It is learnt that Solicitor General Tushar Mehta had appeared for the government and had pleaded with the court to adjourn the case
Sources point out that the government might have wanted more time so that it can prepare alternative platform of BBB, the head hunting agency of the government to select the top management of PSU banks and insurers
New Delhi;
The Delhi High Court(Delhi HC) on Thursday once again adjourned the “Singh Vs Government of India” case over the appointment of CMD of United India Insurance (UII) involving Banks Board Bureau(BBB), to July 11.
It is learnt that Solicitor General Tushar Mehta, government’s top most law officer, had appeared for the government and had pleaded with the court to adjourn the case
Sources point out that the fact that SG has appeared for the case shows the government has taken the matter seriously and the government might have wanted more time so that it can prepare alternative platform of BBB, the head hunting agency of the government to select the top management of PSU banks and insurers.
In November 2021, Inderjeet Singh, general manger, New India Assurance(NIA), had gone to Delhi HC on the issue of appointment of Satyajit Tripathy (who is currently CMD, United India Insurance (UII)) by the government on the basis of recommendation of the BBB, the head hunting agency of the government to select the top management of PSU insurance companies and banks.
The outcome of the case, which have been now adjourned many times, can raise the issue of validity of appointments of existing CMDs of PSU general insurance companies along with chairman and four managing directors of Life Insurance Corporation(LIC) who were selected by the BBB.
Earlier, while deciding another case involving a general manger of a PSU general insurance company, Delhi HC had struck down the BBB’s power to select directors of PSU general insurance companies and the government has already implemented the verdict by cancelling all the appointments of then serving directors who were selected by the BBB.
Meanwhile, NIA, the listed and country’s largest general insurer, doesn’t have a regular CMD for almost last three months after Atul Sahai retired from the post in February end as the government at the moment can’t use BBB to complete the selection exercise nor it has any other platform ready to do it.
With Delhi High Court case dragging on along with the fact that the government is also taking a long time to devise an alternative selection platform, it has created disappointment among many senior officials of the PSU general insurance industry, who would have been in the race for the top job in NIA and are now nearing their retirement.
To be shortlisted as a candidate for the CMD of any PSU general insurer, a general manager must have served two years in the post and needs to have two years of residual services when the vacancy of post has occurred.
Malaya Poddar, CMD, Agriculture Insurance Company, is retiring in June end.
Some of the senior officials who are now eligible to be shortlisted for the post of NIA CMD and AIC CMD are- N Ramaswamy, GM, GIC Re, (retiring in 30th Sept, 2025), Neerja Kapur, GM, NIA(30th Apr,2024),Girija Subramanian, GM,GIC Re, (31 July,2026), G Sunderaman,GM, UII, (30th April, 2024), Rashmi Ranjan Singh,,CEO, HITPA, (28th Feb, 2025).