Bombay high court has held that IDBI Bank Ltd is not a central government undertaking while dismissing a student’s petition seeking admission to a medical college under the Maharashtra state quota.
The student had petitioned HC after being told by the state CET (common entrance test) cell that she did not fulfil the eligibility criteria as she had appeared for the Class XII board exam from another state. The student said since her father was employed with IDBI Bank, their transfer to another state would fall in the exception carved for children of central government employees under NEET (National Eligibility Cum Entrance Test, for medical college admissions for MBBS).
The question raised before HC was whether the Industrial Development Bank of India Ltd (IDBI) can be regarded as a Government of India undertaking.
“Though ‘undertaking’ is a word of large import, it has to be read and understood in the context where it occurs,” said the HC bench of Chief Justice Dipankar Datta and Justice Girish Kulkarni in their December 8 judgment.
The student had appeared for NEET 2020. She had cleared her Class X board in Maharashtra but her Class XII exam from Telangana while residing with her father there. For the state quota, she required a Maharashtra domicile and was to have passed her Class X as well as XII from schools in the state. She has a Maharashtra domicile.
NEET Rule 4.8.1 says children of employees of the government or its undertakings will be eligible for admission even though they may have passed Class X or XII from schools outside Maharashtra. The student’s father was transferred back to Maharashtra on November 19, 2020.
Her counsel, Kiran Bapat and Pralhad Paranjpe, relied on the finance ministry’s letters of 2007 and 2019 to treat IDBI on par with nationalised banks.
But the state CET cell counsel Rui Rodrigues pointed to Reserve Bank of India (RBI)’s March 2019 letter categorizing IDBI Ltd as a “private sector bank”. For the Centre, additional solicitor-general Anil Singh showed a finance ministry letter and RBI’s 2019 press release that had “re-categorised” IDBI Bank as a private sector bank with effect from January 21, 2019, after Life Insurance Corporation of India acquired 51% in it.
With “no pervasive administrative, financial and functional government control shown” after a 2003 Act transferred and vested the undertaking of the Development Bank in IDBI Ltd, HC said, it cannot be said that IDBI can be termed a state undertaking.
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