January 8: Indira Vikas Patra may be a fruitful savings scheme for many, but for the Ulhasnagar branch of Navjeevan Co-operative Bank, the saving certificates have caused much hardship and litigation.The bank retrieved the amount invested in the scheme only after Bombay High Court ordered the postal authorities to release the sum covered by the certificates. The Ulhasnagar branch bought 40 such certificates, worth Rs one lakh, in 1990. The amount was to double after five years. Therefore, in March 1995, a representative of the bank went to the Ulhasnagar post office for an extension of the investment period. But as he was submitting the certificates at the post office counter, unknown persons snatched the documents and fled the scene. The bank registered a First Information Report at Ulhasnagar police station.Meanwhile, the sub-postmaster, Ulhasnagar, was requested to stop payment regarding the lost certificates. The General Post Office was also informed about this. The bank asked for duplicate copies of the certificates from the Senior Superintendent of Post Offices, Thane. But the officer expressed his inability to part with the duplicates.The bank cited Rule 11 of Indira Vikas Patra, which empowered the Ministry of Communications and postal authorities to relax normal procedures, especially if the purchasers were facing hardsips. Still, the senior superintendent refused to relax any rules.Meanwhile, the United Insurance Company - where the bank had insured the 40 Indira Vikas Patra certificates - refused to acknowledge the insurance claim. The company questioned why the loss of 40 certificates had not been shown in the bank's annual balance sheet. Interestingly, in February 1997, the Ulhasnagar postal authorities confirmed that the amount covered by the certificates had not been claimed by anyone till date. But even then, Chief Post Master General, Maharashtra Circle, expressed his inability to release the sum or issue duplicate copies. Citing rule 57 (10) of the Post Office Saving Bank Manual, postal authorities declared the chapter closed. Aggrieved by this decision, the bank filed a writ petition in the High Court.The counsel for the Union Government argued that these Vikas Patras are like ``currency notes which can be encashed anywhere in India. Therefore, payment cannot be made in absence of original certificates.''According to Ashok Desai of the High Court, the invested amount should be released by the postal authorities after the bank deposits reasonable security. Interestingly, the security amount comes to Rs two lakh!
