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2015 DIGILAW 151 (JK)

Balvinder Singh v. State of Jammu and Kashmir

2015-04-06

DHIRAJ SINGH THAKUR, N.PAUL VASANTHAKUMAR

body2015
Judgment : N.Paul Vasantha kumar, C.J. 1. This Public Interest Litigation petition is filed praying for issuance of writ of mandamus directing respondents 1 to 5 to disband the mode and practice of depositing of payments under all major Heads of all Public Authorities to avoid giving undue benefit to the J&K Bank by means of commissions, to withdraw all officials/employees of J&K State Government deputed to J&K Bank for collecting remittance of challans of various denominations and to take on itself the receipts and treasury transactions to get rid of payment of commission by adopting the mode of remittance of payment in the particular department itself or in the Government Treasury. Further prayer is that the Central Bureau of Investigation may be directed to initiate inquiry for investigating the huge loss caused to the State Exchequer and to identify those who are responsible as well as beneficiaries out of the decision of giving undue benefit and wrongful gain as stated in the petition. 2. Brief facts as stated in the PIL and affidavit are as under: 3. Petitioner, who is a social activist and the convener of Sangharsh RTI Movement and is a State Coordinator of Association for Democratic Reforms (ADR) for J&K participated in Disaster Management during recent floods in Leh District and unearthed many corrupt practices/scandals like Fire Extinguisher Scandal in Education Department, Appointments made in various Govt. Departments on fake documents etc. 4. The petitioner filed an application under Right to Information Act before respondent No.3 and sought an information with regard to Remittances of amount under only four major heads(M.H) of different Public Authorities, out of approx Five Hundred Major Heads of different public Authorities of J&K Govt. i.e., under M.H-0029(Revenue Deptt), M.H-0202(Deptt of Education), M.H-0210(Health and Medical Education), M.H.0055(Police and Gun Licenses) amounting to remittance of challans under above mentioned five Major Heads(M.H) at the rate of rupees Rs.10/-, Rs.20/-, Rs.30/-, Rs.40/- and Rs.50/-. Information which was asked in the same application was to provide number of total challans remitted under above mentioned M.Hs, total amount collected and total amount paid to J&K Bank as commission for the last Five Financial years( i.e 2008-09, 2009-10, 2010-11, 2011-12, 2012-13). The respondent No.3, after receiving the above said application, provided the information which was full of discrepancies. 5. The respondent No.3, after receiving the above said application, provided the information which was full of discrepancies. 5. Being dissatisfied with the reply made by respondent No.3, the petitioner filed another RTI application on almost with the same subject matter along with the details of each Treasuries/Sub-Treasuries of the State with regard to the above mention Heads and the details of amount remitted for the last five financial years. It was informed to the petitioner that in order to recover the remitted amount deposited in J&K Bank, the State of J&K pays Rs.50/- per challan irrespective of the amount deposited against the Treasury Receipts. After perusing whole of the records available to the petitioner by the respondents, a thorough verification of the information supplied with regards to the only five M.Hs of different public authorities, out of approximately five hundred major heads was calculated by petitioner in the following manner for Jammu Province only: S.No. Amount Total No. Total amt. Total amt. Additional remitted of challans remitted collected in Rs. paid to J&K Bank as commission in Rs. loss to state exchequer in Rs. 1. @Rs.10 1,40,635 14,06,350 70,31,750 56,25,400 2. @Rs.20 3,99,370 79,87,400 1,99,68,500 1,19,81,100 3. @Rs.30 19,641 5,89,230 9,82,050 3,92,820 4. @Rs.40 84,689 33,87,560 42,34,450 8,46,890 5. @Rs.50 1,27,883 63,94,150 63,94,150 Nill Total 7,72,218 1,97,64,690 3,86,10,900 1,88,46,210 6. It is claimed that total loss to the State exchequer is as under: 1. Amount collected from the General Public: Rs.1,97,64,690/-. 2. Additional amount paid as commission to J&K Bank from the State Exchequer to recover the amount from J&K Bank which was collected from the public: 1,88,46,210/-. 3. Total loss to the State Exchequer: Rs.3,86,10,900/-. 