Union Bank of India Under Fire: Rs 7.25 Crore Book Purchase Sparks Controversy
Union Bank of India, a prominent public sector lender, is facing intense scrutiny following the revelation of a Rs 7.25 crore expenditure on 200,000 copies of "India@100," a book authored by former Chief Economic Adviser Krishnamurthy V. Subramanian. This massive purchase, intended for distribution to customers, schools, colleges, and libraries, has ignited a firestorm of criticism, particularly given the timing and surrounding circumstances.
The Controversial Purchase
The bank's decision to purchase such a large quantity of books has raised serious concerns about the allocation of public funds. The sheer cost – Rs 7.25 crore – is staggering, prompting accusations of wasteful expenditure. The order included 189,450 paperback copies at Rs 100 each and 10,422 hardcover copies at Rs 597 each. This purchase was made through the bank's 18 zonal offices, with each assigned a significant number of copies for distribution.
- The Timing: The controversy is further amplified by Mr. Subramanian's recent early departure from the International Monetary Fund (IMF), six months before his term's end. Allegations of impropriety linked to the promotion of his book have added fuel to the fire.
- The IMF's Response: The IMF has clarified that Mr. Subramanian's departure was solely a decision by the Indian government, distancing itself from the controversy.
- Internal Fallout: A general manager at Union Bank of India has been suspended in relation to the book purchase, and an investigation is underway. The All India Bank Employees' Association (AIBEA) has demanded a thorough investigation into this alleged "wasteful expenditure."
The initial payment of 50% of the total amount, even before the public disclosure, has added to the skepticism. The remaining payment was to be made by regional offices under a "miscellaneous" budget heading.
Political Fallout and Public Reaction
The controversy has extended beyond the banking sector, with the Congress party raising serious questions about the government's role and alleging that public funds were misused for political propaganda. The party has pointed to Subramanian's past role as CEA and his close ties to the government, suggesting a potential conflict of interest.
The abrupt termination of Mr. Subramanian’s IMF post has fueled speculation and further intensified the controversy. The lack of transparency surrounding the decision to purchase the books has only deepened public concern.
The stock market has also reacted negatively to the news, with shares of Union Bank of India experiencing a significant drop following the disclosure.
Ongoing Investigations and Uncertain Future
KPMG, a global professional services network, has been appointed to conduct a forensic audit of the transaction. The findings of this audit are yet to be publicly released, but the outcome will be crucial in determining the extent of any wrongdoing and the appropriate consequences.
The future of Union Bank of India’s leadership is also uncertain. The controversy casts a shadow over the bank's reputation and raises significant questions about its corporate governance and financial practices.
Conclusion
The Union Bank of India's purchase of 200,000 copies of "India@100" for Rs 7.25 crore is a significant event with far-reaching consequences. The controversy highlights the importance of transparency and accountability in the management of public funds, particularly within public sector banks. The ongoing investigations will be critical in determining the full extent of the situation and in ensuring that appropriate action is taken. The incident also serves as a stark reminder of the potential risks associated with perceived conflicts of interest and the need for rigorous oversight of such transactions.
