SENIOR CITIZENS SERVICE TRUST Vs. MINISTER FOR FINANCE

JUDGEMENT

(1.) PETITIONER a registered trust, concerned with the welfare of the senior citizens and the depositors of various Public Sector banks, has approached this Court with this public interest litigation. Reference was made to series of articles appeared in 'indian Express' daily dated 6-5-2007 and 26-6-2007 containing serious allegations in the matter of appointment of independent Directors in various Public Sector Banks in the country. Portion of the reports reads as follows :

(2.) PETITIONER submitted that above incidents and various other details pointed out by him in the writ petition indicate that the primary concern of the government while appointing Non-Official Directors is not the interest of the bank/institution but to meet its political interest. Petitioner has also called for few information from the concerned Department under the 'right to Information act, 2005'. Details of which have been furnished in the petition. Reference was also made to the guidelines for selection of part-time Non-Official Director framed by the Government. Petitioner has also stated mat while appointing Non-Official Directors on the Board of Directors of various Public Sector Banks, provisions contained in Sec. 9 (3a) of the Banking Companies (Acquisition and transfer of Undertakings) Act, 1980 (for short 'the Act') were not followed and there was no effective consultation with Reserve Bank of India, Departments of Income Tax, Customs, Central Excise and Enforcement Directorates of the Central Government.

(3.) DETAILED affidavit-in-reply has been filed on behalf of the respondents. It has been stated in Paragraph 10. 3 that for appointment of the part-time Non-Official Director, recommendations are received from various sources including hon'ble Ministers, Hon'ble Members of the Parliament and Hon'ble M. L. As. and Hon'ble M. L. Cs. proposing the names of persons for nomination of part-time Non-Official Director to the Board of various Public Sector Banks. Further, it has been stated additionally with a view to induct professional on the Board of Management of such Public Sector Banks, a panel of names of Economists, management Experts, Chartered Accountants, Lawyers, Academicians, industrialists, etc. are obtained from the organisations like N. C. A. E. R. , I. E. G. , indian Institute of Management, Institution of Chartered Accountant of India, indian Law Institute, reputed Universities, Federation of Indian Chamber of commerce and Industries, C. I. Is. , Assocham and various Chambers of Commerce. It is also stated that on receipts of names from such various quarters, scrutiny of the names received is undertaken and a data Bank of persons are short-listed keeping in mind educational qualifications, professional experience, age. Further, it is also stated that endeavour made to give representation to the Scheduled castes and Scheduled Tribes, minorities and women and also to give every region/ state in the country gets representation on the Board of Directors. It is stated that final list is approved by the Finance Minister after taking into account the views of the Reserve Bank of India and clearances from Departments of Income-tax, Customs, Central Excise and Enforcement Directorates of the Central government. On receiving the clearances from the above-mentioned agencies, the proposals are submitted to the Appointments Committee of the Cabinet (A. C. C.) through the Department of Personnel and Training. Appointments are notified after receipt of A. C. C's. approval and obtaining the requisite declarations from the persons wherever necessary.