Vishwa Alok Chandra ,M.A, LL.B.
Ex-Chief-Manager, Central-Bank of India 11/3 Vikas Nagar
Mail- Chandra.valok@gmail.com. Mob-7990841956 Lucknow-226022
Ref-No2021/05 Jan20,2021
Shri S.A Bobde
Hon’ble Chief-Justice of India
Hon’ble Judges of Supreme-Court of India
Hon’ble Chairman Human Rights Commission
New-Delhi MOST - SERIOUS & URGENT
Respected Sirs,
Reg-(1) Contempt Of Hon’ble Supreme-Court Judgement in Civil appeal No 1123 of 2015 decided on 01/07/2015 -- Non-Revision /Updation of Pension for last 26 years ........Failure of Banks ( ie state in terms of article 12 of Indian constitution ) to discharge contractual obligations .
(2)Approval for payment of Health Insurance Premium for retirees by Bank in terms of - Ministry of Finance , Department of Financial services letter No F .No 14/7/92-IR (Vol-II) Dt 24/02/2012 addressed to Deputy Chief Executive of Indian Banks Association (IBA ) Mumbai.
Ref- 8th Joint note dated 04/01/2021 between Indian Banks Association & officers Associations. .
Hon’ble Supreme-Court in Civil appeal No 1123 of 2015 decided on 01/07/2015 “ The Govt cannot take the plea of financial burden to deny legitimate dues of pensioners.’ But the nexus of Indian Banks association & Unions signed a joint note on 04/01/2021, wherein unions raised the issue ,SL No-2 Non-financial issues , Updation of Pension “ It ...expressed by IBA in the meeting in Dec-18 that impact analysis is required to understand the load ...hence appointment of two actuaries as was done in 2009... Within a defined time frame” IBA, replied “ ....for which an actuary is appointed .”
I am submitting the facts as under in brief
Pension -I
(1 )Pension in Banks was introduced in terms of Section 19 of the Banking Companies (acquisition & transfer of undertaking ) Act 1979 /1980 .Accordingly a joint note was signed between Indian Banks Associations ( IBA) on behalf of management of Banks & Unions on 29th October 1993 for introducing Pension Scheme in the banking industry as second retrial benefit in lieu of contributory provident fund as consideration . The terms of said note was incorporated in the Bank Employees Pension Regulation -1995 & were notified in the official gazette of India by all the nationalised banks on 29 Sept 1995 and by associate Bank of SBI on 26 March 1996.
(2)Unions issued circulars for implementing the scheme by advising / instigating their members to join the scheme in view of its merits to make it successful .Even few unions issued circulars for not joining scheme & several employees did not join the scheme.
(3) Banks made an invitation to offer to their employees to opt for Pension Scheme by issuing circular letter ( scheme was detailed in Pension Regulation -1995 ) & willing employees submitted their acceptance in writing keeping in view the benefits of scheme.
Banks acknowledged their acceptance and issued acceptance letters to individual employee (as in my letter no CO/HRD/TLNBTS/AOP/2010-11/8481 dt 31/01/2011 “We acknowledge the receipt of your option form for pension under the scheme of “Another option for Pension “submitted through Zonal –Office .The same has been found to be in order and your option for pension has been accepted “ signed by Chief-Manager , Terminal Benefits Deptt , Central –Office, Mumbai”)
Thus making a LEGALLY ENFORCEABLE -CONTRACT in terms of section 3,4, 5,8,10,11,14,of INDIAN CONTRACT ACT -1872.
(4)This contract was irrevocable in terms of regulation 4(2) “ The option referred to in sub-regulation (1)and regulation 3,once exercised ,shall be final “ of pension Regulation -1995.Therefore any amendment detrimental to pensioners interest in future is fraud with employees & void ab-initio .
(5) Again a joint note was signed on 27/04/2010 for granting pension to left out employees with additional levy of 2.8 times revised pay for Nov-07 & from retired employees 56% percent of CPF paid at the time of retirement. This levy was arbitrary as it was affecting each employees in a discriminatory manner and in violation of regulation 3 of Pension Regulation 1995 & fundamental rights in terms of article 12,16 &21 of constitution.
