NEW DELHI: The Delhi High Court on Monday said that the Banks Board Bureau (BBB) cannot select the general manager and directors of public sector general insurers as it is not a competent body.
The ruling came after a case was filed by the National Insurance Company Ltd General Manager Ravi who complained that people junior to him were selected by the BBB for the position of director in the public sector general insurers twice - in August 2020 and May 2021.
Hearing the case, the court held that circulars enabling BBB to select the GM and directors of government-owned general insurers are not legally valid.
It also ordered that the appointments made pursuant to the selections of general manager and directors of public sector general insurers are liable to be set aside.
“Consequently, the impugned selections could not have been undertaken by the BBB. The appointments made pursuant to the impugned selections of General Manager and Directors of PSICs (public sector insurance companies) are liable to be set aside. It is ordered accordingly,” it declared.
The Banks Board Bureau is mandated to select and appoint board members for various financial institutions in public sector.