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Request to Mr Mittal for Doing Justice to Left Over 2nd Pension Optees -
Courts Decisions Are a Slap on IBA and Banks
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S. Ramachandran Kunal Icon, Building no. A8, Former General Manager Bank of Baroda. Flat no. 104, Pimple Saudagar, Former Chairman & CEO - The Sangli Bank Ltd. Aundh Camp, Pune 411027 (Now merged with ICICI Bank Ltd.) Tel: 020 27201012. Former Administrator Madhavpura Mercantile E-mail id- ramans1938@gmail.com Co-op Bank Ltd (Ahmedabad) Former Director General Maratha Chamber of Commerce Industries & Agriculture, Pune. BY SPEED POST
TO, 31-8-2012 Shri D.K. MITTAL CHIEF SECRETARY, MINISTRY OF FINANCE,GOVT OF INDIA, DEPARTMENT OF FINANCIAL SERVICES, 13, TALKATDA ROAD, NEW DELHI.
Dear SIR,
RE- HIGH-COURTS AFTER HIGH COURTS GIVES FAVOURABLE VIRDICT IN FAVOUR OF VRS OPTEES UNDER OSR 1979 A BIG SLAP ON THE FACE OF IBA AND THE CMDS OF PUBLIC SECTOR BANKS. THE HIGH COURT OF GUJRAT- AHMEDABAD AND HIGH COURT OF KARNATAKA- BANGALORE ON THE ILLEGAL DENIAL OF 2ND PENSION OPTION TO VRS OPTEES UNDER OSR 1979 BY IBA AND THE BANKS
At the outset let me sincerely thank the ministry of finance for their letter dated 25-7-2012 to IBA chairman on the denial of 2nd pension to VRS optees under OSR 1979.directing them to correct the mistake committed by IBA.
However I regret to inform you that in spite of clear cut direction to SHRI MISHRA CHAIRMAN OF IBA BY YOUR DEPARTMENT VIDE LETTER NODO/NO/10/30/7/2010-IR DATED 25-7-2012 directing IBA to issue revised instructions to member banks after withdrawing the words “on superannuation” which were added in IBO circular dated 10-8-2010 after the word retirement to member bank so that VRS optees who were in the services of the bank prior to 29th September 1995and retired thereafter can get the benefit of 2nd pension option ,no action has been taken by the IBA in spite of my reminder to SHRI ALOK MISHRA ,CHAIRMAN IBA on 7th AUGUST,2012 a copy of which has been sent to you.
In this respect I have to inform you that the AHMEDABAD HIGH COURT gave judgment on 14-8-2012 on the writ filed by the Bank OF Baroda Retired Officers Association and some affected VRS optees under OSR 1979 wherein the Hon’ble Judge gave a decision in favour VRS optees and ordered the BANK TO GRANT 2ND PENSION OPTION TO VRS OPTEES and THUS THE BANK OF BARODA, IBA AND GOVT OF INDIA lost the case .
High court of Karnataka, Bangalore has also given favourable verdict in favour of VRS optees on 30-8-2012 on the writ filed by the affected VRS optees under OSR 1979 of Canara Bank
It will not be out of place to draw your kind attention THAT THOUGH SLP WERE ADMITTED BY HON’BLE SUPREME COURT WHICH GRANTED INTERIM STAY of OPERATION OF THE IMPUGNED JUDGEMENT OF THE HIGH COURT OF KARNATAKA,HOWEVER WHEN THE SLPS CAME UP FOR FINAL HEARING ON 4TH APRIL,2000 THE APEX COURT AFTER DETAILED HEARING SPREAD OVER TWO DAYS ,DISMISSED THE SLP FILED BY THE UNION OF INDIA, ,IBA, Syndicate Bank ,Bank of India ,and Union Bank OF India wherein the Hon’ble COURT observed that “ there is no “Difference between those who voluntarily retired and who ordinarily retired” which has been implemented by these banks vide IBA circular no PD/CIR/76/G-2/394 dated 1st June, 2000.
In spite of above and though more than one month have passed still IBA has not acted on the finance ministry direction which shows their disrespect to Govt of India’s direction and negative attitude to act on the right and legally correct direction given by the government of India which clearly amounts to disobeying the government order, which calls for their explanation.
ALL the above THREE directions i.e. one of your ministry 2ND OF AHMEDABAD HIGH COURT AND THIRD OF KARNATAKA HIGH COURT clearly indicates that IBA got a slap on their face still it appears that IBA is not ashamed of, which is evident, from inaction in the matter, which speaks volumes of their gross disrespect to the JUDICIAL VERDICT which is the law of the land and finance ministry directions ( Govt of India DIRECTION) WHICH IS OWNING THE PUBLIC SECTOR BANKS.
In view of this I NOW request you to ASSERT YOU RIGHT AND ORDER DIRECTLY THE CHAIRMAN OF PUBLIC SECTOR BANKS to grant the 2nd pension option as per your departments earlier instructions dated 25-7-2012.
