The Punjab Government’s Water Department appears to be in a row with the country’s largest private sector lender HDFC Bank over issues of failure to cooperate with the department at the time of need.
In a recent office memo sent by the Department of Water Resources of the state government to all of its chief employees, the department has directed/requested them to close all of their bank accounts in HDFC Bank.
HDFC Bank has also responded to this.
Here’s everything you need to know on the development.
Punjab Govt’s Water Dept Asks These Employees to Close HDFC Accounts
In an office memo issued on August 22, 2022, the Principal Secretary Water Resources of the Government of Punjab has requested all chief engineers, executive engineers and superintending engineers of the water department to close their bank accounts with HDFC Bank.
The copy of the memo has been forwarded to the Principal Secretary finance also, requesting it to direct other departments of the state to do the same too, as it has noted that the private sector lending giant never co-operates whenever the department requires its support.
The memo has been forwarded to all the Administrative Secretaries too.
It reads, “It has been brought to the notice by certain Executive Engineers (Drainage-cum- District Mining Officers that the HDFC Bank had issued certain bank guarantees to the mining contractors.
These mining contractors have made default in making payment to the state government and when the Executive Engineers (Drainage-cum- District Mining Officers approach the bank to encash the bank guarantee, HDFC Bank for the one reason or the other is not encashing these bank guarantees.”
Here’s the complete memo.
HDFC Bank has taken a note of the memo and replied to it too, stating that it honours all of its payment obligations according to the terms of the bank guarantees issued by the bank.
Here’s the complete statement from the lender.
Comments are closed, but trackbacks and pingbacks are open.