The All-India Bank Officers’ Association (AIBOA) has asked Finance Minister Nirmala Sitharaman to stop the government’s plan to sell its stake in IDBI Bank.
AIBOA says that many years ago, several land parcels and properties were given to IDBI Bank when it was fully owned and controlled by the Government of India. These lands were taken under the old Land Acquisition Act, 1894, for “public purpose,” meaning they were meant to serve the public because the bank was a government institution.
Now, since the government is planning to sell its stake in IDBI Bank through disinvestment, AIBOA believes this issue should be carefully considered because the land was originally given when the bank was completely government-owned and meant to serve public interests.
Why is AIBOA worried?
AIBOA says that if IDBI Bank becomes privately owned, then the land that was earlier given to it for “public purpose” should be returned to the Government of India. They believe that if the land is not taken back, it could go against the law under which it was originally acquired. AIBOA also points out that the current disinvestment or sale documents do not mention anything about giving this land back to the government. Because of this, they feel that the issue could lead to legal problems in the future.
Earlier, three companies had shown interest in buying the government’s stake in IDBI Bank. But now reports say that only Emirates NBD is eligible to buy the stake. Emirates NBD is largely owned by the Government of Dubai, and its major shareholders include the Investment Corporation of Dubai and Dubai Holding. The All-India Bank Officers’ Association (AIBOA) says that since the possible buyer is mainly foreign government-owned, the Indian government should be extra careful before selling the bank.