Just as your ministry has advised directly to all the CMDS OF PUBLIC SECTOR BANKS “ Pensionery benefits to whole- time Directors of Nationalised Banks “vide your department circular F. NO. 13/5/2009-BO.1dated 3rd April 2012
IGNORE THE DEFUNCT IBA WHO ARE NOT FUNCTIONING IN THE RIGHT AND LEGALLY CORRECT WAY AND FOLLOWS THE WRONG AND ILLEGAL ADVICE OF ITS MANAGEMENT COMMITTEE MEMBERS AND EMPLOYEES ORGANIZATIONS
Ignore their reference if any made to the government on your direction dated 25-7-2012 giving all tame excuses and trying to justify their illegal and unethical advice in wrongful denial of 2nd pension option to normal VRS OPTEES WHICH IS AGAIN IS THEIR STRATEGY TO DELAY THE SANCTION OF 2ND PENSION OPTION. TO NORMAL VRS OPTEES
Further I feel Government should assert their right and should give directions to the CMD’S of PSB’S TO discontinue the membership of IBA who are paying huge amount towards annual subscription to IBA without any real benefit in any area in the field of banking business This is one of the reasons why finance ministry has rightly entrusted the Human resources matters to Dr Khandelwal committee and many of the suggestions are being implemented by the PSB’s .If you carry out the study of the working of IBA which is dominated by PSB’S ,none of the new generation private sector banks, foreign banks, cooperative banks approach IBA for any guidance, wage revision etc.. Lastly you are aware how IBA has totally messed up the entire matter of pension which has resulted in many court cases filed by VRS optees IN VARIOUS HIGH COURTS.
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To quote in short the mess created by IBA is as under:
1. Though the special VRS optees had the benefit of
(a) Five years advance salary without doing any work which was not extended the same to normal VRS optees under OSR1979
(b) Allowed VRS those who have completed only 15 years of service as against normal VRS optees who had put in 30 years of service
(c) Special VRS optees of 2001 got the 2nd option for pension though they had not opted for early pension option extended in 1995 and the normal VRS optees who had not opted for early pension option extended in 1995 have been denied 2nd pension option though these people were also in service of the bank prior to 29th September,1995 in the case of nationalised banks and retired after that date and prior to the date of the joint note dated 27-4-2010 which is the requirement of the joint note.
(d) Thus IBA discriminated the officers between those who retired under normal VRS and special VRS and illegally helped the special officers by robbing the right of VRS to get 2nd pension option and extended the same to special VRS optees which is totally unethical and illegal and against all cannons of Indian constitution.
(e) THOUGH IT IS NOT SPECIFICALLY / CLEARLY MENTIONED IN THE JOINT NOTE DATED 27-4--2010 TO GRANT 2ND PENSION OPTION TO GMS WHO ARE APPOINTED AS EDS AFTER THE TIME FRAME OF EXERCISING THE FIRST PENSION OPTION IN 1995 WAS OVER AND THOUGH THEY HAVE NOT OPTED FOR FIRST PENSION OPTION STILL.IBA has allowed EDs of PSBS 2ND PENSION OPTION treating them Deemed Retirees which is totally wrong as their deemed retired status was over no sooner the time frame for exercising the first pension option was over in 1995 and as they quit the bank by taking the provident fund and joined another ba . To quote the names of some of the beneficiaries are SHRI M.D.MALLYA PRESENT CMD OF BANK OF BARODA,PREVIOUS CHAIRMAN OF IBA,SHRI ALOK MISHRA CMD OF BANK OF INDIA AND PRESENT CHAIRMAN OF IBA,SHRI K.RAMAKRISHNAN PRESENT CHIEF EXECUTIVE OF IBA.THESE OFFICIALS WHO ARE CLOSELY CONNECTED WITH IBA AS CHAIRMAN,/CEO/MANAGEMENT COMMITTEE MEMBER HAVE THUS ABSUED THEIR POWERS AND POSITION FOR THEIR OWN BENEFIT WHICH IS EVIDENT FROM THE ABOVE.
It clearly shows that the EDs and CMDs can go to any extent of manipulation of the system to get the personal benefits in the form of Pension. If this type of manipulation is to be stopped,, it would be better that Govt sack them as deterrents, so that others would not repeat manipulation.
2. In the joint note no where the definition of retirees is given and also not made a mention of denial of 2nd pension option to VRS optees under OSE 1979, and not made a mention of the words “ on superannuation “ after the word retirement and still they have denied the 2nd pension option to VRS OPTEES UNDER OSR1979 WHICH IS A STATUE. THIS ILLEGAL ACTION OF DENYING THE 2ND PENSION OPTION TOVRS OPTEES UNDER OSR 1979 AMOUNTS TO FRAUD AND MURDER COMMITTED ON THE DEMOCRATIC RIGHTS OF VRS OPTEES BY IBA AND THE RESPECTIVE BANKS.
3.Ministry of finance has also vide their letter no F.NO.15/22/2012-IR dated 14th March,2012 has replied to me under RTI ACT 2005 as “ IBA has confirmed that there was no communication from government to IBA to deny second option of pension to officers who voluntarily retired under Officers’ Service Regulation 1979.”
