Calls purchase “wasteful expenditure”; seeks disclosure of benefits, compliance with norms
Mumbai: The All India Union Bank Employees Association (AIUBEA) has written to Union Bank of India’s Managing Director and CEO A. Manimekhalai, demanding a full-fledged investigation into the bank’s “wasteful expenditure” on the bulk purchase of the book India@100, authored by former Chief Economic Adviser (CEA) K.V. Subramanian.
The union’s demand comes in the wake of media reports citing the premature termination of Subramanian’s tenure as Executive Director representing India at the International Monetary Fund (IMF), allegedly due to improprieties involving the promotion of his book.
In the letter addressed to Manimekhalai and copied to the Chairman of the bank, Board members, and the Department of Financial Services (DFS), AIUBEA General Secretary N. Shankar alleged that the bank spent “crores of rupees” to purchase large quantities of India@100, thereby getting involved in the “alleged impropriety.”
The union has questioned whether proper procedures, including adherence to Central Vigilance Commission (CVC) guidelines, were followed in approving the bulk purchase. “The bank must disclose whether the proper procedure for purchase of books involving huge expenditure was followed… to dispel many apprehensions & suspicions surrounding the top management,” Shankar wrote.
AIUBEA said it had earlier flagged this expenditure—along with concerns about other spending, such as frequent office renovations and redundant hardware purchases—during bilateral discussions with the management following a strike notice served in September 2024. These discussions led to a Memorandum of Understanding (MoU) signed on December 21, 2024, a copy of which was also submitted to the Chief Labour Commissioner (Central) in Delhi.
Clause 14 of the MoU, cited by the union in its letter, shows that the bank defended such spending as necessary and approved by the competent authority. The union contends that in light of recent developments, the bank must now re-evaluate the legitimacy and purpose of such approvals.
“It has become the responsibility of the bank to ascertain how far the authority who has approved the expenditure for purchase of books has colluded in promoting the alleged impropriety,” the letter said.
AIUBEA has demanded that the bank make public the benefits, if any, that accrued from the book’s purchase and distribution and take action to safeguard the institution’s credibility.
Union Bank of India response
Union Bank of India has responded to allegations raised by staff unions regarding irregularities in a recent procurement process, clarifying that while the procurement was made, certain lapses occurred and are currently under internal review. The bank emphasized that the issue does not meet the criteria for a material event as outlined in Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and has no material impact on its operations or financials at this stage.
In a statement, the bank refuted claims that undisclosed information related to the procurement could influence the trading of its securities, asserting that all relevant details have been transparently communicated. Union Bank further clarified that no regulatory or legal proceedings have arisen from the matter, and disclosure under Regulation 30 is not required. Dismissing the significance of the allegations, the bank reiterated its commitment to adhering to all regulatory requirements and assured stakeholders that it will make appropriate disclosures if any reportable event occurs in accordance with SEBI regulations.