Unions are against state edu department circular making it mandatory for all teaching and non-teaching staff to shift their accounts to Mumbai District Central Co-operative Bank for receiving salaries henceforth
The teachers' union has contended in court that the Mumbai District Central Co-operative Bank is not in the list of banks approved by RBI
Nearly 27,000 teachers (primary and secondary) and non-teaching staff across Mumbai won't be getting their July salaries on August 1. Most city schools haven't submitted the mandatory monthly staff salary bill to the education department, usually sent by the 14th of every month, after which salaries are deposited. Reason: teachers and their unions are against a department circular that insists they transfer their existing salary accounts from the respective nationalised banks to the Mumbai District Central Co-operative Bank.
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The Teachers' Democratic Front (TDF) has moved a writ petition in the Bombay High Court, and the matter will come up for hearing on August 7.
Why this bank, ask teachers
Advocate Rajeshwar Panchal, representing TDF, said, "On July 24, when our petition came up for hearing, the co-operative bank moved an application stating it should be made party to the case; its request was accepted. The court has given it two weeks to submit its say."
"Our contention is that the state, vide a resolution passed on August 29, 2005, lay down norms stating salaries of government employees should be only with given names of 14 nationalised banks, approved by the RBI... But Mumbai District Central Co-operative Bank is neither a nationalised bank nor is it in the list of banks approved by the RBI," he added.
TDF president Janardan Jangle told mid-day, "It is not unknown that co-operative banks in Maharashtra have been denuded of financial capacity over rampant corruption in the matter of lending of loans without securing the recovery thereof, besides there being political interference with leaders being members of these banks. The Mumbai district co-op bank has suffered a similar fate."
"The fact that an FIR has been registered by the EOW, Mumbai, in the fake loans scam, involving R714 crore of the co-op bank, and that too on the basis of a complaint by a BJP worker, is also relevant," Jangle added.
Uncooperative co-operatives
There's tremendous pressure on principals of city schools to adhere to education department's order, or be ready to "face the consequences". Fearing action, around 1,000 employees have transferred their accounts to the co-operative bank.
Principal of NBWS school, Ghatkopar, Ashok Kumar, confirmed to mid-day of the salary bill not being sent on July 14. "Our teachers aren't keen to have accounts with a co-op bank. We are satisfied with the services given by our nationalised bank — our salaries get deposited on the 1st of every month, unlike earlier, when we had accounts with a co-op bank, which never processed our dues on time," he said.
Jangle said, "Isn't it fishy that the department is pushing only teachers from Mumbai district to get accounts with the Mumbai district co-operative bank? Why isn't this rule across the state? We suspect it's being done to enhance co-op banks' economic status, as it would fetch them deposits worth Rs 4-5 crore a month in teachers' salaries."
Despite attempts, advocate Pandey Manas, representing Mumbai district co-operative bank, and state education minister Vinod Tawde remained unavailable for comment.
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