Tuesday, March 20, 2018

Arbitrary Extension of service and illegal reappointment of T.K.Panda, MD, OSCB


Arbitrary Extension of service and illegal reappointment of T.K.Panda, Managing Director of Odisha State Co-operative Bank violating ‘Fit and Proper Criteria’ prescribed by RBI for CEOs of State Cooperative Banks.

Dear friends

Since last several years,  Odisha has witnessed  severe unemployment  crisis  with lakhs of  educated  youths  battling to get job  in Govt. or private institutions  to live with dignity. While  unemployment  is on rise, the State Govt.  has been  extending  services  of  retired officers/ employees  and also  giving  reappointment of retired employees  in different posts.

The glaring  case is  continuous illegal extension of service of Tusar Kanti Panda, Managing Director of  Odisha State Co-operative Bank  by  the administration flouting  all  norms and regulations. In 2013, Sri Panda   who  was about to retire  at age of 58  on 31.10.2013 , got succeeded  in manipulating the administrative procedure  to get extension of service for two years  w.e.f. 1.11.2013    taking plea of an unauthorised resolution of the Management of OSCB dt.6.05.2009 to enhance the superannuation age of employees of OSCB from 58 years to 60 years violating the statutory order No.21098 dt.1.10.2010 of RCS (O) which prohibited extension of service of employees of Cooperative Societies after their retirement age of 58 years.

In 2014, he again  succeeded  to get another extension of  two years of  his service  as MD of OSCB  upto 62 years  on 21.08.2014 from 1.11.2015 to 31.10.2017. It is learnt  from  information obtained under RTI that his extension of service  was granted  following  recommendation of Professor and HOD of Computer Science Deptt of IIT Kharagpur (Who was a member of the high value controversial CBS procurement committee as consultant of ODCB) on the pretext that second line officers of OSCB are not capable to move forward the CBS computerization project of OSCB successfully overlooking the statutory ban order for extension of service imposed by RCS mentioned above. The CBS software implementation is a big disaster in Cooperative Banks due to defective CBS software procured from v-soft.

It was observed  from the file noting ( File No. COOP-CRI-MISC-0001-2017)  that in 2017, the Co-operation Dept.  again moved a proposal  for  granting extension of service of Sri Panda  for another one year  w.e.f. 1.11.2017 following a resolution taken by the Management  Committee  of OSCB & proposal  of Registrar, Cooperative Society  placed  at incoming  No. 8785/COOP/2017. But  the extension  of  term of  Sri T.K.Panda  was restricted  to six months  from 15.11.17 to 20.4.2018  by Chief Secretary and Chief Minister. It was also instructed  that  within this period, his successor should be identified  by the Cooperation Department.  It would  avoid any disturbance  in the procurement operations.

On 6.3.2018, the State Govt. has  constituted  a Search Committee  headed by Chief Secretary  to find out a person   for the post of  Managing Director, OSCB.  It deserves to be  mentioned here that  the RBI  has prescribed the following  “ Fit and Proper Criteria” for appointment of  CEOs  in State Cooperative  Banks.

i)      For entry level  eligibility to be  relaxed  to 62 years
ii)   For superannuation, the  upper age limit  to be fixed  at 70 years. . However,  the age of  superannuation may  be decided  by RCS   of the respective states after taking into consideration  the recommendations , if any  of the Board  of directors of the Co-opeartive Banks.

 But  astonishingly,  deviating from  RBI norm, the State  Govt.  has    gone to  the extent of  arbitrarily   taking   an additional criteria  of  age relaxation for the existing employees  of the Scheduled  Co-operative Banks.   This  eligibility criteria  has been taken up very cunningly  by the Govt.  with the sole intention of appointing  Sri Panda again through backdoor means. It is very interesting to note that the qualification for the post of MD, OSCB stipulated in the screening committee notification of Cooperation Department dated 6.3.2018 is as per the old ‘fit and proper’ criteria prescribed by RBI dt.18.6.2008, whereas, the qualification stipulated in the advertisement for said post of  issued by Cooperation Department on 7.3.2018 is different and is as per the revised ‘Fit and Proper’ criteria prescribed by RBI dt.3.3.2009 and 5.7.2011.

It deserves  to mention here that during his tenure Sri Panda had allowed around 60 number of high salaried employees of OSCB to illegally continue in service beyond their retirement age of 58 years up to 60 years without approval of Registrar of Cooperative Societies basing on the unauthorised resolution of the Management of OSCB dt.6.05.2009 to enhance the superannuation age of employees of OSCB from 58 years to 60 years violating the statutory order No.21098 dt.1.10.2010 of RCS (O). 

He had also illegally twice revised salary of employees of OSCB at par with RBI in collusion with the employees and Board members without statutory approval of Registrar of Cooperative Societies twice during his tenure over looking provisions of Orissa Cooperative Societies Act, 1962 and disbursed huge amount of arrear salary when the Bank was being bailed out by Government of Orissa from being closed by pumping of huge share capital of Rs 54 Crore to enhanced it’s Capital base  (CRAR 9%) to meet RBI norms since it’s share capital had substantially eroded due to the non-recoverable (loss category NPA) loan of Rs 48 Crore granted to Bijayananda Cooperative Sugar Mills during his tenure and apart from other NPA loans. As per law the entire unauthorised expenditure made for extension of service and  illegal revision of salary of staff without approval of Registrar is recoverable from him. He has successfully thwarted the inquiries conducted on the above matter by putting pressure on the concerned officials.

Though ex-Minister Cooperation had ordered for inquiry u/s 65 of OCS Act, 1962 and vigilance inquiry against him, he had been successful to keep on hold the above inquiries against him for his lobby with some top bureaucrats who are proving him undue protection.

Apart from Kerala in Himachal Pradesh, IAS officers are still posted as Managing Director of State Cooperative Bank despite implementation of Vaidyanathan Committee Recommendation  (VCR) for posting of professionals in State and District Cooperative Banks complying "fit and proper criteria" prescribed by RBI. Currently one Ram Kumar Goutam from Himachal Administrative Service is posted as Managing Director of HPSCB wef 9.1.2018 after Gopal Sharma IAS who was MD of HPSCB from 9.5.16 to 9.1.18. All along IAS are posted in HPSCB for transparent administration and better coordination with District Administrations. But it is hard to understand why in Odisha, a tainted person having several allegations of serious financial irregularities, vigilance cases is given repeated illegal extension of service and some top bureaucrats are again hatching conspiracy to reappoint the said incumbent by hook or crook through back door means up to 70 years taking plea of age enhancement  guideline of NABARD dated 17.1.2018 though he has already crossed 62 years.


Pradip Pradhan
M-9937843482
Date- 20.3.18

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