Tuesday, 26 October 2021

Vigilance Week observance in LIC of India - Let's walk hand in hand!

 Dear friends, 

     L.I.C of India is as usual, celebrating the Vigilance Week from 26th October to 1st November. Again. an ad has appeared in the esteemed Times of India, with the headline "Hand in hand. Let us take a stand." 

     The preliminary body copy of the ad is filled with its usual rhetoric!

     We, request anyone who has read that ad to peruse the blog-post as carried below, to know the extent of the Corporation's malpractices as far as we resigning ex-employees are concerned. To the Corporation, we are persona non-grata!

      Today, we also take a pledge to steadfastly and vigorously pursue our case regarding illegal repudiation of our hard-earned back wages; i.e. arrears and other dues; till its logical conclusion.

      We will walk hand in hand and take a stand that L.I.C of India MUST pay all our dues immediately. We hope and pray that the Government of India supports our stand and proactively helps us in realizing all our hard-earned money with interest at the earliest. Even the prospective investors in L.I.C of India's prospective I.P.O., newly appointed law firms and statutory auditors must stress on the Managing Board of Directors to pay up; clear this long-outstanding, (unaccounted for) liability running into several crores of rupees since August, 1997 (more than two decades!) and clear the Balance Sheet of the Corporation.

     The readers are requested to peruse my earlier blog-post dated 24th January, 2021, concerning the estimate of wage revision arrears repudiated unconstitutionally, unethically and remorselessly by our ex-employer - Life Insurance Corporation of India.  

Our trust in our ex-employer L.I.C, has been betrayed, not empowered, by none other than L.I.C! So obviously, we take its rhetoric with a large pinch of salt.

                                    We finally urge L.I.C of India to walk the talk! ASAP.

The long-suffering, resigning, ex-employees of L.I.C of India!

SATYAMEVA JAYATE!    

                                                         ************************

  Blog-post dated 28th October, 2020

Dear friends,

If anyone really deserves the award for hypocrisy, it has to be LIC of India! Its advertisement in The Times of India states proudly - Vigilant India. Prosperous India. The four things listed here are corruption, criminality, dishonesty and fraud.

I would like to draw the attention of the readers of this blog to the following facts brought out due to my RTI appeal for information from LIC of India:

LIC of India does not have information to about 18 questions asked me out of my 21 questions posed to it, Even the three answered by them were incomplete and incorrect.

*LIC of India stated that the decision to repudiate arrears payment to us ex-employees who resigned before completion of 20 years of service, was taken by the Government of India.

This decision is actually taken by the Managing Board of Directors of the Corporation and the Government of India only ratifies it. (Of course, erroneously as it goes against the Supreme Court's judgment on this issue!)
I brought this fact to the notice of the Information Commissioner who agreed.
LIC of India is an autonomous body that takes its own decisions and reports them to the Government of India.

*LIC of India said that it doesn't have all the information that I asked for as the information is spread all over its offices and that I should approach each and every of the more than 2000 offices of the Corporation for my answers! Even the Information Commissioner sympathized with it and asked me to file separate appeals. 

I informed the Information Commissioner that LIC of India has all the details asked for me in its central server. It just doesn't want to divulge the information, hence is making this excuse of not having the requisite information at one place.

The height of making a false statement by the Corporation was that it didn't need these records as asked by me for its regular functioning and getting it and providing it to me would stress its resources! The Information Commissioner supported LIC's incorrect stand.

If the Corporation can ask me as an individual with meager resources; to make more than 2000 appeals and file court cases to get my dues, why can't it with so much man power at its disposal and as mandated by the RTI Act do the needful? Besides, it is lying through its teeth that it doesn't have the information. 
I will have to take 2000 and more rebirths to get answers from LIC of India to get all my answers at the rate at which LIC responds! 
It took 22 emails from me and later, an email that I would be sending a lawyer's notice that made LIC give a terse reply at last that I wouldn't be paid as per rules! 