7. It is further stated in the PIL that only four M.Hs of different Public Authorities of Jammu Region only out of more than 500 major heads of different public authorities during the last five financial years expose loss of Rs.3,86,10,900/- to the State Exchequer. 8. 3. Total loss to the State Exchequer: Rs.3,86,10,900/-. 7. It is further stated in the PIL that only four M.Hs of different Public Authorities of Jammu Region only out of more than 500 major heads of different public authorities during the last five financial years expose loss of Rs.3,86,10,900/- to the State Exchequer. 8. The above official respondents, in order to commit the above stated mischief of loss to State Exchequer, hatched a conspiracy and entered into an agreement with J&K Bank for wrongful loss to the State of J&K, issued some SROs/Notification/Orders/Direction to all public authorities that whatever amount the Public authorities has to charge under different modes from the general public, it should be remitted in J&K Bank through various treasuries knowingly that for every small challan amounting to Rs.10/- and above under various heads, the Govt has to pay huge amount as commission. For e.g for recovering one challan of Rs.10/- the State Govt pays Rs.50/- as commission thereby giving wrongful gain to the J&K Bank and wrongful loss to the State Exchequer for reason best known to the Respondents. 9. State has made mandatory for all the applicants who wish to apply for various posts under different categories to attach a treasury receipt of Rs.10/- along with the application form. The example of one such case is under M.H-0210 wherein at least 80,000 applicants throughout the State of J&K applied and deposited Rs.10/- per applicant in J&K bank but to recover the same from the J&K Bank, the State Govt. has paid around Rs.40/- lac to the J&K Bank. The above said action by the respondents is the deliberate and intentional act to give undue benefit to a particular private financial company i.e J&K Bank and its share holders. The petitioner claimed Memorandum of understanding between State of J&K and J&K Bank on the above said issue but the official respondents every time refused to provide the copy of MoU. The intentions of the State Govt. can be gathered from the fact that it has not even invited expression of interest from various scheduled commercial banks which are eligible to for undertaking State Govt. Banking/Treasury Businesses. 10. The intentions of the State Govt. can be gathered from the fact that it has not even invited expression of interest from various scheduled commercial banks which are eligible to for undertaking State Govt. Banking/Treasury Businesses. 10. It is also stated in the PIL that respondent Nos.1-5 have deputed their own official staff/employees to all the branches of J&K attached with the J&K State Treasuries all over the State of J&K and in Delhi and Mumbai also for collecting remittance challans. The treasury transactions with the J&K Bank are being done by the officials/employees provided by the State Govt and are being paid by the State Govt even in-spite of the fact that all transactions were carried over by the staff of State Govt, but unnecessary commissions were being paid to the J&K Bank for no work being done by it. Instead of deputing/providing staff to the J&K Bank, these treasury officials can remit the challan while sitting in the concern office/department or any employee/cashier of the concern department or office can make numerous entries under one head in one challan and thereby can save the huge exchequer of State Govt. 11. In reply to the said prayers, Special Secretary to Government Finance Department, J&K has filed response stating as follows: i. That previously the Government Cashiers borne on the establishment of Accounts and Treasuries Organization had been carrying out Government business in the business units of J&K Bank. However, with the introduction of Ways and Means facility by RBI, the Directorate of Accounts and Treasuries has ordered withdrawal of all the Government Cashiers from the business units of J&K Bank. ii. That no commission is being paid by the State Government to J&K Bank after the introduction of ways and means facility with Reserve Bank of India with the J&K Bank as the Agency Bank of the RBI. Service charges, if any, are being paid by RBI to the J&K Bank. Prior to the switchover to the Ways and Means Agreement, all revenues accruing to the Government of Jammu and Kashmir were being handled by the J&K Bank. The Jammu and Kashmir Bank being a separate entity, negotiated handling