4. Reserve Bank Of India also vide their letter DBOD/CO/RIA/13849/04/03/00/2011-12 dated 15th March,2012 replied to me under RTI act 2005 as “RBI has not issued any specific instructions to Public Sector Banks to deny one more option to officers voluntarily retired under the first scheme”
5.If the IBA had an understanding with the EMPLOYEES ORGANIZATION who are signatory to the joint note not to grant second pension option to VRS optees under OSR 1979, as pleaded by IBA in the conciliation meeting before the Chief Labour Commissioner ,New Delhi, sometime in July 2012, then how they asked actuaries to take into consideration the cost of 2nd pension option on account of VRS optees also while working out the total cost of 2nd pension option at RS.6381/-CRORES to 337000 employees and why they have not incorporated this understanding in the joint note dated 27-4-2010 ? This clearly indicates that there was no such understanding whatsoever between and the employees organisation and the IBA. Hence this statement of IBA is a afterthought statement, which cannot be accepted and will not be accepted in any court .
6. IBA commits all sorts of frauds and commits all sorts of major financial irregularities in the conduct of their activities which is by and large funded by Public Sector Banks by way annual subscription and still get out of it mainly because they take shelter of not being coming under the ambit of RTI act 2005, as such it is strongly felt that government should not allow Public sector banks to continue as their member
7. Lastly the GOVERNMENT LETTER NO/DO/NO/10/30/7/2010-IR dated 25-7-2012 addressed to Chairman of IBA IS IF SO FACTO A DETERRENTS FROM IBA and CMD OF BANK OF BARODA AND CMD OF CANARA BANK FROM GOING IN THE APPEAL IN SUPREME COURT AGAINST THE ORDER OF THE VARIOUS HIGH COURTS.
8.In spite of the above I REALIABLY UNDERSTAND THAT IBA is contemplating to file SLP IN THE SUPREME COURT .I THEREFORE REQUEST GOVT OF INDIA TO ADVICE THEM THAT LET THE GOOD SENCE PREVAIL UPON IBA NOT TO TAKE ANY CONTEMPLETED ACTION OF FILING SLP IN THE SUPREME COURT KEEPING IN VIEW THE “NATIONAL LITIGATION POLICY”
9. WHAT IS THIS “NATIONAL LITIGATION POLICY”
ITS AIM IS TO TRANSFORM GOVT INTO AN EFFICIENT AND RESPONSIBLE LITIGENT. “RESPONSIBLE LITIGENT MEANS”
1. THAT LITIGATION WILL NOT BE RESORTED FOR THE SAKE OF LITIGATING.
2.THAT FALSE PLEAS AND TECHNICAL POINTS WILL NOT BE TAKEN AND SHALLBE DISCOURAGED.
THIS POLICY IS TO BE FOLLOWED BY ALL THE PUBLIC SECTOR BANKS TOO.
THE POLICY TOOK INTO ACCOUNT THE RESPONSIBILITY OF THE GOVERNMENT TO PROTECT THE RIGHTS OF CITIZENS AND TO RESPECT THE FUNDAMENTAL RIGHTS.
10. FURTHER IT IS FELT THAT GOOD SENCE SHOULD HAVE PREVAILED UPON “THE SO CALLED PROFESSIONAL BODY OF IBA” TO FILE THE GOVT LETTER DATED 25-7-2012 ADDRESSED TO IBA IN THE HIGH COURT OF KARNATAKS WHICH WAS IN THEIR POSSESSION WELL IN TIME I.E.BEFORE THE FINAL ARGUMENTS BY THE ADVOCATE OF IBAIN THE COURT WHICH I UNDERSTAND HE HAS NOT DONE FOR WHICH I FEEL CONTEMPT PETITION CAN BE FILED AGAINST THE IBA
11..FROM THE ABOVE IT CAN BE CONCLUDED THAT All that IBA knows is to file appeal against any high court verdict in supreme court and believes in the delaying the matter and wasting public money by paying huge amount of money to advocates as nobody has so far questioned them on their wrong and illegal decision and fixed any accountability ON THE WASTEFUL EXPENDITURE on the officials of IBA who are running the show. Thanking you,
Yours faithfully,
S.RAMACHANDRAN FORMER GMBOB& VRS OPTEE
Cc TO SHRI MISHRA ,CHAIRMAN IBA FOR INFORMATION AND NECESSARY ACTION.
CC TO SHRI P. CHIDAMBERAM, HON’BLE FINANCE MINISTER,GOVT OF INDIA NEW DELHI. FOR INFORMATION AND NECESSARY DIRECTION TO CHIEF SECRETARY ,DEPARTMENT OF FINANCIAL SERVICES TO DO JUSTICE WITHOUT ANY FURTHER DELAY TO SENIOR CITIZENS C.C. TO M.D.MALLYA, CHAIRMAN AND MANAGING DIRECTOR OF BANK OF BARODA FOR INFORMATION AND NECESSARY ACTION
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