Pay structure of Vallabh Bank challenged

An advocate has challenged salary given to the employees of an Anand based co-operative bank on grounds that it is considerably high.

The criminal complaint has been filed by Hitesh Patel in the Anand civil court against the chairman of the Vallabh Vidyanagar Commercial Co-operative Bank Ltd (VVCCB), at Vallabh Vidyanagar in Anand.

Interestingly, Patel is objecting to Rs 84,65, 816 shown as expenses on salary in the VVCCB balance sheet for 2003-04. The average salary per employee according to the annual report of the bank is Rs 21,000.

The bank has about 32 employees and the bank manager was withdrawing Rs 56,000 per month. Patel has prayed to issue an order for reducing the salary of VVCCB employees.

Patel has submitted that the bank is overpaying its employees and causing loss to its depositors. The matter came into the limelight after the fast-track court in Anand recently ordered to hold an inquiry again in about five years old complaint filed by Patel.

The original complaint was filed about five years ago but following the negligence by the local civil court, Patel had approached the fast-track court.

Meanwhile, CB Kotecha, district registrar of co-operatives for Anand has submitted a proposal to the state registrar of co-operatives to direct the bank to rationalise the salary by reducing by 40 per cent.

"The state registrar should order the bank to accept the recommendations made by Kotecha. The proposal will save Rs 33,86,326 of the small depositors every year. The regulatory body concerned should take the interest in the matter to maintain the feasibility of the bank operations," said Patel.

"A peon of the VVCCB is drawing more salary than the district registrar of co-operatives," claimed he.

However, Kotecha said, "It is up to the board of directors of the bank to decide the pay structure and no regulator can take any action against the bank authorities. I have submitted my suggestions to my higher ups and now it is up to the bank directors to decide new pay structure. Moreover, the VVCCB directors have fair records with profit to prove their point."

Meanwhile, the local civil court is continuing its inquiry in the case. Navin Patel, chairman, VVCCB, was not reachable for his comments.