: Sunday, 20 July 2025 10:22 pm
Shimla. Himachal Pradesh State Cooperative Bank (HPSCB) has revealed a serious case of major corruption of more than Rs 40 crore. It is being claimed that the bank’s managing director (MD) and the chairman, along with some officials of the Chief Minister’s Office, are defying all the rules of the Central Vigilance Commission (CVC) and Himachal Pradesh State Purchase Guidelines, giving this heavy order to Infosys without any tender process. In this regard, a PIL has also been filed in the High Court from Ajay Bhaiq’s O. It is alleged that the bank has its own strong data center and a competent internal team, running software successfully for the last 20 years. Despite this, MD and Chairman want to take this installed system to outsourced models, and that too at excessive prices. This decision is being taken without any concrete technical analysis or study, which raises serious questions on its intention.
The bank’s IT committee had prepared a proper RFP (request for proposal) for the purchase of core banking systems, which has been dismissed by the MD directly. MDs are insisting on giving contract only to Infosys, ignoring all the purchase criteria. The role of the bank’s MD is also under suspicion.
According to the guidelines of the Reserve Bank of India (RBI), the bank’s MD has to work for a maximum of 3 years, but due to unknown reasons, this MD remains in its post even after 4 years. It is alleged that MDs are taking reference to NABARD to justify this order, while it is revealed that NABARD has not issued any such RFP for HPSCB. This makes the entire deal very suspicious.
One of the largest IT companies in India in this entire episode is also surprised to ignore TCS. The TCS had proposed its proposal to the bank several times, which the bank’s MD allegedly “illegally destroyed” and did not consider it at all. According to the information, the solution of TCS is cheaper and is being successfully used by many other banks under NABARD across the country.
Despite all these facts and many objections and warnings raised by different parties, the bank’s MD and chairman Infosys has moved forward to give this order, leading to serious concerns about corruption and irregularities in the bank.
Here, according to the PIL, HP SCB is dependent on a request for proposal (RFP) issued by National Bank for Agriculture and Rural Development (NABARD) on October 27, 2023. However, this RFP was especially for 58 rural cooperative banks from 9 states, and HP SCB was neither participant nor beneficiaries. The petitioner says that HP SCB is using this RFP arbitrarily while it does not apply to it.
The PIL accused the Central Vigilance Commission (CVC) guidelines, General Financial Rules 2017, and Himachal Pradesh Financial Rules 2009. Under these rules, transparency, fairness and open competition are necessary in procurement made from public funds.
In response to RTI filed by a citizen in December 2024, HP SCB admitted that he did not release any tender or RFP, and he is completely dependent on the RFP of NABARD for CBS purchase. RTI also revealed that the lump sum cost of CBS upgradation is Rs 4.5 crore, and for five years, it will cost Rs 20,000 per branch per month, which is a total of Rs 32.64 crore.
The petition said that public funds of crores of rupees are being imposed at stake without proper tender process. The petitioner has argued that despite being a regulatory body, HP SCB is putting a “illegal commercial” pressure to purchase SCB to buy ‘Finacle’ software.
It has been alleged that the bank did not follow its own board and financial rules. If the High Court does not interfere with it, it will set a dangerous example, allowing public sector institutions to avoid open tender process and buy from the back door using the respective RFP, which will damage the public procurement structure. This PIL demands judicial intervention against the arbitrary and illegal procurement process of Himachal Pradesh State Cooperative Bank, which lacks transparency and accountability.
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Web Title-Allegation of Corruption of Rs 40 Crore in Himachal State Cooperative Bank: Conspiracy to give contrast to infosys without tender