charges with the Government of Jammu and Kashmir which was nominally fixed. Prior to the switchover to the Ways and Means Agreement, all revenues accruing to the Government of Jammu and Kashmir were being handled by the J&K Bank. The Jammu and Kashmir Bank being a separate entity, negotiated handling charges with the Government of Jammu and Kashmir which was nominally fixed. The Bank was paid such amount for conduct of the treasury business of the Government which was in conformity with the guidelines issued by the Reserve Bank of India (RBI). iii. That the Government of Jammu and Kashmir entered into as separate Agreement with the Reserve Bank of India ( RBI) wherein entire receipts of the Government of Jammu and Kashmir were to be handled by Reserve Bank of India. The Reserve Bank of India pursuant to the provision of Reserve Bank of India Act and Notifications thereof issued by the Central Government appointed the Jammu and Kashmir Bank as an “Agent” of the Reserve Bank of India. The Reserve Bank of India was entitled to entrust General Banking Business” of the Central Government and the State Government to the Bank subject to the provisions of the agreement, which is as annexed as (Annexure A), and the directions as may be issued by the Reserve Bank of India (RBI) from time to time. The Reserve Bank in its discretion is entitled to consider making of payment to the Jammu and Kashmir Bank for acting as its “Agent”. iv. That the Jammu and Kashmir Bank does not receive any commission or any payment from Government of Jammu and Kashmir after the operation of Ways and Means Advance (WMA) Agreement amount fixed and determined by the Reserve Bank of India (RBI) is applicable throughout India wherever any bank acts as an “Agent” of the Reserve Bank of India (RBI). The amount fixed is paid by Reserve Bank of India from its own revenues. The amount is not deducted from the revenues of the State Government. It is, therefore, categorically denied that “State of Jammu and Kashmir pays Rs.50/- per Challan” to Jammu and Kashmir Bank, after adoption of Ways and Means Advance (WMA) regime. It is reiterated that any amount collected by the Jammu and Kashmir Bank as an “Agent” of Reserve Bank of India on account of State Government receipts is remitted to the Reserve Bank of India and the said amount becomes available to the State Government without any deductions. It is reiterated that any amount collected by the Jammu and Kashmir Bank as an “Agent” of Reserve Bank of India on account of State Government receipts is remitted to the Reserve Bank of India and the said amount becomes available to the State Government without any deductions. v. That the amount payable to the Jammu and Kashmir Bank for acting as “Agent” of Reserve Bank of India, is not deducted from the Revenues/Receipts of the State Government. The information provided to the petitioner by the Accounts Officer, Directorate of Accounts and Treasuries based on inputs from Treasury Officer, Pattan, is not in accordance with the factual position and as such is misleading. vi. That the statements made, therefore, are misleading and the conclusions drawn are totally false. It is categorically denied that any loss is caused to the State Exchequer as alleged by the writ petitioner. vii. That it is further informed that the State Government holds majority of Stake in the bank to the extent of 53% and it is only natural that the bank is given preferences over other Banks. In 2013-2014, alone, the J&K Bank paid a dividend of Rs.125.00Crore to the State Government. viii. That the J&K Bank as per the Supplementary Agreement has been appointed as Agency Bank for transaction of the general banking business of the State Governments under Ways and Means Advance (WMA) facility by Reserve Bank of India (RBI) and the State Government is not paying any kind of commission to the Bank.” 12. Learned Sr. AAG also relied upon the Agreement entered into between the Reserve Bank of India and the Government of Jammu and Kashmir on 21st January, 2011 under Section 21A of The Reserve Bank of India Act, 1934 and the same is also forming part of the Counter affidavit and copy was also served to the learned counsel for the PIL petitioner. 13. In the light of the aforesaid stand taken by the State Government which is having 53% stake and in the light of the agreement entered into between RBI and J&K Government based on which the transactions are carried out in J&K Bank, no case is made out to issue any direction and the PIL petition is dismissed.