(6) Employees complied the terms of contract by surrendering their contributory provident fund but Banks violated terms of contract by not updating the pension as agreed in Section 35(1) & 56 “ In case of doubt in the matter of application of these regulations regard may be had to the corresponding provisions of Central Civil Service Rules -1972 applicable to central govt employees ...” of the act & not making obligatory credits in Pension Trust Fund in terms of section 5(3) “The bank shall be a contributor to the fund & shall ensure that sufficient sums are placed in it to enable the trustees to make due payments to the beneficiaries under these regulations “ & regulation 11 “The bank shall cause an investigation to be made by an actuary into the financial condition of the fund every financial as on 31st day of March, and make such additional annual contribution to the fund as may be required to secure payments of benefits under these regulation ‘
(7) IBA/Banks did not appoint actuary & credited sufficient funds for updation of pension rather some - Banks made unauthorised withdrawals for other purpose abusing Pension Trust Fund amounting to criminal breach of trust & fraud in terms of various sections of Indian Penal Code & Criminal Procedure Code, however it is the internal matter of Banks & pensioners are not concerned and having any control on it .But till now , no executive has been punished for breach of trust.
(8) IBA / Banks instead of fulfilling the gap of Pension Trust Fund by appointing actuaries & crediting required amount in terms of Pension Regulation 11 played a new trick in connivance with unions by coining new term of “Special-Allowance “ in Xth bipartite settlement @10% of basic pay not qualifying for terminal benefits thus damaging the future pension of employees & pension fund permanently .
Perhaps the reason was that unions will not get any subscription or levy on Pension arrear from retirees therefore feeling free to damage retirees interest .
This is a fraud with employees/ pensioners as at the time of offering pension & accepting their offers, this concept was not there & employees surrendered Provident –Fund in good faith in view of then pension benefits as published in Pension Regulation-1995 & this contract was final/irrevocable in terms of regulation 4(2) , therefore any amendment detrimental to pensioners interest is ultra-vires & void ab-inito
(9 Hon’ble Supreme-Court in SLP No 20661-20668/2012 , Canara Bank V Savitri Venugopalan dt 13/02/2018 interpreted “ system of having two pay scales one for purpose of calculating salary and other one for calculation of pension is “ ILLEGAL“ Therefore to show their power in XI th bipartite-settlement , this Special-Allowance was doubled @20% of basic-pay not attracting terminal benefits.
(10) Very few may be knowing the fact that it is only Banking Sector where employees has to pay cost for wage revision amounting to hundreds of cores rupees by way of arrear levy which increases with every delay as an incentive to unions for delayed settlement If wage revision is in time , there will be no arrear & no levy(AISBISF , GS MR Bandlish letter no FED/Gs/2020/99 dt 14/10/2020 &AIBEA GS Mr C.H.Venktachalam letter no 28/254/2020/92 dt 15/11/2020 for 4% levy of arrear amount .)
(11)For a settlement of five years, delay of three years , several benefits are made effective from date of settlement thus injuring members interest Why this long delay takes place while all data is available on computer or IBA is not manned by competent executives or deliberate delay is made to enrich unions fund unduly & get the settlement signed as per the needs of IBA . Wage revision deliberations are never transparent. Members are always kept in dark & one day historical achievement is declared while the fact is that Bank employees servicing conditions are going from bad to worse with every successive wage settlement in comparison to other sectors of society in-spite exorbitant fee is paid to unions by members ie
monthly subscriptions, lump-sum collection at the time of meetings/ conferences , wage –revision arrear levy & deduction of salary in unions strike call. If a rough estimate is made with interest , it will amount not less than Rs5 to 3 lac per member . Unions have handsome funds in their account but every union activity is conducted at Bank’s cost like leave, boarding , lodging , local conveyance etc .Mostly they get freedom from routine work, freedom from rotation /transfer etc.
11/11/2020 was the black day when IBA& Unions agreed for basic pay of a clerk less than peon of a Govt Sector. What is the thought process of IBA , if no talent prefer to join Banking Sector , what is the future of Banking industry .
(12) It is well known fact that during wage revision process first a budget is decided based on paying capacity /profitability of Bank but the fact is never placed on record/before govt of India that that reason of declining profitability is Frauds/Non Performing Assets due to external –pressures / highhandedness of Senior Executives for which employees are not liable .
Lakhs of cores rupees are being written off in Fraud /NPA’s accounts , but banks want to compensate with retirees funds .Mostly culprits are not punished but employees & retirees are being punished in wage revisions & non-credits of due funds in Pension Trust Funds. Concept of Special Allowance was also invented to fulfil the gap by damaging pensions & Pension trust Fund permanently.
(13) Central bank of India, in one of its RTI reply no CO/HRD/RTI/CPIO/2018-19 dt 24/01/2019 has informed.
