Unusual move! Why Union Bank of India ED Pankaj Dwivedi was demoted to general manager by the government

Union Bank of India ED Pankaj Dwivedi demoted: The government has taken an unprecedented step by demoting Union Bank of India Executive Director (ED) Pankaj Dwivedi to the position of General Manager (GM).

According to a PTI report, through a gazette notification, the Department of Financial Services, under the Ministry of Finance, announced the cancellation of Pankaj Dwivedi's appointment as ED at Union Bank of India, which was originally made via notification dated March 27, 2024.

Following this decision, he has been reinstated to his former role as General Manager at Punjab & Sind Bank.

Why was Union Bank of India ED Pankaj Dwivedi demoted?

Sources told PTI that this administrative action was implemented due to an ongoing case against Dwivedi in the Delhi High Court.

The court highlighted that the appointment to the position of Executive Director at Union Bank of India was in contravention of regulations, as it lacked the necessary vigilance clearance.

A legal challenge through public interest litigation was initiated in the Delhi High Court last year, contesting Pankaj Dwivedi’s elevation to the role of ED at Union Bank of India, the report said.

In August 2024, a bench presided over by Acting Chief Justice Manmohan served notices to the Centre, Central Vigilance Commission (CVC), and Dwivedi regarding the PIL.

The bench sought clarification on the appointment process, particularly questioning the absence of vigilance authority approval.