Which rules was it talking about? The fraudulent Clause 3 1B that even the Supreme Court had long ago in 2007 struck down as ultra vires!

LIC of India has not accounted for the repudiated arrears' sums running into several crores of rupees in its Books of Accounts! What could be more fraudulent, dishonest, criminal and corrupt than this act?
If it had accounted for it, it would have divulged the information regarding number of employees who have been denied the payments and the total amounts repudiated till date from 1st August 1997.

The CPIO (Western Zonal Office) called me up from the Zonal Office's landline number and intimidated me and mockingly said that I wouldn't get any answers from LIC of India. I quote him "Asking for answers from LIC of India is like breaking your head against a brick wall. LIC will not answer any of your questions as it doesn't want to open Pandora's Box! You can file a case against the Corporation but even if you file a court case against LIC of India, you will lose the case. This RTI appeal of yours will be closed in a month!" 

He even asked me why I had asked the Information Commissioner to impose a penalty on him and LIC of India for not answering my queries within the stipulated time, as mandated by the RTI Act.

To say that his reprehensible statements were presumptuous and shocking, would be an understatement.

To add insult to injury, when I appraised the IC at the hearing about his remarks, he brazenly asked me "Have I ever spoken to you?" to which I immediately retorted, "You are lying".

The IC then asked him to be transparent in his dealings in future.

I wonder how the officials in the Managing Board of Directors of LIC of India even get sound sleep at night, after defrauding scores of resigning ex-employees of their hard-earned dues like arrears arising due to wage revision, difference in Statutory Retirement benefits like Provident Fund and Gratuity; despite the Supreme Court's verdict favoring such employees, in several cases? No prick of conscience?

Ironically, they will even take an oath of acting ethically, in their dealings as office-bearers of the Corporation, during the currently ongoing Vigilance Week! And keep including the illegal Clause in the Wage Revision Charter, every time that it is published; stipulating that such arrears are to be repudiated. By the way, this Clause was included in the 2010 and 2016 Wage Revision Charters, even after the 2007 judgement of the Supreme Court! And even approved by the Government of India!

A clear case of 'Contempt of Court'.

The Supreme court has ruled in its 2007 judgment that this offending Clause is "Ultra Vires" i.e. beyond the reach of power, of the Chairman of LIC of India.

May we persuade these officials to look up the dictionary for the equivalent of 'ethics'?
Even walk the talk? But probably that is too tall an order!

However, rest assured dear friends, the truth will ultimately prevail. We will definitely get our dues in the near future. Didn't India win her freedom after decades, nay, a century of struggle? Even if none of us is around, our descendants will reap the benefits of our crusade against LIC's injustice.

Satyameva Jayate!

Priya


Thursday, 16 September 2021

Some pertinent questions for L.I.C of India's learned lawyers

 Here are some pertinent questions that L.I.C of India's learned lawyers and the Directors on the  Managing Board of Directors of L.I.C of India must answer:


1. Do you have any conscience?

2. What would you have done if anyone had unjustly deprived you of your legally rightful dues?

3. If your children leave jobs and take up employment with new employers, will you call them deserters and humiliate them?

4. If your children are deprived of their arrears' payments by their ex-employers what would be your reaction? 

5. Would you not fight for justice for them?

6. What is your concept of loyalty? Is it just having a herd mentality, complacence, warming of seats and not even opting for a change in seat and table, department, posting to any other office of the Corporation, technical exams or promotions?

7. Have you ever introspected on why employees resign from the service of L.I.C of India?

8. Do you even read the judgments of the Supreme Court of India, pertaining to cases involving L.I.C of India and its sister concerns?

9. Do you care for the Constitution or the Constitutional rights of your employees and ex-employees?

10. Do you get sound sleep at night?

11. How will you ever face God?


Even if you don't answer these 'uncomfortable' questions publicly, please do so in private! 

It will be an excellent exercise in soul-searching.

Maybe you would transform into better individuals. 

After all, miracles do happen!

