Appointment of REPCO Home finance:HC stays further proceedings

The Madras High Court today stayed all further proceedings for appointment to the post of Managing Director to REPCO Home Finance Limited.
Justice K K Sasidharan also ordered notices to the Union Home Ministry, Ministry for Personnel, Public Grievances and Pension and Chairman, REPCO Bank, on a petition filed by A Malaiswamy, a shareholder of the bank.
According to petitioner, the selection of MD and Directors in the board is done by government of India which holds 79 per cent capital in REPCO Bank.
But the selection process for recruitment of the MD was now initiated by K Krishnamurthy, the non-executive part-time Chairman of REPCO Home Finance Limited.

Krishnamurthy has written a letter to Ministry of Home Affairs for appointment of R Varadharajan to the post of MD against whom a complaint is pending with Central Vigilance Commission.
Malaiswamy submitted that the MD of REPCO Bank and REPCO Home Finance Limited is co-terminus as decided by the Ministry of Home Affairs.

The age criteria for recruitment of MD and CEO of all the other banks is fixed as 45 to 55 years and the age of superannuation is 60 years and a Vigilance clearance is required.
But a notification was issued on February 17 this year extending the age limit to 62 years.

He prayed that the notification of recruitment for the post of MD which is extended up to 62 age limit be declared as illegal.
Justice Sasidharan stayed all further proceedings pursuant to the notification and said it should be kept in abeyance with regard to the appointment of MD until further orders.