Central Trade Unions demanded Parliamentary scrutiny of the IDBI Bank disinvestment process on November 1. They also supported a hunger strike by bank employees on November 2 and 3. The unions said, "Public institution of such strategic importance should not be reduced to a saleable asset," while seeking an investigation.
Extend full support to the hunger strike called by the United Forum of IDBI Officers & Employees on November 2nd and 3rd to demand cancellation of the Bank's privatisation process
The Joint Platform of Central Trade Unions has sought an immediate suspension of the IDBI Bank disinvestment process, an independent time-bound investigation into the bidding, valuation and decision-making process, and Parliamentary scrutiny of the transaction.
The Joint Platform of CTUs, comprising 10 trade unions, has extended its full support to the hunger strike called by the United Forum of IDBI Officers & Employees on November 2 and 3 to demand cancellation of the bank's privatisation process.
The Cabinet Committee on Economic Affairs (CCEA), in its meeting held on October 14, approved "10955230 Canada Inc. (parent entity Fairfax Financial Holdings Ltd.) as the strategic buyer of an aggregate 60.72 per cent equity stake (comprising 30.48 per cent equity shareholding held by the government and 30.24 per cent equity shareholding held by LIC) in IDBI Bank.
The Platform, in a statement, alleged that the proposed sale of equity by the Government and LIC is akin to surrendering of public control over an institution built with public investment and decades of national effort.
"IDBI is not just another commercial bank. As a development financial institution, it played a historic role in financing core industries, creating infrastructure, buttressing the foundations of India's financial system. Its legacy belongs to the people of India. Public institution of such strategic importance should not be reduced to a saleable asset," it said.
The CTUs said the the disinvestment process, including any transfer of shares or management control, should be immediately suspended, pending investigation and public scrutiny.
Further, it sought an independent time-bound investigation into the reported irregularities in bidding, valuation and decision-making, with its findings made public
The CTUs have demanded full disclosure of all transaction documents, including valuation reports, revised valuation methodology, relevant departmental notes, the chronology of bids and the reasons recorded for accepting the selected offer
Moreover, there should be a Parliamentary scrutiny of the transaction, its implication for public ownership and the assurances previously given regarding IDBI's character.