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"19. Now so far as the contention of the petitioner
Association that change in the promotion policy
communicated vide circular dated 16.03.2009 is
illegal as there is no prior sanction of the RBI /
Government of India as required under Section 35
of the Act is not obtained has also no substance. It
is to be noted that when Central Government
sanctioned scheme and issued order dated
13.08.2008 what was sanctioned was draft scheme
approved by the Board of SBI and SBS in
consultation with the petitioner Association and
other dated 01.02.2008. In the order dated
13.08.2008 itself it has been specifically provided
that terms and conditions to be approved by the
Board of transferee bank. Not only that but even in
the communication communicated vide circular
dated 23.08.2008 in clause V it has been
specifically provided that Central Board of SBI and
Executive Committee of Central Board shall have
power to modify terms and conditions contained in
C/LPA/527/2010 JUDGMENT
annxure to the circular dated 23.08.2008. Not only
in the optional letter send along with circular dated
23.08.2008 and as per terms and conditions along
with circular / optional letter it has been
specifically provided that in respect of promotion /
inter se seniority decision will be taken by the
Board / ECCB. Therefore, at the time when scheme
was approved by the Central Government/ RBI
there were no such terms and conditions which are
subsequently changed / modified. Therefore,
contention on behalf of the petitioner that while
issuing circular dated 16.03.2009 and providing for
reduction in seniority of employees of the
transferor bank for promotion prior approval /
sanction of RBI / Central Government is required,
cannot be accepted. There is no substance in the
said submission at all.