Public sector banks now safe, stable & healthy: Sitharaman

Public sector banks now safe, stable & healthy: Sitharaman 

Lok Sabha Passes Crucial Amendments To Banking Laws 

TIMES NEWS NETWORK 04.12.2024

New Delhi : Finance minister Nirmala Sitharaman on Tuesday said public sector banks are now safe, stable, healthy, and showing “exceptional” performance, as the Lok Sabha passed crucial amendments to banking laws, which among other things provides for up to four nominees in all bank accounts. The move is meant to ensure that successors of an account-holder or someone with a fixed deposit are not locked out as is often the case. Depositors can opt for either simultaneous nomination, where nominees are assigned specific percentage shares, or successive nomination, where nominees inherit in a predefined order. In addition, the Banking Laws (Amendment) Bill, 2024, also seeks to redefine “substantial interest” for directorships, which could increase to ₹2 crore instead of the current limit of ₹5 lakh.

Among the 19 amendments is the plan to transfer unclaimed dividends, shares, and bond interests to the Investor Education and Protection Fund (IEPF) for easier reclaim by rightful owners. “The proposed amendments will strengthen governance in the banking sector and enhance customer conve nience with respect to nomination and protection of investors,” Sitharaman said while moving the bill. Responding to the debate on the bill, she said the number of branches of scheduled commercial bank has increased to 1.6 lakh, at the end of S ept, compared to under 1.2 lakh in March 2014, with 3,792 branches added since Sept 2023. The bill also invited crit icism from opposition members. Samajwadi Party’s Rajeev Rai brought up the plight of borrowers facing credit issues due to poor communication from banks, while DMK’s Rani Srikumar questioned the  transparency of banking fees. Congress MP Karti Chidambaram spoke against the bill for not living up to the govt’s promise of “majestic reforms”. 

Patra’s remarks on Indira Gandhi trigger war of words in Lok Sabha 

New Delhi : BJP MP Sambit Patra’s remarks on former prime minister Indira Gandhi during the discussion on Banking Law (Amendment) Bill 2024 triggered a war of words between the treasury bench and opposition in the Lok Sabha, prompting the Speaker to urge the members to not digress from the topic. Participating in the debate on the Bill, Patra, recalling the Nagarwala scandal, said, “On May 24, 1971, Indira Gandhi called SBI’s Parliament Street branch manager and asked to release ₹60 lakhs immediately. A committee was set up that didn’t give any clearance to her. This is an iconic ‘phone banking example’.” DMK leader A Raja stood to raise his objection to the mention of the incident, saying it is a violation of Rule 94.

Notice to bank after employee held for ₹3cr fixed deposit theft

Notice to bank after employee held for ₹3cr fixed deposit theft

Is There No Accountability Of Any Bank When Money Siphoned Off: HC

Rosy.Sequeira@timesofindia.com 04.12.2024

Mumbai : Bombay high court on Tuesday issued a notice to HDFC Bank and banking regulator Reserve Bank of India (RBI) after it was informed that police had arrested an employee of the bank who allegedly siphoned off ₹3 crore from a customer’s fixed deposits. “Ultimately, people trust a particular bank ... A relationship manager takes a person for a ride. What faith now will people... a person have in the banking system?” asked Justices Revati Mohite-Dere and Prithviraj Chavan. 

The petition by Meenakshi Kapuria, 53, stated that her relationship manager, Payal Kothari, 27, broke her ₹3 crore worth of FDs and transferred the amount to fictitious accounts and from there into her own accounts. She received no SMS or email alerts. On Mon day, her advocate Rizwan Siddiquee said Kothari gained Kapuria’s trust and took blank signed cheques from her, assuring the money would be transferred to mutual funds, gold bonds, new fund offers, among others, earning her more than FDs. He said Versova police are putting pressure on Kapuria to settle the matter with Kothari. Prosecutor Kranti Hiwrale said police froze Kothari’s bank accounts, which had ₹30,000 in all.

The judges directed zonal DCP Dikshit Gedam to remain present. On Tuesday, Hiwrale said Kothari was arrested “this morning”. “Why does an arrest have to be made only when a complainant comes to the court? And you’re (police) asking parties to settle the matter?” asked Justice Mohite-Dere. Gedam said one more person could be arrested immediately. He said the investigation is transferred from PI Amol Dhole to senior PI Gajanan Pawar. Asked about action against Dhole, Gedam said a departmental enquiry will be initiated against him for  dereliction of duty. 