We sincerely wish you all the best.


Questions put forth by:

The long-suffering, resigning ex-employees of L.I.C of India.


Wednesday, 15 September 2021

 Source : https://indiankanoon.org/doc/118495839/

Madras High Court
R.Ramesh vs The Government Of India on 22 April, 2014
   IN THE HIGH COURT OF JUDICATURE AT MADRAS

CAV  ON  07/01/2013 

DATED:   22/04/2014

CORAM

THE HONOURABLE MR.JUSTICE C.S.KARNAN

W.P.No.2861 of 2002

1.R.Ramesh
2.S.Sridaran
3.S.Lal Bhagadur					     ...	Petitioners

vs.


1.The Government of India,
   rep.by Joint Secretary,
   Ministry of Finance,
   Department of Economic Affairs
   Insurance Division,
   New Delhi.

2.The Regional Manager (E & OS),
   Life Insurance Corporation of India,
   Southern Zonal Office,
   102, Anna Salai, Madras-2.

3.The Chairman,
    Life Insurance Corporation of India
    Central Office,
   Yogakshema, Jeeban Bhima Marg,
   Mumbai-400 021.					...  	 Respondents

PRAYER: Writ Petition filed under Article 226 of the Constitution of India for a Writ of Certiorarified Mandamus to call for the records of the first respondent in his notification No.Nil, dated 22.06.2000, and quash the same as illegal, incompetent, ultra vires and unconstitutional in sofar as it denies the benefits of revised pay scales to employees, who have resigned or relieved from service between 01.07.1997 to 22.06.2000 and further direct the respondents to pay the arrears of pay under the above notification for the work extracted by respondents with interest at 24% till payment to the petitioners.

	For Petitioners	:	Mr.V.Raghavachari

	For Respondents	:	Mrs.R.Maheswari, S.C.G.S.C. for R1
			Mr.M.Vaidyanathan for R2 & R3

* * * * *

O R D E R

The prayer in the writ petition is for issuance of a writ of certiorarified mandamus to quash the notification, dated 22.06.2000, issued by the first respondent, in sofar as it denies the benefits of revised pay scales to the employees, who have resigned or relieved from service between 01.07.1997 to 22.06.2000 and to direct the respondents to pay the arrears of pay to the petitioners, under the said notification for the work extracted by respondents, with interest at 24% till the payment.

2. The short facts of the case are as follows:

The petitioners submit that they were working in the office of the respondent Corporation in the post of Engineering Assistant Grade-II (Class-III). The first petitioner joined service on 02.07.1993 and resigned from the post on 25.02.1999. The second petitioner joined service on 06.11.1993 and resigned from the post on 25.01.1999. The third petitioner joined service on 01.07.1999 and resigned from the post on 21.11.1999. They resigned from the posts on account of the fact that they were selected by Tamil Nadu Public Service Commission as Assistant Engineers. The respondents issued a notification, dated 22.06.2000, which is impugned herein, introducing revised pay scale with retrospective effect to the employees of Class-III and Class-IV of the respondent Corporation. Revised pay scale benefits are to be given to the employees, who were in whole time salaried service in the permanent establishment of the Corporations on 01.08.1997 and also those, who joined service after the date of notification. But, the benefits of wage revision is denied to those employees, who had resigned on or before the date of notification irrespective of whether they are relieved or not during the period between 01.08.1997 and 22.06.2000, including both days.

3. They further submit that on coming to know of the said notification, they sent a representation to the respondent Corporation for further details and to consider the case of the petitioner and extend the revised pay scale benefits under the said notification, but there was no reply. Therefore, sent a notice, dated 23.04.2001, calling upon the respondents to consider their case and to pay the revised arrears with all benefits. However, the respondents had not responded. Hence, they have filed this writ petition seeking the relief as stated above.

