Central Government employees have Central Administrative Tribunals in each
state capitals and State Government Employees have State Administrative
Tribunals in their States. Likewise, the workman of State Public Sector
Undertakings and Private Undertakings have State Labour Courts and the Workman
of Central Public Sector Undertakings have Central Government Industrial
Tribunals in each State Capitals. Whereas the
Non-workman have no such Administrative Tribunals or Industrial Tribunals and
they have to approach High Court to invoke the Writ Jurisdiction. On account of
this load on the High Courts in the country has been increased and there is
need to have a Separate Administrative Tribunals for Central Government Public
Sector Undertakings’ non-workmen employees, in each State Capitals. Hence the
Party No. 1 is requested to explore constitution of such Tribunals for
Non workman employees of Central Government Public Sector Undertaking in Public
Interest.
12. In banking industry in the country,
wage revision to the workman was by way of Award given by the Sastry
Award and Desai award and at the same time, each bank had its own service
conditions and pay scales for Officer employees. After nationalization of 14
major banks in the country on 19.07.1969, the Central Government constituted a
Pillai Committee to rationalize the service conditions and pay scales of
Officers of Nationalised Banks. Pillai Committee gave its recommendations and
they were implemented in the 14 major nationalized banks, and they were called
Officers Service Regulations 1979, came into effect from 01.07.1979. Further
when the Central Government nationalized 6 other banks in the country, these
Officers Service Regulations were adopted in these 6 other banks and were
called Officers Service Regulations 1980. And thereafter, the wage revision
negotiation was entrusted to unregistered body IBA by the member banks of
Unregistered IBA and the Unions and Associations representing Workmen and
Officer employees started negotiating with the unregistered body IBA. After
Sastry Award , Desai Award and Pillai Committee several wage revisions have
taken place in the country. However, it is pertinent to note that the
unregistered body IBA has been playing a major role against Rule of Law in the
country and gradually it has become very powerful in unilaterally interpreting
bilateral settlements, regulations, advising, clarifying, instructing on
various subject matters. The banks who are instruments of Acts of Parliament
are implementing such unilateral interpretations of bilateral settlements,
regulations, advices, clarifications and instructions on various subject
matters of unregistered body, IBA against Rule of Law.
It is also pertinent to note that the Unions and Associations are not
objecting to the unilateral interpretation of bilateral settlements and
regulations, which are subordinate legislations. Recently the Unions and
Associations submitted their Charter of Demands to unregistered body IBA with
40% increase in current wages and finally it was settled at 15% increase after
long negotiations of 31 months. During the negotiations the unregistered body
IBA started with 5 % increase in current wages and at one time increased meager
0.5% over earlier offer of 5 % . Demanding 40 % increase by the unions and
associations and offering 5% and thereafter increasing by an offer of 0.5% by
unregistered body IBA and finally settling at 15% increase, is a footpath type
of bargaining, without taking the realistic view of banking business and real
wages to the bankmen is mockery of wage revision negotiations. It has taken 31
long months during the bankmen went on strike, causing much hardship to
the banking public and further affected economic activity on account of
such unscientific wage revision negotiations. This is very much against Public
Interest and party No. 1 to take note of serious nature and explore the possibility
to constituting a Banking Pay Commission periodically to rationalize wage
structure in the Banking Industry. Rationalisation of wage structure and
service conditions are required in uniform, as the Party No. 22 has got its own
wage revision and service conditions in line with Article 14 of the
Constitution of India.
Wherefore,
it is prayed in the interest of Rue of Law and Public Interest,
1. Reserve Bank of India, to take note
of activities of unregistered body IBA such as, encroaching into the activities
and functions of Reserve Bank of India, collecting monies from its members
banks, spending monies without authority of law, not accountable to any Public
Authority as it is a unregistered body, giving unilateral interpretations on
bilateral settlements, regulations, wage revision negotiations, instructing
member banks on various subject matters, etc, to explore Staff
Accountability and Responsibility Policy for Administrative Decisions, Banking
Pay Commission, to take steps to have Staff Accounting and Responsibility
Policy for high volume loans sanction top level executive and their committees
and any actions in the interest Banking in the country, Rule of Law and Public
Interest.
2. Union of India, to take note of
activities of unregistered body IBA such as encroaching into the activities and
functions of Reserve Bank of India, collecting monies from banks and spending
the same without any authority of law, not accountable to any Public Authority
as it is a unregistered body, refrain giving directions to IBA and refrain IBA
in unilaterally interpreting bilateral settlements, regulations, giving
instructions, advices etc to member banks on various subject matters etc to
instruct banks to evolve Staff Accountability and Responsibility Policy in
Administrative areas, to take steps to have effective Staff Accounting and
Responsibility Policy in loans area of high volume loans sanctioned top level
executives and their committees, Banking pay commission and any actions in the
interest of Banking in the country, Rule of Law and Public Interest.
3. unregistered body IBA to refrain
IMMEDIATELY from collecting monies from members banks and spending the
monies without authority of law, and further refrain from unilaterally
interpreting bilateral settlements, regulations, advices, instructions
clarifications etc to member banks, as the unregistered body has no authority
of law and force of law in its instructions, advices, clarifications,
interpretations, In the interest of Indian Banking, Rule of Law and Public
Interest, as the unregistered body IBA has no representative capacity to
represent its member banks, Reserve Bank of India and Government of
India.
4. Further unregistered body IBA is
spending crores of public money grant received from its member banks and
refrain IBA from spending such huge sums of money without checks and control of
Public Authorities, which is against Rule of Law and Public Interest.
5. Parties Nos. 29 to 37 to refrain
from engaging with unregistered body IBA, as it has no authority of law and
force of law in the interest of Indian Banking, Rule of Law and Public
Interest
6. Therefore, All the above named
parties from 1 to 37 to take note of the above averments and take suitable
steps, in the interest of Indian Banking, Rule of Law and Public Interest and
any neglect of above prayers by the parties 1 to 37 named above, will be at
their peril, cost and consequences.
Source: http://www.ba-bamail.com/content.aspx?emailid=16381&memberid=933507