The judges questioned why Kapuria didn’t receive alerts. Gedam said Kothari changed her mobile number and email address in the bank’s records, “and that is why when the transaction was happening, the victim was not getting any kind of alerts”. The judges said, “This is extremely serious.” They enquired if the police did an investigation with the bank. Justice Mohite-Dere asked, “Is there no accountability of any bank when money is siphoned off under their nose?” Considering the manner in which the petitioner was cheated,” the judges directed HDFC Bank’s senior manager of Lokhandwala branch or regional manager in charge of Mumbai to be impleaded as well as RBI. Posting the next matter on Dec 13, the judges said they also want to also know the amount in Kapuria’s account before and after the Oct 30 FIR was lodged.

Supreme Court chides govt for denying pension to wife of soldier who died on LoC

Supreme Court chides govt for denying pension to wife of soldier who died on LoC

AmitAnand.Choudhary@timesofindia.com 04.12.2024

New Delhi : A soldier, who was part of ‘Operation Rakshak’ and deployed near LoC in Jammu and Kashmir lost his life in extreme climactic conditions, while discharging his duty in the wee hours of a chilly January morning in 2013 but his widow was denied Liberalised Family Pension (LFP) despite getting order in her favour from armed forces tribunal in 2019 as the Centre moved Supreme Court and the litigation went on for five more years. 

Rejecting the plea of the Centre and defence ministry and ordering them to grant her LFP, apex court on Tuesday took strong exception of the govt for not taking a sympathetic view and dragging the widow in court for protracted legal proceedings to deny her rightful and imposed a cost of ₹50,000 to be given to her. LPF is given in case of death of an armed forces personnel under certain circumstances and eligible family is entitled to pension equal to reckonable emoluments last drawn.

 The govt denied LFP on the ground that it was a case of ‘physical casualty’ and not ‘battle casualty’ where LPF is granted to the family. After examining all the records and rules, a bench of Justices Abhay S Oka and Augustine George Masih said the govt had wrongly denied her the pension as death happened as a result of war-like situations and it comes within the ambit of ‘Battle Casualties’. “Thus, the death can be attributed to illness caused by extreme climatic conditions. Hence, as per clause 1 (g) of Appendix ‘A’ of the Army Order 1 of 2003, the case will fall in ‘Battle Casualties’. The reason is that the deceased was operating near LoC in extreme cli matic conditions. He was part of Operation Rakshak and was on duty near LC. The casualty caused by illness due to climatic conditions is covered by clause 1 (g). In this case, the respondent’s husband was a victim of illness caused by extreme climatic conditions. Therefore, the case of the deceased will fall in the category of ‘Battle Casualties’, the bench said.. “In our view, the respondent ought not to have been dragged to this Court, and the decisionmaking authority of the appellants ought to have been sympathetic to the widow of a deceased soldier who died in harness.

Therefore, we propose to impose costs quantified as ₹50,000/-, which will be payable to the respondent,”. the bench said.

 87-year-old widow wins 58-year battle for pension dues Chandigarh:

Anguri Devi’s husband Nater Pal Singh of Rajput Regiment died in a landmine explosion on the western front during the 1965 war with Pakistan. Her battle for a long-overdue recognition of her husband’s sacrifice began soon after — and continued for 58 years, reports Ajay Sura. Though initially granted a special family pension, she was excluded from subsequent policy benefits, including the liberalised allowance introduced in 1972 and a 2001 amendment enhancing financial support for families of operational casualties. Restrictive cut-off dates and administrative lapses compounded her struggle. After nearly six decades of perseverance, the 87- year-old war widow finally received her rightful pension benefits — thanks to a landmark decision by the Punjab and Haryana high court. HC judgment, made available Monday, marks a bittersweet victory for Anguri Devi and serves as a powerful reminder of systemic delays in implementing policies meant to honour India’s war heroes and their families.

TN forms panel to revise block grant to 10 state univs

TN forms panel to revise block grant to 10 state univs

Ragu.Raman@timesofindia.com 04.12.2024

Chennai : In a first step to revive financially struggling state universities, the state higher education department formed a seven-member committee to revise block grant to 10 state universities, including the University of Madras and Madurai Kamaraj University. Block grant is the funding from the state govt to all state universities to cover the salary of the sanctioned posts by the govt. Many state universities are struggling to pay salaries and pensions to their staff and retired staff members due to insufficient funds. 