4. The second and third respondents have filed a counter statement and denied all the allegations made in the affidavit except those that are specifically admitted herein and put the petitioners to strict proof of the same. The respondents submit that these respondents may be permitted to file additional counter affidavit, if any, at a later stage. The petition is not maintainable in law. The averments mentioned in paras 4 to 9 of the affidavit are objected to. The particulars of service of the petitioners are mentioned below:-

Sl.No.

Petitioner Name Post held Joining Date Resigned date R.Ramesh Eng. Gr-II 02.07.1993 25.02.1999 S.Sridharan Engr. Gr-II 06.11.1993 25.01.1999 S.Lalbaghadur Eng. Gr-II 02.07.1993 21.01.1999 All the petitioners resigned from the service of the Life Insurance Corporation of India on account of the fact that they were selected by the Tamil Nadu Public Service Commission as Assistant Engineers in Public Works Department, Government of Tamil Nadu. It is true the Central Government in exercise of the powers conferred on it by Section 48 of the Life Insurance Corporation Act, 1956 has issued notification No.GSR 552 (E) on 22.06.2000 to make revision in terms and conditions of Life Insurance Corporation of India Class III & IV Employees Service Rules 1993. In Sub-clause 3 of Clause I of the said Rules, it has been provided as under. These rules shall be applicable to those Class III and Class IV employees who are in the whole time salaried service in the permanent establishment of the Corporation as on 01.08.1997 provided that the Class II and Class IV employees whose resignation had been accepted or whose services had been terminated under Rule 39 of LIC of India (Staff) Regulations, 1960 during the period from 01.08.1997 and the date of publication of this Notification in the Official Gazette shall not be eligible for the arrears on account of revision. As all the three petitioners have resigned from their services on 25.02.1999, 25.01.1999 and 21.01.1999 respectively they are not entitled to claim the benefits of the revised scales of pay as arrears.

5. The respondents 2 and 3 further submit that the Life Insurance Corporation was created under LIC of India Act, 1956, Section 48 of which empowers the Central Government to make rules by notification in the Official Gazette for carrying out the purposes of the Act.

The Life Insurance Corporation (herein after referred to as "the Corporation") was established under Section 3 of the Act as a Body Corporate having perpetual succession and a common seal with powers subject to the provisions of the Act, to acquire, hold and dispose of property and which may be its name sue and be sued.

Section 6 deals with the functions of the Corporation.

The Central Government had in exercise of the powers conferred on it by Section 11(2) of the Act issued on 01.06.1957 an order known as (The LIC Alteration of the remuneration and other terms and conditions of service of employees) Order 1957 (hereinafter referred to as the Standardization Order) providing for remuneration and other terms and conditions of service applicable to employees.

Section 48 of the LIC Act empowers the Central Government to make rules by notification in the Official Gazette for carrying out the purposes of the Act and vide sub Section (2) without prejudice to the generality of the foregoing power, to provide for all or any of the matters mentioned in the sub-section.

Section 49 of the LIC Act empowers the Corporation to make with previous approval of the Central Government by notification in the Official Gazette for carrying out the purposes of the Act and vide sub section (2) without prejudice to the generality of the foregoing power, to provide for all or any of the matters mentioned in the sub section.

Before the amendment of Section 49 in 1981 by the Life Insurance Corporation of India (Amendment) Act 1981 (hereinafter referred to as "Amendment Act"), the power of the Corporation to make regulations under sub section (2) of Section 49 included the power to provide for the terms and conditions of service of the employees of the Corporation. The Corporation has accordingly framed the Life Insurance Corporation of India (Staff) Regulations, 1956 providing for the terms and conditions of service of the employees of the Corporation.

Subsequently in super cession of these regulations, the Corporation has in exercise of the powers conferred by Section 49(2) (b) and (bb) of the Act framed regulations known as the Life Insurance Corporation of India (Staff) Regulation 1960 providing for the terms and conditions of service of its employees.

The Provisions of clause cc of Subsection 2 of the Section 48 and any rules thereunder shall have effect not withstanding anything contained in any judgment, decree or order of any Court, Tribunal or other authority and not withstanding anything contained in the Industrial Disputes Act, Settlement, Award or other instrument for the time being in force.

