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Sunday, July 19, 2015

Questions ON UFBU And IBA

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
(Source Allbakingsolutions.com Presented by Rajesh Goyal)
Presented in the larger interest of Bank Employees

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 retirees 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.  
 
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.
 
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.
 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.



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