After agreeing to hear petitions challenging the merger of Vijaya Bank and Dena Bank with Bank of Barod Delhi High Court has issued notice to the central government.
The notice has been issued in a batch of petitions filed by All India Bank Officers’ Confederation (AIBOC), the apex organisation of Bank Officers’ having a membership of over 3.2 lakh and the All India Vijaya Bank Officers’ Association, against the proposed amalgamation of Vijaya Bank and Dena Bank with Bank of Baroda and against the scheme of amalgamation published on January 2.
The petitions have challenged the decision making process involved in going ahead with the merger.
According to a statement issued by the AIBOC the decision making process is “vitiated” on grounds that the boards of the respective three banks, which are publicly listed companies, have acted under diktat of the government; there was no prior consultation with RBI, is in evidence, as mandated by Banking Regulation Act and Bank Nationalisation Act