Ref. No. __________ Date: 28.01.2019

By Registered Post
To,
1. Shri M.K. Jain (By name)
The MD -cum- CEO
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

PNSION FUND TRUSTEES:

2. Shri Pradeep Chouhan, GM HRD (Chairman of the Pension Fund Trust),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

3. Shri Jitendra Mohan Singh, (CFO) & (alternate Chairman of the trust),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

4. Shri Swarup Saha, GM (Treasury and IBD),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

5. Shri Jagdish Prasad, Deputy GM (I&C),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

6. Shri Praveen Kumar Sharma, deputy GM (I&C),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

7. Shri Pradeep Kumar, Asst. GM (CS&P),
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

8. Shri. Kanwal Singh, Workman employee
Oriental Bank of Commerce, Head Office,
Institutional Area, Plot No. 5, Sector- 32, Gurgaon

Subject :- Legal Notice.
I , under the instructions of my client Shri M.S. Sidhu hereby Serve you the legal notice on the following terms.

1. That after the order of SLP - 5525/2013 dated 13.02.2018 of the Hon’ble Supreme Court to make payment of arrears on account of wrong calculation of pension to those employees who retired between 01.04.1998 to 31.10.2005, your bank had paid pension arrears to the debit of pension fund. The bank also debited Rs. 3.07 crores to pension fund on account of penal interest @ 9% imposed by the Hon’ble Supreme Court and this penalty was to be borne by the bank by debiting profit & loss account of the bank account and not from pension fund. Hence, by ignoring the relevant Regulations, misappropriation of Rs. 3.07 crores has taken place which is also criminal breach of trust, whereas, as per trust deed and notified pension regulations, only pension and family pension are to be debited in/from the pension fund account. Hence, the offence is a criminal breach of trust as well as misappropriation has taken place under your direct supervision regarding which you have the prior knowledge.

2. That as per RBI directives, when any loan or advance becomes NPA, certain amount of provisions are to be made out of profit of the bank. Whereas, no provision is ever made for any investment in banking sector and no loan or advance can be made from pension fund. By violating the provisions and the RBI Directives, the Oriental Bank of Commerce made investment of Rs. 20 crores in Amtech Auto Industries, which already had loan advances from various banks including Oriental Bank of Commerce. The Amtech Auto has become bankrupt and the investment of Rs. 20 crores have gone bad. The Oriental Bank has made provision of RS. 5 crores for investment of 20 crores. There is no provision for making provisions on investments in RBI manual neither there is any provision in pension regulations to make provisions on investments. The directives of RBI are not applicable on Pension Fund Trust whereas the trustees misappropriated Rs. 5 crore from this pension fund and this act of the bank was well within your knowledge and the Board of Directors along with the other decision makers but intentionally the same was ignored and as a result of misappropriation, breach of trust took place.
3. That the employees of the bank are paid pension at a rate as per regulation 35(2) of Pension Regulations, 1995, in case of an employee’s retiring in accordance with the provisions of service regulations or settlement after completing a qualifying service of not less than 33 years and amount of basic pension salary calculated at 50% of the average emoluments. As per regulation 2(za) services regulation mean Oriental Bank of Commerce.