Ex-CEA book: Union Bank admits lapses; publisher got over Rs 3 crore
On Tuesday, the bank acknowledged 'lapses' in the purchase, and said it was examining the issue, even as its shares plummeted by 6.18 per cent to Rs 118.35 on the BSE. In a filing to exchanges, the bank said that it 'has made the said procurement'. 'However, there were certain lapses in the procurement, which are being examined by the bank,' it said.
The Indian Express had first reported Sunday that one of the key reasons for Subramanian's recall last month by the Government as the International Monetary Fund's Executive Director, on its behalf, was an 'alleged impropriety' related to the promotion of this book.
Subramanian did not respond to requests for comment from The Indian Express.
It is understood that apart from the bank's bulk purchase, the publishers may have also received other, smaller bulk orders for Subramanian's book. Industry sources said these orders were private and institutional in nature and 'nowhere close' in scale to the bank's order.
When contacted by The Indian Express, Rupa Publications said they had no comment on the purchase by the PSU bank.
In publishing circles, Union Bank of India's order is being seen as a 'fantastical' deal, although The Indian Express has learnt that seven months on, the publishers are yet to be paid the remaining 50 per cent for the bulk order.
It is learnt that the publishers had 'executed' the order within a month of receiving it — around September last year. The order is understood to have been sent to the publishing house through an email from the bank. Subsequently, it is learnt, several reminders for dues have been sent by the publishers to the bank's top management in New Delhi.
The Indian Express had reported Sunday that Subramanian was recalled six months before the end of his three-year term at the International Monetary Fund. Apart from concerns over the book, this newspaper had reported that there were reports of alleged violation of some 'internal IMF protocols'.
All IMF member-countries are represented on its Executive Board, which discusses the national, regional, and global consequences of each member's economic policies — and approves financing to help member-countries address temporary balance of payments problems, as well as overseeing the IMF's capacity development efforts.
Sources told The Indian Express it was through two separate internal office letters dated June 28, 2024, and July 29, 2024, that Union Bank of India's Support Service Department (SSD) informed zonal heads about the 'top management's' desire to distribute copies of the book among customers and corporates.
'A new book envisioning tomorrow's economic powerhouse is thought provoking, illuminating and a hopeful book that shines a light on India's potential as a global leader. It is desired by top management to procure and distribute the copies of this (India@100) book among customers, local schools, colleges, library, etc,' the bank said in the letters.
The letters were sent by SSD General Manager Girija Mishra, following an order from the bank's MD & CEO, sources said. Union Bank of India's Managing Director and MD & CEO A Manimekhalai and Executive Director Nitesh Ranjan did not respond to requests for comment from The Indian Express.
According to the June letter, Rupa Publications has offered a price of Rs 350 per book for the student edition. This letter directed each zonal office to procure 10,525 student edition copies of the book at Rs 350 per piece.
Both the letters informed all zonal heads that for early delivery of the book, the bank will make 50 per cent advance payment to the publisher through a revenue budget available under 'Miscellaneous Head'.
The July letter stated that Rupa Publications was offering a discounted price of Rs 597 per book for the hardcover edition — it asked zonal offices to procure 10,422 hardcover editions.
According to banking sector experts, banks do not purchase books in 'such huge quantities', even for distribution to customers.
Meanwhile, Union Bank of India's employees' association has also questioned the decision to purchase Subramanian's book in such a large quantity. '…it has become the responsibility of the Bank to ascertain how far the authority who has approved the expenditure for purchase of books has colluded in promoting the alleged impropriety to damage the Bank and its image,' All India Union Bank Employees' Association General Secretary N Shankar wrote in a letter, dated May 4, to CEO Manimekhalai.
The union also asked the bank to disclose the benefits it achieved from spending a huge sum in purchasing and distributing Subramanian's book.
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