The committee, headed by secretary (expenditure), will include the commissioner of technical education, commissioner of collegiate education, additional secretary (finance), deputy secretary (universities) of the higher education department, director-general of audit or his representative, and member-secretary of Tamil Nadu State Council for Higher Education as members. The committee was given three months to determine the revision of block grants from 2025-26. “They will consider staff strength (teaching, non-teaching) sanctioned by govt, income and expenditure trend analysis, net deficit, scale of pay recommended by state pay commission and University Grants Commission and norms on faculty-students ratio,” a govt order issued by higher education secretary K Gopal said. 

“Though govt is not obliged to fund for salary or pension of the university suggesting a framework for sustenance of the universities,” the order added. The committee constituted by the State Planning Commission to evaluate the financial position of state universities recommended revising the block grant once in five years for all state universities. The block grant was previously revised in 2015-16. “The state universities are burdened by pension liabilities. The corpus fund of the University of Madras is not even able to cover 50% of pension liabilities. Other universities like Madurai Kamaraj University are also facing the same problem,” said P Duraisamy, former vice-chancellor of Madras University. “This move may help to resolve the financial crisis to some extent. 

However, they have to form a committee to resolve financial issues of state universities and suggest alternative ways for generating revenue,” he added. The order also asked all registrars of state universities to submit the details for fixing the block grant. State govt is not giving block grant to Anna University and Tamil Nadu Teacher Education University citing surplus revenue. Professors from Anna University said the university’s revenue declined following the decision to give all pass to students who had arrears. “The university used to generate ₹400 crore by conducting arrear exams. Without compensating for the revenue loss, the state govt declared all pass during 2020. We will also meet the fate of other universities if state govt does not give block grants,” said a professor of the university .

Crackdown on fake embassy certs in NRI quota med admissions

Crackdown on fake embassy certs in NRI quota med admissions

 PushpaNarayan@timesofindia.com 04.12.2024

Chennai : Touts have been actively working to forge embassy and consulate certificates for undergraduate and postgraduate students applying under the NRI quota, Tamil Nadu health minister Ma Subramanian said here on Monday. The health department has filed a complaint with Chennai city police commissioner A Arun seeking an investigation and action against the candidates who submitted fraudulent certificates. Up to 15% of the seats in self-financing medical colleges and private medical universities are set aside for the NRI quota. These seats are reserved for students with NRI/ OCI/PIO status. To apply under this category, students must provide documents that show their parents or relatives (one of the eight categories, such as sibling, grandparent, uncle or aunt) are living abroad. 

A week ago, the medical selection committee discovered that eight MBBS aspirants had forged embassy certificates. Among these, four candidates were allotted seats in self-financing colleges. Additionally, 47 doctors submitted fake embassy certificates with their applications for various postgraduate courses under the NRI quota. “The candidacies of all these doctors were cancelled. Legal action will be initiated against them,” he said. At least half a dozen embassies/consulates of countries, including those of the US, Dubai, Singapore, Australia and Kuwait, replied to confirm the “ingenuity” of the certificates submitted by these candidates. “Producing a fake certificate is a punishable offence. An investigation is under way by the police to find out who prepared and issued the certificate,” he said.

Officials in the selection committee confirmed that they received fake certificates from doctors in 2023. “At least 20 doctors were made ineligible in 2023. We did not allow them to take part in counselling but did not file a police complaint,” said a senior official. Parents and counsellors said touts and agencies were calling candidates offering fake certifications for “a fee” up to ₹1 lakh. “My brother refused to encourage touts. But they told us  how many candidates have been successfully allotted seats in self-financing medical colleges and deemed universities. Everything happens over phone calls,” said R Murali, whose nephew is awaiting a postgraduate seat.

Student counsellor Manickavel Arumugam said the state could have stopped the practice if they had initiated action against students earlier. Legal experts suggest filing cases with the medical council for doctors who forged the certificates. “It is an ethical violation, and doctors can be debarred from practice,” said former TN State Medical Council president Dr K Senthil. 

HC stay on NRI quota forgery case stalls MBBS seat cancellation

Chennai : One of the four MBBS candidates, whose admission was cancelled for forging an NRI certificate from the embassies/consulate, got a stay from the Madras High Court, said health minister Ma Subramanian. While admission to three seats in two self-financing colleges was done during the stray round, the state is working to get the stay vacated, he said. An official in the selection committee said if the seat is vacated, they have to seek permission from the National Medical Commission and the courts to admit a candidate to this vacant seat, as the deadline for admission to the undergraduate medical council is over

Courts need not interfere in transfers of govt staff: HC

Courts need not interfere in transfers of govt staff: HC 

TIMES NEWS NETWORK 04.12.2024

Chennai : The power of transfer vests with the competent authorities of the govt department concerned and courts need not interfere when it is exercised in the public interest, the Madras high court has said. “Importantly, courts cannot run or interfere with public administration in a routine manner,” a division bench of Justice S M Subramaniam and Justice M Jothiraman said. A writ against a transfer can be entertained only if such a transfer order is issued by an incompetent authority having no jurisdiction or if allegations of mala fides are raised, the court said. 