6. The respondents 2 and 3 further submit that the Principle of Equal Pay for Equal Work is not applicable to this case. The Employees who resign and desert the Corporation cannot compare and claim the same benefits granted to retired and deceased employees who are committed and loyal workers. In other words there is nothing wrong in extending the benefits of Revised Scale of Pay with retrospective effect only to those loyal and committed workers and not extending it to those who left the service in search of greener pastures. The respondents further submit that the averments mentioned in grounds a, b and c of the petitioners affidavit are not correct. The averments that the impugned notification is discriminatory against the principles of Service Jurisprudence and violates Articles 14 and 21 of the Constitution of India are objected to. In Service Jurisprudence the words superannuation, voluntary retirement, compulsory retirement and resignation have clear and different connotations. The distinction between superannuation / voluntary retirement on the one hand and resignation on the other hand is well recognized. Retirement implies putting in the required minimum service and brings in the element of "Loyalty". Resignation implies the act of the employee / petitioners herein moving to pastures new and green.

7. The respondents 2 and 3 further submit that the petitioners cannot challenge the notification either on the ground of arbitrariness or discrimination in view of the fact that when the petitioners left the service their salary upto the date of their leaving the service was paid to them. There is no arrears. Nothing was due under the contract of employment. As stated above there is nothing wrong in extending the benefit of revised scale of pay only to those who fall under the category of loyal and committed workers and not extending to those like petitioners who resigned in search of better employment prospects. The distinction made is reasonable. It has a rationale nexus to the object sought to be achieved that is to reward and benefit those who are loyal to the Corporation. On the other hand, the petitioners have virtually deserted the Corporation by resigning to take up more lucrative and advantageous employment. Therefore, the petitioners are not entitled to claim any benefits due to wage revision. Hence, the respondents entreat the Court to dismiss the above writ petition.

8. The highly competent counsel appearing for the petitioner submits that the petitioners were working in the office of the respondent-Corporation in the post of Engineering Assistant Grade II. The first petitioner joined the service on 02.07.1993 and resigned from the respondents office on 25.02.1999. The second petitioner had joined the service in the office of the respondent on 06.11.1993 and resigned from the post on 25.01.1999. The third petitioner had joined service on 02.07.1993 and resigned from the post on 21.01.1999. All the petitioners resigned from their respective posts on account of that they were selected by Tamil Nadu Public Service Commission as Assistant Engineers and posted in the Public Works Department of Tamil Nadu Government.

9. The highly competent counsel appearing for the petitioner submits that the respondents had issued notification and the pay scale was revised with retrospective effect to the employees of Class III and IV of the respondent-Corporation. As per the notification, the petitioners are entitled to receive benefits from the respondents' office as per the revised pay scale. This was not considered by the respondents, who rejected the same.

10. The highly competent counsel appearing for the respondents 2 and 3 submits that the petitioners resigned from the Life Insurance Corporation since they were selected by the Tamil Nadu Public Service Commission as Assistant Engineers in Public Works Department of the State. It is an admitted fact that the Insurance Corporation had issued notification on 22.06.2000 to make revision in terms of conditions of Life Insurance Corporation of India Class III and IV employees Service Rules. These rules shall be applicable to those who are class III and IV employees, who are in the whole time salaried service in the Corporation, as on 01.08.1997.

11. The highly competent counsel appearing for the respondents 2 and 3 further submits that the Class III and IV employees, whose resignation had been accepted or whose services are terminated during the period from 01.08.1997 and the date of application of this notice in the official gazette shall not be eligible for the arrears on account of revised pay. All the three employees / petitioners have resigned from their services on 25.02.1999, 25.01.1999 and 25.01.1999 respectively. As such, they are not entitled to claim the benefits of the revised scale of pay as arrears.