Type of No of Amt Paid in Average pension per pensioner /
Pensioner Pensioners Dec-18 in lac Family Pensioner
Regular 28332 8425 Rs842500000/28332 =Rs29736.69/
Family 8852 32 Rs3200000/8852 =Rs361.50/
The result is that a General Manager retired in Octo-2002 is getting basic pension of Rs 10650 while a peon retired in Octo-2017 is getting a basic pension of Rs11893/ infringing fundamental rights in terms of article 14, 16 & 21 of Constitution of India.
Part-II-Insurance
(1) Ministry of Finance, DFS in above noted letter dt 24/01/2012“Banks may consider the option of Group Insurance Policies for both serving & retired employees instead of direct payment of benefit from the fund ................Each year the banks may devise the scheme for apportionment of funds with the prior approval of their Board of Directors as per specific need of the Bank “
“It is requested that IBA may take appropriate steps to inform all concerned Banks accordingly “
(2) Govt of India has consented/permitted banks to pay health insurance premium of staff & retirees . But IBA instead of informing to banks immediately, kept it pending for 39 months & devised its own strategy ,violating Govt instructions for the reasons best known to IBA , while IBA claims its status only as a facilitator.
Unions instead of demanding for implementation of Govt –guidelines of payment of premium of retirees by Banks. or rational premium for retirees rather facilitating premium payment by requesting bank management to credit pension on 27/10/2020 so maximum retirees can join the scheme .Unions are showing undue involvement / interest in CONVASSING IBA sponsored scheme among retirees .
Majority / representative status of unions is also in question as no free / fair elections are conducted but only nominations .Union subscription is debited from salary sheet ,if any member dares to leave , he is harassed in multiple ways .The nexus of IBA & unions signs various agreement / settlement without consent of members. Often such settlements are signed keeping aside the Indian law & provision of constitution as if IBA& Unions are extra constitutional –bodies & they are not supposed to work within the ambit of Indian laws & constitution Every now then a cut off is decided in a most unlawful manner depriving employees their fundamental rights u/s 14,16 &21.
Helpless employees/ retirees takes shelter of court but every type of delaying tactics are played with repeated appeals on public cost while employee / retirees spends his hard earned money .Several times retiree has to leave for heavenly abode without getting court –judgement .
Therefore in view of above facts, It is prayed that
(1) Kindly restrain Indian Banks Association & Unions not to meddle in Pension issue of retirees in an unlawful manner. It is a civil contract between employees & individual Bank. Therefore there is no locus-standi of Unions & IBA after giving written letter of acceptance to employees by Bank.
(2)Kindly declare null & void, all amendment done detrimental to retirees interest in an irrevocable contract like Special-Allowance damaging Pension & Pension Fund permanently.
(3)Kindly initiate proceedings of contempt of court against erring Banks who are subjecting pensioners to live miserable life & death in absence of pension updation / revision . . It is culpable homicide amounting to murder u/s 302 of IPC read with section 34 common intention.
(4) Kindly instruct Banks to adhere Ministry of Finance , Deptt Financial services instructions dt 24/02/2012 to pay retirees Health Insurance Premium so retirees can get suitable medical facility .
(5)Kindly institute a high level commission of inquiry by sitting/ retired justice of Hon’ble Supreme-court to investigate into the transactions of Pension Trust Fund to save it from misappropriation in the hands of banks .It consist of Lacs of Cores rupees , a basic source of Pension Payment to retirees .It will reveal if there was/are fraudulent transactions or due credits have not been made, that is why nexus of IBA &unions is making delaying tactics to wait for the death of pensioners/ family pensioner so their provident fund is forfeited & the gap can be filled .
It is further requested to take cognizance of issues as Banks are scattered all over India , approaching different High –Courts may be time consuming & retirees may not be able to take benefit of judicial pronouncements during their life time .
With Kind Regards
Yours Faithfully
Chandra.va
Vishwa Alok Chandra
Encl-Joint note dt 04/01/2021,MOF letter dt 24/01/2012, Unions levy letters
CC-(1) Hon’ble , PM, Minister of Finance ,labour , law & Justice & Social welfare & Empowerment – Sir I have sent good no of letter in last four months but Govt Of India is silent on issue, if any point of disagreement is there , please let me know so I can clarify . Retirees are also citizens of India & needs to be treated fairly .we listen the news of death of retirees on regular basis .Kindly intervene& save the dying humanity .
(2) Hon’ble Chairman/ CEO’s of all nationalised banks –Kindly see the legal aspect of Banks contract with retirees for payment of updated/revised pension in terms of Pension Regulation -1995 . Once the contract with employees is irrevocable. IBA & unions has no role to play. Banks are directly responsible for death of pensioners in absence of pension updation/ revision .
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