Deficiencies in IBA.
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1. The Indian Banks Association i.e, IBA informed that the relationship between *Banks and Employees is like a Master and Servant* Once Servant is Retired there is no relationship between the Master and Servant. Master need not discuss with the Retired Servant.
*First the IBA has to withdraw this statement*use
a) *It is applicable only to Individuals, but not in the case of Organisations*
b) The relationship in the Organisation is known as Working employees and Employer and after retirement the relationship is known as Retired Employee and Employer.
2. It was mentioned by IBA that Retired Servant can not discuss post retirement issues with the Master.
a) *The Pension Corpus Fund was created with the Provident Fund of the Employees, who are the owners of the Pension Fund*
b) The Pension Corpus Fund has to be managed by a Managing committee consisting of Directors represented by (Serving & Retired) Officers, Award Staff and Directors from Bank Managements to monitor the the transactions of the Pension Fund. But unfortunately there is no representation in the Board Directors from the Retired Employees or Officers, which is against the *Principles Natural Justice*
3) IBA informed that Retired Servants should not discuss post retirement issues with their Master.
a) *The Retired Employees & Officers are leading the Employees & Officers Organisations' in various capacities ie. as General Secretary, President, Vice President, Treasurer, etc.*, They are participating in Bipartite settlement negotiations and also signed the MOUs, Bipartite settlements, Joint Notes, etc.,
b) Then how these agreements are valid, which were signed by the Retired servants.
4. ID Act is applicable only to the Award Staff and hence they can only be party to the Bipartite Settlements. They can only negotiate and sign the Bipartite settlements, MOUs. But we can observe from the MOU dated: 22-07-2020 was signed by Leaders of Award Staff and Officer Staff (who are also retired Servants).
5. Since the ID Act is not applicable to Officers, a Joint Note were prepared and signed by the leaders of the Officers' Organisations (who are also Retired servants).
It was also mentioned that the joint note is not having any statutory validity and hence legally not enforceable.
*It is clearly evident that the IBA has been misleading the Officers Community, in connivance with the leaders of Officers Organisations*. It is a clear case of cheating by IBA with the connivance with Officers Organisations.
6. IBA is merely a voluntary association of banks and other financial services players:. IBA is neither Government/ Government Department nor a Regulator and
not even a
Self- Regulator/ Self- Regulatory Organization ;. IBA has no authority over banks and other financial services players;. IBA does not issue direction to banks and financial services players; IBA at times, as decided by its members, merely facilitates matters of common purpose for its members and even then does not make any decision in such matters.
7. It may be further stated that IBA is not amenable to writs for the reason of IBA not being Government/ Government Department/ Regulator/ Authority/ Instrumentality of State as also judicially held by Hon. Bombay High Court on 6.9.2018 in Writ Petitions 2796 of2005 and 1388 of 2006 (Kishor S. Bhat Vs IBA).
8. As per the above point, IBA is not a competent body to enter into any contact ie. MOU, Bipartite settlement, Joint Note. All the earlier MOUs, 1st to 10th Bipartite Settlements, Joint Notes, are *"VOID AB INITIO*".
9. As per IBA's Affidavit dt. 21.10.2020, IBA is not a statutory, registered body.
IBA should explain the reasons for not registering IBA?
What are the advantages for not registering the firm?
What are the disadvantages, if it is registered?
a) IBA is a fictitious body, unregistered body, not having any legal entity. But how it was titled as *"Indian Banks Association"*
b) IBA is not having Memorandum and Articles of Association, not registered under Societies Act or Cooperative Act. It is not having any certificate of Registration.
c) It can not fulfill the KYC norms. If that is the case how it has opened Bank Account, how it has obtained PAN Card for the purpose of Income Tax PAN number, TIN number.
d) is IBA deducting TDS, if so, is it remitting the TDS amount deducted from the professional service providers like Advocates fees, TDS from Salaries of IBA Staff, Auditors fees, Advertising companies, leading newspapers, etc.,
e) Is IBA submitting Statutory quarterly Returns pertaining to IT Department.