12. The highly competent senior counsel Mrs.R.Maheswari, appearing for the first respondent submits that the Life Insurance Corporation was established under the LIC of India Act, 1956. As per Section 58 of the Act, the Central Government is empowered to make rules by notification in the official gazette. Further, the notification issued by the second and third respondents is appropriate for Class III and IV employees. The said notification is not applicable to the petitioners herein.

13. On considering the facts and circumstances of the case and arguments advanced by the highly competent counsels on all sides and on perusing the instructions issued by the third respondent stating that the employees who have resigned or whose services have been terminated under Rule 39 of the Staff Rules, 1960, during the period from 01.08.1997 to the date of notification to 22.06.2000 and therefore, they are not entitled for any arrears. This court is of the view that in the instant case, the petitioners have resigned on 25.02.1999, 25.01.1999 and 21.01.1999 respectively. As such, it is evident that during the relevant period mentioned in the notification, they have resigned and hence, the prayer of the writ petitioners cannot be granted. Therefore, the above writ petition is dismissed. There is no order as to costs.

22/ 04/ 2014

Index	     : Yes.
Internet : Yes.
k r k / r n s

C.S.KARNAN, J.
k r k /r n s
To

1.The Joint Secretary,
   Ministry of Finance,
   Government of India,
   Department of Economic Affairs
   Insurance Division,
   New Delhi.

2.The Regional Manager (E & OS),
   Life Insurance Corporation of India,
   Southern Zonal Office,
   102, Anna Salai, Madras-2.

3.The Chairman,
    Life Insurance Corporation of India
    Central Office,
   Yogakshema, Jeeban Bhima Marg,
   Mumbai-400 021.	
Pre-Delivery Order in
W.P.No.2861 of 2002

22/04/2014

Tuesday, 14 September 2021

LIC's learned lawyers argue court cases unconstitutionally!

     A judgment by the Madras High Court in 2014 decided against 3 ex-employees who had asked for L.I.C of India to pay their arrears arising due to retrospective wage revision. L.I.C's esteemed lawyers undoubtedly left no stone unturned in trying to deprive the ex-employees of their legally rightful dues.

     What shocked me was that they proved them to be a deserters! Strange logic! 

     Consider the fact that Article 19 ( 1) (g) of Constitution of India provides Right to practice any profession or to carry on any occupation, trade or business to all citizens.

     Also, payment of salary/ wages in is a contractual/ statutory obligation of the company. It is the social and moral responsibility of the employer to ensure full payment of wages. 

     If the employee was on roll on the date from which the wage revision was effected, why shouldn't he/she get those arrears' payments? It was L.I.C's fault that they didn't implement the wage revision on time. Why should the ex-employee be made a scapegoat and defrauded of his/her hard-earned money, on flimsy, unconvincing and wrong pretexts like 'desertion for greener pastures'? It is downright insulting and illegal, in fact!

     Now let us consider 'desertion' which is a very derogatory and humiliating word:

     Has the person deserted his post in the defense services or other paramilitary forces, in which case it is a grave offense and must be rightly punished?

    Has the person just left service due to personal reasons, which may be the possibility in the above-mentioned court case, and hence is innocent? 

    Interestingly, employees in L.I.C of India are not bound by any clause wherein they could be pronounced a 'deserter'! In fact, the Corporation should specifically mention it on its appointment letter, confirmation letter and notify this clause of repudiation to the employee who opts for resignation; so that he/she could make an informed choice, but L.I.C does no such thing. At least my letters didn't have that clause!

    In my opinion, only the extremely confident and talented ones with initiative and the desire to achieve great things in life and better their lives and the world; leave existing jobs to find better alternatives. They could join somewhere else where their talents will be better regarded, encouraged and nurtured; start their own ventures and become entrepreneurs, provide the jobless with employment and improve the economy; or choose to stay at home and improve their health and quality of their lives! Each to his or her or their own!

     Let's see how some famous persons who quit their jobs have fared: 

1. India's Honorable Prime Minister Sri Narendra Modi left his tea stall. 

Had he not done so, India would have been deprived of this determined, efficient and strong administrator! 

