‘Employees appointed under CSR, golf courses built’
Chief Secretary B.V.R. Subrahmanyam said that the action against Jammu and Kashmir Bank was done on the recommendation of Reserve Bank of India (RBI) which pointed to the lack of governance in the running of financial institution.
Addressing a press conference alongside the Governor, Subrahmanyam said that the bank had appointed several employees and spent money on golf courses on the name of corporate social responsibility (CSR).
“RBI gave us a letter that they were extremely concerned about the governance issues of JK bank. These issues have been pending despite repeated appraisals by the RBI. So, we were forced to remove the chairman of the bank,” he said.
Subrahmanyam said in one of the cases, the bank spent Rs 50 crore on a golf course “where less than 1,000 people come and play.”
“Tell me out of 80 lakh account holders in the bank, how many of them play golf,” he asked. He said the bank was surviving on the government money and subsidies.
“A bank is not an employment agency. It’s fundamentally a bank and a custodian of people’s money. Its primary responsibility is to take care of the money. It’s not a charity institution,” he said.
He said the ACB raids on the bank were related to old complaints of irregularities and not recent selections.
He said the government has constituted the “best search committee to suggest good people as CMD of the bank, which is a shining glory of the State.”
“We are roping in some of the best ex-governors, who will choose the best for the post. It’s important that the bank should regain its glory,” Subrahmanyam said.
Subrahmanyam said the RTI and CVC guidelines for the bank would also be implemented.
“Under RBI guidelines, post of chairman and director will also be separated. Director will be in credit committee while chairman will be in audit committee,” he said.
Subrahmanyam said around six fact-finding committees in different areas, such as sports, technical education, sports council, macadamisation, dredging and Jammu And Kashmir Projects Construction Corporation Limited had been set up “to act against the corrupt elements through the amended powers granted ACB.