Why Union Bank wasted Crores of Rupees on Book Purchase? Employees demand investigation
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Mumbai: A big News has come from Union Bank for India. Union Bank has purchased nearly two lakh copies of Book of at a cost of ₹7.25 crore. This book is of Shri K.V. Subramanian, the former Chief Economic Advisor (CEA) to the Government of India and former Executive Director (ED) at the International Monetary Fund (IMF). Recently he has been removed from his service as ED (India) at IMF before completion of tenure. India has Appointed Parameswaran Iyer as Temporary IMF Representative.
The issue is that Rs.7.25 crore public money has been wasted by Union Bank in purchased nearly 2 lac copies of books. This has raised several questions – Why such a huge quantity of single book was purchased and why so much money was spent on a single book. General Manager (GM) of Union Bank has been suspended and investigation is ongoing. This has raised several suspicions about this book purchase. Let’s understand this in detail.
The All India Union Bank Employees’ Association (AIUBEA) has written a letter to Ms. A Manimekhalai, the Managing Director and CEO of Union Bank of India, raising serious concerns over what it calls “wasteful expenditure” by the bank. The union has demanded a full investigation into the purchase of large quantities of the book India@100, which reportedly cost the bank crores of rupees.
Union Bank purchased nearly two lakh copies of Book at a cost of ₹7.25 crore.
The bank’s support services department at its central office wrote to its 18 zonal heads, informing them of the decision by the “top management” to procure and distribute hard cover and paperback versions of the book among customers and corporates pan-India, as well as at local schools, colleges, libraries.
These letters conveyed the decision to purchase 189,450 copies (10,525 copies each by 18 zonal offices) of the paperback at ₹350, and 10,422 copies of the hardcover at ₹597. The order would cumulatively amount to ₹7.25 crore. The zonal offices were instructed to further distribute the copies to the regional offices under them. It’s unclear if other orders for the central office or other establishments were also made.
When the office advice was sent, a 50% advance for this purchase had already been paid to publisher Rupa Publications. The office advice said the remainder of the payment should be made by the respective regional offices through “revenue budget available under ‘miscellaneous’ head.”
When this expenditure item (50% advance to Rupa) was brought for ratification in a December board meeting of the lender, its executive director, Nitesh Ranjan, who oversees marketing and publicity among other portfolios, said he had not been informed about this purchase and declined to ratify the expenditure.
The board questioned the authority of Girija Mishra, the general manager overseeing the support services department, to authorise this payment by himself. Manimekhalai informed the board, according to people aware of developments, that she had asked Mishra to make the purchase, but not to break any rules. About a week later, on December 26 last year, she suspended him.
In January this year, the bank appointed KPMG to identify the lapses in this transaction. The consultant submitted its report by end of the month, although it’s not known what the report said or recommended. It’s also unclear if the bank has taken any further steps, apart from the suspension of the general manager. Employee unions say the general manager was made a scapegoat, and have demanded further investigation.
Background of the Controversy
The issue came into the spotlight after news broke that Shri K.V. Subramanian, the former Chief Economic Advisor (CEA) to the Government of India and current Executive Director (ED) at the International Monetary Fund (IMF), had his tenure cut short. According to media reports, one of the reasons behind this decision was the alleged misuse of his position to promote his book India@100.
Union Bank of India had bought a large number of copies of this book, and now, questions are being raised about whether proper procedures were followed in making such a large-scale purchase. The bank is being linked to the controversy due to its involvement in purchasing the book in bulk, which has led to suspicions of impropriety.
Also Read: Why Krishnamurthy Subramanian Removed from IMF? Know about him and Full Controversy
Union’s Past Concerns
The AIUBEA has said that it has repeatedly raised concerns about the bank spending money unnecessarily. According to the union, Union Bank has used its profits on items that may not be essential, such as:
- Unnecessary installation of CCTV cameras
- Frequent renovations and facelifting of office premises
- Purchase of redundant scanners
- Buying large quantities of books without clear purpose
Despite raising these concerns earlier, the union says the bank has continued with such spending. In fact, this issue was one of the reasons why the union served a strike notice in September 2024.
What Happened During Meetings?
Following the strike notice, the Chief Labour Commissioner (CLC) held three meetings between the bank management and the union. During these talks, the union again raised the issue of the book purchase. The bank, however, claimed that the expenditure was necessary to promote business and had been approved by the “Competent Authority”.
An MoU (Memorandum of Understanding) was signed on December 21, 2024, between the bank and the union, where this issue was officially recorded as point number 14. The bank’s response in the MoU stated that such expenditures are done for regular upkeep and are approved by the concerned authorities.
What the Union is Demanding Now
The AIUBEA says that with the recent news coverage around the book and its author, it has now become even more important for the bank to:
- Disclose who approved the purchase and whether there was any misuse of power or intention to promote the author improperly.
- Explain what benefits the bank gained by spending crores on the book.
- Prove whether all rules and procedures—including those set by the Central Vigilance Commission (CVC)—were followed during the purchase.
- Clear doubts and suspicions about the top management’s involvement, if any, in the matter.
Call for Transparency
The union is asking for complete transparency and has requested that the bank share all relevant information with stakeholders. It says this is necessary not just for accountability, but also to protect the bank’s image and interests.
The letter has also been marked to the Chairman and Board Members of Union Bank, including Executive Directors, and to the Secretary of the Department of Financial Services (DFS), Delhi, for their information and possible action.