f) Without a certificate of Registration, they can't register with GST (CGST & SGST). They can not obtain TAN & TIN numbers.
g) IBA will be receiving Income from Member Banks, in the form of Professional fee towards Services rendered to the Member Banks and Brokerages received from Health Insurance Companies, which will be in thousands of crores. Income on Advertisement Bills, which includes GST and exclusive of TDS amount. IBA has to submit Quarterly, half yearly, Annual Returns, to claim GST/IT Departments.
h) Is it possible to pay Profession Tax deducted from their Employees, without TAN & TIN number.
10. Is IBA submitting Statutory Returns to various Departments like Quarterly half yearly Annual Audit Reported Balance Sheets or Income & Expenditure statements, Receipts & Payments Statements, Annual Reports, Minutes of the meeting at periodical intervals, etc., to the Registrar of Cooperative Societies Department and Cooperative Audit Department.
11. Bank account can not be opened, without KYC norms. If at all they opened, the Bank account is to be Audited by the Concurrent Auditors, Quarterly Audits and Annual Audits. Such reports are to be submitted to the respective controlling Departments.
12. All the above items are to be verified to ascertain whether IBA is a legal body. If not, all the Bipartite settlements, Joint Notes, MOUs, etc., Stands void ab-intio.
13. There are 234 members with IBA. Only 35 Scheduled Banks (inclusive of PSBs, Foreign Banks Private Banks) are in this Bipartite settlements.
Basing on the Recommendations of Pillai Committee, Service Regulations were formed for Public Sector Banks. It has relevance with Central Pay Commission and Central Pension Regulations.
If foreign Banks don't want to follow these Regulations, then there should be a separate Bipartite settlements/Joint Notes for PSU Banks, Foreign Banks and Private Banks.
14. The Government has started BSRB for recruitment of staff in banks headed by one of the chairmen of PSU Banks. In the same way a separate Banking Pay Commission is to be introduced, headed by one of the Chairmen of PSBs, to formulate, review and revise Salaries & Alliances and Service Regulations of working Employees/Officers and Updation of Pension and Revision of family pension other conditions for the welfare for Retirees of Public Sector Banks especially the group health insurance policy for retirees.
15. *In view of the fraudulent nature of IBA's existence and functioning, we can pray to court to constitute a Special investigation Team (SIT) to probe all aspects of IBA which has been deciding the service conditions of Bankers since it's inception*
Like the above points, there are so many points that can be presented in the courts against IBA.
Ashok Nedunoori.
Date: 25-10-2020.
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EVERY PENSIONER MUST READ THIS MUMBAI HIGH COURT, NAGPUR BENCH LANDMARK JUDGMENT ON PENSION.
_An excellent message to Society. Hats off to the Nagpur Bench of the Mumbai High Court.
*_HIGH COURT OF BOMBAY (NAGPUR BENCH) LD-VC-CW-665 OF 2020_*
*_Date of Reserving the Judgment: 13th August, 2020_*
*_Date of Pronouncing the Judgment: 20th August, 2020_*
*_EXTRACTS OF THEJUDGMENT_*....
