GIVING a new twist
to the appointment of public sector banks' chiefs, the Supreme Court
on May 5 sought responses from the Centre and the Reserve Bank of
India on a public interest litigation (PIL) challenging the
appointment process of heads of five public sector banks.
A bench of
justices AR Dave and RK Agrawal issued notices to the department of...
financial services and the RBI and sought their replies by May 11 on
the plea contending that the cut-off age for eligibility was
"unjustly, irrationally and unilaterally" reduced. This
was, argued the PIL, against the advice and view of Appointment
Committee of Cabinet (ACC).
The PIL was filed
by former president of All India Bank Officers Confederation KD Kheda
and it challenges the February 26 advertisement for appointment of
CEOs and MDs of Bank of India, Bank of Baroda, Canara Bank, Punjab
National Bank and IDBI Bank.
Quoting provisions
of Banking Companies Acquisition and Transfer of Undertakings Act
1980, the PIL argues that only whole-time directors of public sector
banks, whose names are cleared by the Central Vigilance Commission,
can be appointed to head public sector banks.
The eligibility
criteria for the posts of CEO and MD of the five banks have been set
"with a sole objective to make all existing executives directors
of Public Sector Banks ineligible", says the PIL.
"Executive
Directors of PSB, who were the only persons eligible under old
policy, will automatically become ineligible solely on account of
cut-off age of 55 years with three years Board experience, which is
purposely and malfidely reduced in the case of appointment of MD &
CMD only for these five large PSB (public sector bank)," the
petition said.
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