Former Indian government secretary EAS Sarma has declared the proposed divestment of IDBI Bank "prima facie illegal," arguing that the sale violates parliamentary assurances and disproportionately harms employees from Scheduled Caste, Scheduled Tribe, and Other Backward Classes categories.
Sarma urged the Finance Ministry to abandon the privatisation plan, stating that "good sense will prevail" and the proposal should be dropped.
Unions have previously argued that selling the state-owned bank contradicts India’s stated goal of economic self-reliance.
His intervention adds significant political weight to the growing opposition against the sale, which has already triggered widespread labor unrest.
The criticism arrives as tensions escalate within the lender.
The United Forum of IDBI Officers and Staff has announced a nationwide strike scheduled for July 27, citing concerns over job security and the broader implications of the privatisation process.
Unions have previously argued that selling the state-owned bank contradicts India’s stated goal of economic self-reliance.