*_14. The Bank is a trustee of the account of the pensioners, like the petitioner, and has no authority in the eyes of law to dispute the entitlement of the pension payable to the employees, other than those in the employment of the Bank. To tamper with such account and effect the recovery of pension without any authority, is nothing but a breach of trust of the petitioner by the Bank. We should not be understood to have said that even where there is technical error in calculation, other than of entitlement, is committed resulting in excess payment, the Bank cannot recover it. We have already held that no such case is made out here._*
*_16. Before parting with this Judgment, we need to remind the Bank that the pension payable to the employees upon superannuation is a ‘property’ under Article 300-A of the Constitution of India and it constitutes a fundamental right to livelihood under Article 21 of the Constitution of India. The deprivation, even a part of this amount, cannot be accepted, except in accordance with and authority of law. Article 41 of the Constitution of India in the Part IV of Directive Principles of State Policy has created an obligation upon the State to recognize a right of public assistance in the case of old age, sickness and disablement. Article 46 therein requires the State to promote with special care the economic interests of the weaker sections of the people. In short, the aforesaid provisions of the directive principles of State policy create an obligation upon the State to enact suitable laws, making the provisions to recognize a right of public assistance, to promote economic interests, to protect the life and property of senior citizens, to treat them with respect and dignity and to give wide publicity to it._*
*_17. Unfortunately, the time has come to tell the Bank that the aging is natural process, which leads to weakening of the body and mind. The productivity, working ability and mobility decreases or paralyzes with growing age. The traditional norms, values and culture in the Indian Society demand to treat the senior citizens with respect, dignity and lay stress on providing security, care and assistance to them. It becomes a part of the human right of the senior citizens_*
*_. The senior citizens are the persons who had shouldered the responsibility of building a nation in general and society or community in particular, while in service. Utilizing their experience in the life and working, the strong shoulders are created of young persons to substitute and rest the responsibility upon them, while demitting the office. The bank officials must realize that tomorrow it may be their turn, upon superannuation, to fight for the pension or post-retiral benefits. The thought process,_* *_therefore, to be adopted should be of a person in a situation like the petitioner. The respect, dignity, care, sensitivity,_*
*_assistance and security would automatically follow._*
*_18. We have, however, seen and can take judicial note of the fact that the security of the senior citizens always remain in peril. We have seen the senior citizens anxiously waiting for credit of the pension amount in their account and standing in a queue for withdrawal. Once the amount is withdrawn personally either from the Bank or from the ATM, a serious threat starts posing to the life from the watchdogs roaming around involved in pick-pocketing and stealing. We have actually seen the old aged persons – men and women, counting the currency with cramping hands and trying to secure the amount at some hidden place in the body. It is then after waiting in the premises of the Bank and taking stock of the situation and the atmosphere with scared mind and the feeling of insecurity, the escape route and time is chosen to reach to their destination safely. It is a high time for the Banks to create a separate cell and to device a method to provide personal service through the men of confidence, at the door-step to the old aged, disabled and sick persons who are the senior citizens. They have to be treated with respect and dignity. The sensitivity to the problems of the senior citizens need to be addressed. The mechanism for immediate redressal of grievance needs to be provided. The officers having a degree or master’s degree in Social Work or Psychology, who can be in personal touch with and genuinely understand and redress the grievances or complaints of the senior citizens, can be appointed._*
*_19. In the result, this petition is allowed and the following order is passed :_*
*_(1) The action of therespondent No.3- Bank in deducting an amount of Rs.11,040/- per month with effect from October, 2019 is hereby quashed and set aside._*
*_(2) We direct the respondent No.3- Bank to immediately credit an amount of Rs.3,27,045/-, recovered from the pension account of the petitioner, along with interest at the rate of 18% per annum from the date of recovery of each of the installments, till the date of credit of this amount in the pension account of the petitioner._*
*_(3) The respondent No.3- Bank is restrained from recovering any amount from the pension payable to the petitioner on the basis of the action, which we have quashed and set aside._*
*(4) We direct the respondent No.3- Bank to pay the compensation of Rs.50,000/- to the petitioner and credit the said amount in the pension account of the petitioner within a period of eight days from today, failing which the additional costs of Rs.1,000/- for each day’s delay will have to be paid_*.
*_(5) We direct the Registry of this Court to forward the copies of this Judgment to the Centralized Processing Pension Centres of all the Nationalized Banks and also to the Reserve Bank of India and the Chief Secretary, Government of Maharashtra, to consider the question of constitution of separate cell and release of appropriate guidelines so as to attain the constitutional goal of providing respect, dignity, care, sensitivity, assistance and security to all the pension account holders in banks 🙏
*Friends in Head Office HRM department, be cautious. You are a trustee and not owner of pensioner's money. Come down from ivory tower. Don't deduct without authorisation by the pensioners*☝️☝️☝️
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