Delhi High Court Questions Centre on Controversial Appointment at Union Bank

The Delhi High Court on Thursday called for the Central government’s explanation regarding the contentious appointment of Pankaj Dwivedi as the Executive Director of Union Bank of India. This inquiry follows a public interest litigation (PIL) alleging that Dwivedi’s appointment in March was in violation of mandatory vigilance clearances, particularly due to an outstanding charge sheet against him in a sexual harassment case.

Acting Chief Justice Manmohan, alongside Justice Tushar Rao Gedela, issued notices to the Centre, the Central Vigilance Commission (CVC), and Pankaj Dwivedi himself, demanding a detailed response on how the appointment was sanctioned without the requisite approval from the vigilance authorities. “How can this be? File your response. Big picture will have to be looked into. If a person has been denied vigilance clearance, how can he be (appointed)?” remarked the bench during the proceedings.

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The court emphasized the importance of the vigilance authority’s report, stating that there must be “some sanctity” to its findings and that corrective actions should be implemented promptly. The Centre’s counsel assured the court that necessary remedial measures would be considered if found appropriate.

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According to the petitioner’s counsel, the rules clearly mandate that vigilance clearance is essential for board-level appointments in public sector banks and should not be granted if the individual is charge-sheeted for a case such as sexual harassment. It was argued that despite protests from the petitioner when Dwivedi’s name was initially recommended for the position, he was appointed without the necessary vigilance clearance.

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The petitioner’s lawyer stressed that since the CVC has refused to clear Dwivedi’s appointment, he should not be allowed to continue in his role. “This is an open and shut case. He can’t continue,” he stated.

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