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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