After the Cabinet’s August 24 decision to convert IFCI into a government company, the lending institution has given pink slips to as many as 14 employees in the rank of vice-president/general manager to fresh graduates from top ranking B-schools.
The company, which has faced mass exodus in the last one year, issued notices to 14 of its officers terminating their employment on September 12. The affected employees have taken up the issue with board members of IFCI and the Ministry of Finance. In a letter addressed to the board members, the employees said their employment was terminated arbitrarily without any prior notice and have urged the company to get them reinstated.
Also, a major reshuffle has reportedly happened in IFCI with people being moved from one department to another and those in subsidiaries given an option to come back to the parent company or join on the terms of employment of the subsidiary.
A mail sent to IFCI remained unanswered. IFCI Chairman Atul Kumar Rai, when contacted, declined to offer any comments on the issue of firing the employees without stating a reason.
“All had more than two years of stint. None of them were contract employees… All were governed by IFCI staff regulation. In fact, IFCI staff regulation does not have any room for termination,” said the letter from the employees, also marked to Department of Financial Services Director Sanjeev Kumar Jindal, who is government representative on the board of IFCI.
As market regulator Sebi today allowed the government’s takeover of IFCI, there is a silver lining for the affected people. One of them said the Ministry of Finance has agreed to look into the matter and once the process of acquiring the company was over all the employees might get their job back.
The person said under IFCI staff regulation an employee can be asked to leave only on disciplinary grounds and that too after a proper enquiry. The sacked employees alleged the security guards did not allow them to enter the office premises on September 13 and even their mobile numbers were blocked.
An insider said all departmental heads were asked to suggest name of some people in their team who could be relieved. The person alleged some of the people were being moved to find a “safe haven” for them before the government takes control of the company.