“Routine administrative transfer would not provide cause for an employee to institute a petition before the courts. Post or place can never be the choice of an employee,” the judges said. Transfer guidelines are concessions and cannot be construed as a right. Such guidelines are meant to regulate transfers and postings but would not fall under the purview of service conditions. Thus, it is unenforceable before the court of law, the bench added. The court made the obser vations while rejecting a plea moved by Achutha Gomathi, a member of the Indian Army engineering team, seeking direction to the Army to consider her request to be posted in a place near Chennai. “No doubt every family may have one or other difficulty in one way or another. However, such personal grievances of the employees may be considered by the competent authority and certainly not by the courts,” the court said.

Tearful adieu to medical students killed in road accident

Tearful adieu to medical students killed in road accident

Health Minister Veena George and others paying tributes to five first-year MBBS students when their bodies were kept on the Alappuzha Government Medical College campus on Tuesday. SURESH ALLEPPEY

Sam Paul A.ALAPPUZHA  04.12.2024 

A sombre atmosphere enveloped the Alappuzha Government Medical College campus on Tuesday as the bodies of five first-year MBBS students, who lost their lives in a road accident, were brought to the central library building.

The building corridor, bustling with activity until Monday, was filled with grieving family members, friends, teachers, and members of the public who gathered to mourn the loss and pay their last respects.

Devanandan from Kottakkal in Malappuram, Sreedeep Valsan from Shekharipuram in Palakkad, Ayush Shaji from Kavalam in Alappuzha, Muhammed Ibrahim P.P. from Andrott island in Lakshadweep, and Muhammed Abdul Jabbar from Muttom in Kannur were killed when the car they were travelling in veered onto the other lane and collided with a Kerala State Road Transport Corporation (KSRTC) bus coming from opposite direction at Kalarcode in Alappuzha around 9.30 p.m. on Monday.

Six injured

Six other students—Anand Manu, Krishadev, Alvin, Muhsin, Gouri Shankar and Shane—who were in the car sustained injuries, with the first three remaining in critical condition. The students were heading for Alappuzha in a rented car to watch a movie.

Following the post-mortem examinations, the bodies were brought to the library building before noon. Family members and friends, many in shock and disbelief, were overcome with emotion, finding it difficult to control their tears.

“We have only been together for about two months, but we became like family. I cannot believe this has happened,” said a distraught first-year student.

Ibrahim, one of the victims, had recently secured admission to the medical college by cracking the NEET-UG exam on his first attempt.

“We are all shocked. He was supposed to become the backbone of his family, but fate had other plans,” said a family friend. The bodies were later transported to the victims’ native places. Ibrahim’s body was buried at a mosque graveyard in Ernakulam.

The crash site was less than 10 km from the medical college campus.

The Motor Vehicles department attributed the accident to reckless driving by the student behind the wheel of the car. “Gouri Shankar who drove the car (who was also injured in the accident) obtained his driving licence less than six months ago. He was inexperienced. The car lacked an anti-lock braking system. When he applied the brakes, the vehicle skidded on the wet road and rammed the bus,” said A.K. Dilu, Regional Transport Officer, Alappuzha.

Mr. Dilu said the seven-seater car was carrying 11 people.

“The students had taken the car from an unauthorised rent-a-car facility. We have identified the owner of the facility and summoned him for questioning,” Mr. Dilu said, adding that steps would be initiated to suspend the driving licence of Gouri Shankar.

Governor Arif Mohammed Khan, Health Minister Veena George, Fisheries Minister Saji Cherian, Agriculture Minister P. Prasad and others paid their last respects.

Chief Minister Pinarayi Vijayan, in a statement in Thiruvananthapuram, said the deaths of the medical students had deeply saddened Kerala. Leader of the Opposition V.D. Satheesan expressed his condolences.

Case against driver

Meanwhile, the police have registered a First Information Report (FIR) naming the KSRTC driver as an accused.

However, officials clarified that the FIR was registered based on preliminary information and it could be changed based on CCTV footage and witness statements.