The Delhi High Court on Tuesday agreed to hear petitions challenging the proposed merger of Vijaya Bank and Dena Bank with Bank of Baroda and issued a notice to the central government. The case will be next heard on February 13.
The petition, moved by All India Bank Officers Confederation and All India Vijaya Bank Officers’ Association, alleges that the government approved the said merger without consulting the Reserve Bank of India (RBI), and without participation of officers of these banks.
“Section 9 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970, lays down the procedure by which the central government, after consultation from the RBI, may establish a scheme of amalgamating commercial banks. However, in the instant case, the proposal was sent to the boards of the banks when no such scheme had been established,” the petitioner said in their plea before the high court. The two bankers’ association have also accused the government of not following the due procedure and their own board of directors of having acted under the “diktat” of Centre.