Norms violated in rehiring retired staffers at Karnal cooperative bank: Probe

The Chief Minister's flying squad unearthed discrepancies in the reappointment of retired employees at Karnal Central Cooperative Bank Ltd (KCCBL) in the city, where retired employees were given employment on contract even after crossing the age of 65, which is allegedly against the rules.

Besides, some retired employees were given reappointment on the medical report of private doctors, instead of medical fitness certificate issued by the Civil Surgeon as prescribed in rules, said the investigation report of the CM flying squad, which has conducted a surprise inspection and reviewed the working of the bank two days ago.

Will look into the matter

We are against the backdoor entry. We will not allow anyone to appoint employees without following laid down rules and regulations. We will look into the matter.

Hukam Singh Bhati, Chairman, HARCO

The inquiry revealed that a total of 78 employees or officers have been reappointed at the bank, including 20 who have crossed the age of 65. Their salaries were determined without adhering to government policies. “The bank has not sought mandatory approval from higher authorities for re-appointing retired employees on a contractual basis, violating guidelines which say the contractual reemployment can be sanctioned with the prior approval of the higher authorities,” said DSP Ajeet Singh, DSP.

“The reappointment of retired employees lacks transparency, with no standardized procedure in place. Many of these employees are assigned crucial roles even heading a branch,” said the DSP.

During inquiry it was also found that one employee was also getting old-age pension in addition to the salary from reemployment. “We have sent the case of verification of his pension to the department concerned and GM has been asked to take undertaking from all the reemployed officials that they are not getting old-age pension while serving here,” he added.

The inquiry also revealed that on October 28, 2024, the Board of Directors approved a proposal to distribute around Rs 97 lakh from the bank's profits as an additional month's salary to employees as a festive bonus. This benefit was also given to over 100 temporary employees hired under the HKRN scheme, raising questions about the criteria of distribution of festive bonus.

The bank's records show that over 900 account holders were found to have non-performing assets (NPA) who owe a total of Rs 16.97 crore in loans.

“I have submitted my report to the higher authorities for further necessary action,” said the DSP Ajeet Singh.

KCCBL Chairman Suresh Kumar said the board of directors passed the agenda, which was kept by the GM, with the consent of all directors. There is a shortage of employees, so reemployment of retired employees is done. “If we pass any agenda, the representative of the Haryana State Co-Operative Apex Bank Ltd, (HARCO) has the power to reject it,” he said. The General Manager Jai Parkash Soni could not be connected despite several efforts.

Hukam Singh Bhati, Chairman, HARCO, Haryana, said no reappointment would be done after the age of 65. “Although, there is a shortage of staff, we will ensure there will be no reappointment after the age of 65. I will get other issues inquired,” said Bhati. He also made it clear that they were against the backdoor entry. “We will not allow anyone to appoint employees through the backdoor,” said Bhati.