Letter To CMD Punjab National Bank

COMMON CAUSE CONSORTIUM, KERALA

(Registered under the Travancore-Cochin Literary, Scientific and Charitable Societies Registration Act, 1955)

(Registration No. EKM/TC/249/2017)

          TCRA 87, Sreevilasam Road, N Paravur, Kerala -683513 Mobile: 9446385945 E-Mail: commoncausekerala@yahoo.com

President : C N Venugopalan                            Secretary: B Rajendrababu                         Treasurer:  N Vasudevan

From the desk of the President

No.204 :2017                                                                                                            12th July, 2017

Shri. Sunil Mehta, Managing Director & Chief Executive,

Punjab National Bank, Bikhaji Cama Place, New Delhi – 100 001

Sir,

Punjab National Bank - Defalcation of Pension Fund of employees

Live Mint of 30th June, 2017 brought to light information on write back of Rs.2,023 Crores from the Pension Fund to post a profit of Rs.259 Crores in the financial statements of the Bank as of 31st March, 2017.

In terms of regulation 5 (2) of Pension Regulations, the Pension Fund has the sole purpose of payment of pension/family pension.  Regulation 11 provides for actuarial valuation of Pension Fund and additional contribution by Bank to make good any deficit. Nowhere there is provision for application of Pension Fund for any other purpose.  In short the write back of Pension Fund was misapplication of Pension Fund which is illegal and a major crime that attracts punitive action.  Pension Fund is the deferred wages of the employees and the money of the employees. The Bank was on other words robbing the people who work/worked for it.

The above apart, there was falsification of account to show illusory profit misleading the general public, more particularly the stakeholders including the government.  In lieu of loss of Rs. 1,764 Crores a fictitious profit of Rs.259 Croes was projected to conceal the backdrop in performance. The general public paid higher price for the shares and got duped.  This was in breach of the listing agreement with the Stock Exchanges, entitling any citizen to approach them for delisting the shares of the Bank and the SEBI not to allow any public issue of shares by the Bank.

Additionally, anyone is free to approach the Reserve Bank of India investigate into the fraud and to initiate action including debarring the statutory auditors from undertaking bank audits. The Board of Directors that approved the annual accounts also is in gross default and dereliction of duty while approving the wrong and inflated profits.   

In the above circumstance, we request you to let us know reasons, if any, as to why the matter shall not be taken up with SEBI, NSE, BSE and Reserve Bank of India, Vigilance Commission and MoF with request to initiate appropriate action in the areas of their jurisdiction besides filing a PIL petition at a competent court for requisite legal remedies /punitive action.  We request you to have your reply/response in the matter expeditiously.

Thanking You,

Yours faithfully,

C N VENUGOPALAN  

Nandanam, Kesari Junction, N Paravur, Kerala – 683513 Mob: 9447747994 E Mail: ceeyenvee@gmail.com