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Mumbai: 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.
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.
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.