2. India's charismatic former RBI Governor Dr. Raghuram Rajan had left his job to accept the Governor's post. Later he resigned to join academia.

Source Internet: Dr. Raghuram Rajan assumed charge as the 23rd Governor of the Reserve Bank of India on September 4, 2013. Prior to this, he was the Chief Economic Advisor, Ministry of Finance, Government of India and the Eric J. Gleacher Distinguished Service Professor of Finance at the University of Chicago's Booth School.

3. India's former President Dr. A.P.J.Abdul Kalam was a scientist who left his job at I.S.R.O to take up the top-notch assignment. If he would have stuck to his earlier assignment, India would have been deprived of a great and wise leader who struck the right chord with young and old alike!

Source Internet: Before becoming the President of India, he worked with the Indian Space Research Organisation (ISRO) and Defence Research and Development Organisation (DRDO) as an aerospace engineer.

     Kindly note that I have used the above-mentioned 3 examples to make my point that people who take up new and challenging assignments are exceptionally self-confident, capable, brilliant and brave and are NOT deserters! 

     Even the Provident Fund (P.F.) rules allow transfer of the monies outstanding in an employee's P.F. account to the P.F account pertaining to his new employment, when he switches jobs.

     You could have umpteen examples of exceptional people who have made a mark in the world after leaving (Not deserting!) their previous jobs. 

Just run a Google Search! 

     Hope L.I.C's esteemed lawyers who seem to be living under a rock in the medieval stone ages; take this challenge!

     Why, L.I.C itself has many people, even at its top-most echelons who have left service and joined elsewhere! 

Sri G.N. Bajpai resigned as Chairman of L.I.C of India to join the Securities & Exchange Board of India and Sri T.S. Vijayan stepped down as Managing Director of L.I. C of India to become Chairman of the insurance regulator, I.R.D.A. Were they deserters. as per L.I.C's learned lawyers' arguments?

Even recently, Mr. S.K.Roy, the Chairman of L.I.C 'deserted' L.I.C and was denied his arrears' payments! The last news that I had read about him on the internet was that he was trying hard to get the management to treat his resignation as voluntary retirement and not resignation! 

So when it comes to their money, they will not forfeit it at any cost. But we should not even raise our voice for our equally hard-earned money! 

Most unfair and unjust! Downright deplorable!

****

     Why do resigning ex-employees even have to approach courts for justice when the Supreme Court has itself declared the clause by which arrears are being illegally repudiated since 1997, Clause 3 i b to be ultra vires in its 2007 judgment? Beats me! 

                                                 Speak up L.I.C of India!


Do read the full judgment in my forthcoming blog!

**********************************************************************************************************

 P.S. This is a classic case of 'Ulta chor kotwaal to daante!"

L.I.C of India has defrauded the resigning ex-employees of their legally rightful dues, so it must be punished, but our system puts the onus unfairly on the ex-employees who are just asking for payments due to them as they were on the salary rolls of the Corporation, on the date from which wage revisions were declared!

Thursday, 5 August 2021

Does L.I.C of India make sound investments?

 Source: https://theprint.in/economy/lic-has-lost-more-than-rs-20000-crore-in-just-5-psu-stocks-modi-govt-made-it-buy-in-2-yrs/295765/

LIC has lost more than Rs 20,000 crore in just 5 PSU stocks Modi govt made it buy in 2 yrs

India’s largest life insurer LIC has assets of over Rs 31 lakh crore. But value of its investments in firms like New India Assurance, HAL & IDBI Bank has halved.

 24 September, 2019 9:34 am IST

New Delhi: The Life Insurance Corporation of India has often ended up being the lender of last resort to the government.

But some high-profile and large investments made by LIC in the stocks of state-run companies in recent years have eroded in value, even though stock markets overall have grown during this period, an analysis by ThePrint has found.

