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| DB dismisses PIL alleging exorbitant charging of commission by JK Bank | | | Early Times Report
Jammu, Apr 9(JNF): A Division Bench of State High Court Comprising Chief Justice N Paul Vasanthakumar and Justice Dhiraj Singh Thakur dismissed a Public Interest Litigation filed by Balvinder Singh a RTI Activists regarding charging exorbitant commission from State by J&K Bank.
Division Bench further observed that his Public Interest Litigation petition is filed praying for issuance of writ of mandamus directing respondents to disband the mode and practice of depositing of payments under all major Heads of all Public Authorities to avoid giving undue benefit to the J&K Bank by means of commissions, to withdraw all officials/employees of J&K State Government deputed to J&K Bank for collecting remittance of challans of various denominations and to take on itself the receipts and treasury transactions to get rid of payment of commission by adopting the mode of remittance of payment in the particular department itself or in the Government Treasury.
Division Bench further observed that Special Secretary to Government Finance Department, J&K has filed response stating that previously the Government Cashiers borne on the establishment of Accounts and Treasuries Organization had been carrying out Government business in the business units of J&K Bank. However, with the introduction of Ways and Means facility by RBI, the Directorate of Accounts and Treasuries has ordered withdrawal of all the Government Cashiers from the business units of J&K Bank. That no commission is being paid by the State Government to J&K Bank after the introduction of ways and means facility with Reserve Bank of India with the J&K Bank as the Agency Bank of the RBI. Service charges, if any, are being paid by RBI to the J&K Bank. Prior to the switchover to the Ways and Means Agreement, all revenues accruing to the Government of Jammu and Kashmir were being handled by the J&K Bank. The Jammu and Kashmir Bank being a separate entity, negotiated handling charges with the Government of Jammu and Kashmir which was nominally fixed. The Bank was paid such amount for conduct of the treasury business of the Government which was in conformity with the guidelines issued by the Reserve Bank of India (RBI).
That the amount payable to the Jammu and Kashmir Bank for acting as "Agent" of Reserve Bank of India, is not deducted from the Revenues/Receipts of the State Government. The information provided to the petitioner by the Accounts Officer, Directorate of Accounts and Treasuries based on inputs from Treasury Officer, Pattan, is not in accordance with the factual position and as such is misleading. That the statements made, therefore, are misleading and the conclusions drawn are totally false.
It is categorically denied that any loss is caused to the State Exchequer as alleged by the writ petitioner. That it is further informed that the State Government holds majority of Stake in the bank to the extent of 53% and it is only natural that the bank is given preferences over other Banks. In 2013-2014, alone, the J&K Bank paid a dividend of Rs.125.00Crore to the State Government. That the J&K Bank as per the Supplementary Agreement has been appointed as Agency Bank for transaction of the general banking business of the State Governments under Ways and Means Advance (WMA) facility by Reserve Bank of India (RBI) and the State Government is not paying any kind of commission to the Bank."
Division Bench further observed that Sr. AAG also relied upon the Agreement entered into between the Reserve Bank of India and the Government of Jammu and Kashmir on 21st January, 2011 under Section 21A of The Reserve Bank of India Act, 1934 and the same is also forming part of the Counter affidavit and copy was also served to the learned counsel for the PIL petitioner.
Division Bench observed that in the light of the aforesaid stand taken by the State Government which is having 53% stake and in the light of the agreement entered into between RBI and J&K Government based on which the transactions are carried out in J&K Bank, no case is made out to issue any direction and the PIL petition is dismissed. |
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