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India Bank Spends 5 Lakh, 9 Yrs To Deny 9 Lakh For Voluntary Retirement Scheme

Jan 1, 2010
Bank spends 5L, 9 yrs to deny 9L VRS

CUnnikrishnan TNN

Mumbai: The Central Bank of India spent Rs 5.33 lakh in a 10-year legal battle to avoid paying Rs 9.5 lakh as retirement benefit to an employee on the grounds that she died two days before they cleared her name for the voluntary retirement scheme (VRS).
But both the Bombay high court and the Supreme Court have ruled Homai Darayas Postwala — an officer in the investment department — was entitled to the benefits.
Postwala, who served the for 30 years, died on June 23, 2001. The bank argued that as it accepted her in the VRS retirement scheme on June 25, two days after her death, her heirs were not entitled to the benefits of the scheme.
Eight years later, the HC ruled that as the bank had failed to provide the family any record or notification of her acceptance (or rejection) under the scheme, “it would have to be held that the application was accepted when she (Postwala) was alive”. When her husband and son filed an RTI application in June 2011, they learnt the bank had spent nearly half the amount due to Postwala. They have now moved the Bombay high court to enhance her pension from Rs 4,700 to Rs 6,700 per month after the SC accepted her rights under VRS.
Postwala had applied for the bank’s VRS scheme on February 22, 2001 — the day it was announced. The bank did not include her in the first list, but her name appeared on the second on June 30, 2001.
Rajneesh Madhok
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