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
<div class="MsoNormal" sty