LIC’s investment in initial public offerings (IPOs) of state-run firms or in share sales of listed PSUs, some accounting for around 50 per cent of the funds raised by the government through these issues, have seen their value halve, analysis of data from stock exchanges shows.

Besides, LIC increasing its stake in IDBI to 51 per cent has not proven to be a prudent buy as the bank has been bleeding due to heavy losses.

LIC, with total assets of more than Rs 31 lakh crore, is the country’s largest life insurer. It has not only bailed the government out through investments in state-owned firms and public sector banks, it has also lent a helping hand to fund-starved sectors like railways, road and power over the last few years.

Data released from the RBI shows that the share of public investments in LIC’s total investment increased to 85 per cent as of March 2019 from 79 per cent as of March 2014.


Also read: LIC put Rs 10.7 lakh cr in PSUs under Modi, almost same as investments in 6 decades to 2014


How each investment has fared

LIC picked up more than 50 per cent of shares offered in the IPOs of state-owned general insurer New India Assurance Company in November 2017. LIC made a total investment of Rs 5,713 crore at an issue price of Rs 800 at the time.

Graphic: Arindam Mukherjee | ThePrint
Graphic: Arindam Mukherjee | ThePrint

However, the value of LIC’s holdings had fallen to Rs 757 crore, down 86 per cent, after the share price fell to Rs 106.85 (23 September 2019).

It’s a similar story for another general insurer, General Insurance Corporation. LIC invested Rs 5,641 crore in GIC in October 2017, but the value of its investments has nearly halved to Rs 2,979 crore at present.

LIC’s investments in three other public-sector IPOs haven’t done well either. It invested Rs 2,843 crore in Hindustan Aeronautics Ltd in March 2018, but the value of its investments has fallen 38 per cent to Rs 1,751 crore. Its relatively smaller investments in MSTC (formerly Metal Scrap Trading Corporation) and Bharat Dynamics are also trading in the red.

Another example is the acquisition of the loss-making state-run IDBI Bank. LIC invested Rs 21,624 crore in the bank to increase its stake to 51 per cent from 8 per cent in September-December 2018. The value of its equity holdings is now Rs 10,967 crore, a fall of 47 per cent in less than a year, after the bank, now classified as a private sector lender, raked up losses amounting to Rs 8,718 crore in just two quarters.

LIC also picked up more than 40 per cent of the shares offered by the government in NTPC in August 2017. It invested around Rs 4,275 crore, but the value of that investment has come down by 30 per cent in the last two years to Rs 3,003 crore.

All in all, LIC has seen the value of its holdings erode by more than Rs 20,000 crore in just five major stocks in roughly two years.

Only two of LIC’s IPO investments in the last two years in state-owned firms are in the green. The IPO investments in Mishra Dhatu Nigam and GRSE (Garden Reach Shipbuilders & Engineers), totalling Rs 246 crore, have not made losses, but the gains are only Rs 50 crore.

LIC did not respond to an email seeking comments until the time of publishing this report.


Also read: Is Modi govt being reasonable or reckless in using LIC to back its ailing public sector?


Friday, 25 June 2021

LIC's IPO

 

Source: https://www.businessinsider.in/business/corporates/news/for-lic-ipo-to-succeed-the-life-insurance-giant-has-to-dump-a-lot-of-sick-stocks/articleshow/73889676.cms

For LIC IPO to succeed, the life insurance giant has to dump a lot of sick stocks

FEB 5, 2020, 11:01 IST
  • Nearly ₹85 of every ₹100 rupees invested by LIC is either government companies or government securities like bonds.

  • In 2010, LIC had to shell out ₹11,500 crore to buy government’s shares of REC, NMDC, and NTPC because other investors weren’t forthcoming.

  • LIC also owns stake in sick state-owned companies like MTNL and SAIL.

The Life Insurance Corporation has bailed the Indian government out many times over the years. But it may not be able to do so, as freely, after the IPO proposed by the Finance Minister Nirmala Sitharaman in her budget speech.

Do read the full article at the link given above. It is an interesting analysis.