Centre to stop campus hiring by PSUs, banks; says selection process violated Constitution

The recruitments were stopped after the High Court stayed the process following a petition in 2014 seeking a ban on PSUs opting for campus placement at premium or private colleges, thereby excluding students from government institutes.

Written by Amitav Ranjan | New Delhi | Updated: April 15, 2017 8:39 am
Campus hiring, campus recruitment, Campus hiring PSU, PSU campus hiring, SC campus recruitment, Madras HC campus hiring, employment, Centre campus hiring, India news, Indian Express In August 2013, the apex court dismissed a review petition against the Bombay High Court order related to a plea in a case — Sonali Pramod Dhawade versus Central Bank of India — that permanent vacancies in public employment to be filled by inviting applications from the public at large.

The government will soon stop campus recruitment by public sector undertakings (PSUs), including banks, following advice from the Law Ministry that the selection process violated the Constitution and went against a Supreme Court ruling. The Ministry’s Department of Legal Affairs recently reaffirmed that “campus recruitment by PSUs in view of the decision of the High Court of Madras dated September 7, 2015 may be questioned as an unconstitutional way of recruitment to public employment” and may amount to “discrimination”. The recruitments were stopped after the High Court stayed the process following a petition in 2014 seeking a ban on PSUs opting for campus placement at premium or private colleges, thereby excluding students from government institutes.

It was subsequently resumed after the High Court in September 2015 declined to affirm the ban saying that the campus method was a “time tested” process in securing the “best talent” that was otherwise being weaned away by multinationals and private firms.

However, this failed to cut much ice with the Legal Affairs Department, which reiterated last month its May 2015 stand and said that the court had overlooked Supreme Court’s decision to uphold a Bombay High Court order of April 2013 that the campus interview mode “trampled the fundamental rights” of other candidates. “Article 141 of the Constitution provides that the law declared by the Supreme Court shall be binding on all courts within the territory of India,” the department said.

In August 2013, the apex court dismissed a review petition against the Bombay High Court order related to a plea in a case — Sonali Pramod Dhawade versus Central Bank of India — that permanent vacancies in public employment to be filled by inviting applications from the public at large.

The Bombay Court said that the campus interview method violated the fundamental rights guaranteed under Article 14 (Equality before Law) and Article 16 (Equality of opportunities in matters of public employment) of the Constitution.

It said that such a method would also be unfair to citizens no longer pursuing education in any college or institution, much less the specified ones where the recruitment process was being conducted.

Nearly all Maharatna PSUs and public sector banks employ middle level officers who can be groomed for specialised profiles through campus visits to top engineering and business schools.

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  1. M
    Manoj Kanti Dutta
    Apr 16, 2017 at 6:23 pm
    "PSUs opting for campus placement at premium or private colleges, thereby excluding students from government ins utes."............It is actually the other way round. PSUs opting for campus placement at government colleges, thereby excluding students from private ins utes
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      Tanwir Shihab
      Apr 15, 2017 at 11:59 am
      Equal opportunity to all the aspirants must be made available. India is a vast country with various educational ins utions which are out of the radar of headhunters. Only students from elite colleges in metropolitans get picked up through the campus selection procedure. This is limited approach also appears beneficial to the hiring firms for man reasons. GOI intervention needs to be appreciated.
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      1. S
        Sreenivasan Ezhuvappady
        Apr 15, 2017 at 11:40 am
        Employment created by the government in last two years is near to nill. Hence the government that came to power promising to create one crore new employment opportunities is finding it difficult to answer the youth affiliated to them in their political ideology. On the top of it, government's unwanted initiatives on Demonetisation of currency notes and half-hearted attempts intended to fool the public by giving a false information to them that the government is working on the black money issue also wiped out several jobs in the market. Now all over India the government is carrying out a Gomukth Bharath initiative, several thousands are losing job in rearing cows to leather and diary industry. It is necessary for the government to stop direct recruitment from campuses. It has to be channelised by a govt. monitored system so that atleast the government supporters can be pacified by giving them jobs selectively.
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        1. S
          S Srinivasan
          Apr 15, 2017 at 11:29 am
          Brain Drain is virtually encouraged by the Governments at the centre and states,which ever party rules.They got to appease the backward caste,no matter many of the so called backward caste candidates parents may be IAS,IPS etc. Then what is the fun in telling the public that China,Brazil, an etc.have over taken in growth parameter.
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            pradeep
            Apr 15, 2017 at 10:50 am
            No sane individual will join banks and spoil their life.the banks are headed for closure to begin with sbi.there are no nav ratnad now.all of them afflicted with problems.
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              Parveen
              Apr 15, 2017 at 10:23 am
              This is a milestone verdict that will set the ball rolling towards some corrections for the government education. HigherEd needed this clarity whether the PSUs being the government representative, themselves reject most of the capable candidates without going just because their college is not a b or a collaborator with them..We need to walk beyond IITs or NITs or Metro cities colleges and campuses.
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                sono Malik
                Apr 15, 2017 at 9:30 am
                If the govt is concerned about the govt college students, then why doesn't it invest in them and produce good output. Companies will go where talent is and not where employable graduates are produced. Now these nav ratnas will become non ratnas , in due course of time. As per sarkari banks, they don't need talent as they have to dance to the tune of big Industrialists and Natas. Look at their npas . Do you think that were these possible without bribes and political interference?
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                1. S
                  Safia Falahi
                  Apr 15, 2017 at 10:30 am
                  If the students from elite high cl colleges are really talented and want to work in PSUs, then they can easily come through open compe ion. Why they want back door entry through campus recruitment? Are they not sure of their competence?
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                  1. S
                    shankar ravikant
                    Apr 19, 2017 at 9:40 pm
                    Well, We are 100 sure about competence because of we are work hard in smarter way which we have already shown our competence level in JEE ADVANCE ok. U are talking to compete, where were you in cl 12th? If things will go like this then we will show your real AUKAAAT in GATE examination. If We will GATE exam seriously then U will not get entry in PSU with "front door" also.
                2. P
                  Pinna
                  Apr 15, 2017 at 9:15 am
                  The PSUs, certainly, like to pick talent direct from the ins utes, while the government selection process forces them to have so much of percentage from this or that category. Please let the private sector choose its personnel on the basis of merit only and the rest can be filled in numerous governmental jobs.
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                    TIHAEwale
                    Apr 15, 2017 at 8:23 am
                    yes the campus recruitment in PSB started in 2000 and it scandalous with many favoured candidates got thro some third rate colleges
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                    1. O
                      Observer
                      Apr 15, 2017 at 8:14 am
                      Law is common sense. And it has taken many decades to understand this common sense point. Glad long last understood. Of course vested interests give twists, turns to common sense perceptions, interpretations of same scenario, same do ents/evidence available etc. magnifying/underplaying some trivials/crucials in the process.
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                      1. S
                        Sreesheel Sreekumar
                        Apr 15, 2017 at 8:10 am
                        Fair decision ! Moreover all the recruitment should be scrutinized by the Vigilance Department of the respective organizations !
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                          Varnan Thirugnanasambandan
                          Apr 15, 2017 at 3:17 pm
                          That's true.It is a fair decision.Software companies recruitment from colleges is a big business.There must be Open compe ion ,all the recruitment must be scrutinized by the Vigilance Department.
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                        2. K
                          Krishnan Chundharan Krishnan
                          Apr 15, 2017 at 7:44 am
                          Campus recruitment in PSUs is not free and fair. This system is a denial of talented candidates waiting for job on p -out. Soon private Corporates also may drop the present Campus recruitment programme.
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                            Varnan Thirugnanasambandan
                            Apr 15, 2017 at 3:18 pm
                            You are right sir.That's true.It is a fair decision.Software companies recruitment from colleges is a big business.There must be Open compe ion ,all the recruitment must be scrutinized by the Vigilance Department
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                          2. I
                            Indian Citizen
                            Apr 15, 2017 at 7:25 am
                            Yes it needs to be banned. This practice of recruitments through campus placements have give rise to large number of non-performers in PSUs also. Even high tech IT companies recruiting from premium ins utes have been complaining of low level of candidates. Why afraid of compe ion?
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                              DK
                              Apr 15, 2017 at 11:40 am
                              Agreed with your view. There is lot of mani tion and favoritism in Camus selection. Equal opportunity to be given to all.
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                                Varnan Thirugnanasambandan
                                Apr 15, 2017 at 3:21 pm
                                You are absolutely right.It is a fair decision.Software companies recruitment from colleges is a big business.There must be Open compe ion ,all the recruitment must be scrutinized by the Vigilance Department.Colleges calling them as Premier Ins utes must prove it through their students in open compe ion.
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                                Niladrinath Mohanty
                                Apr 15, 2017 at 7:20 am
                                The Govt. of India wants to follow the cons ution and verdict of the High and Supreme Courts. It is OK but they should get out commercial activities. As somebody said Govt. has no business to be in business.
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                                  Ramachandra.Gallupalli
                                  Apr 15, 2017 at 5:14 am
                                  .....hire only R"SS" members and that would naturally be brahmin terrorists.....Nice Idea though.
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