Bandhan Employees’ Trust Dispute: A Brewing Legal Battle Raises Governance Concerns

The Bandhan Employees’ Welfare Trust (BEWT) is embroiled in a contentious dispute. Members are launching a formal challenge against the trust’s management and its founder, Chandra Shekhar Ghosh. This escalation raises serious questions about potential financial irregularities and the organisation’s overall governance.

Allegations and Legal Action

BEWT members, represented by the Bongo Bhashi Mahasabha Foundation, are gearing up for a legal battle in the Calcutta High Court. Their primary concerns revolve around alleged rights violations and the possibility of misappropriated funds. Some members have levelled specific accusations, claiming that trust funds were diverted to benefit Ghosh’s family.

The BEWT, on the other hand, has countered by seeking legal intervention from the High Court as well. They claim to have already engaged in dialogue with disgruntled members but are seeking a court-sanctioned resolution to the conflict.

Transparency Concerns and Historical Context

Beyond the accusations of financial mismanagement, BEWT members have highlighted a lack of transparency within the organisation. They allege a critical lapse in governance by pointing out the absence of annual general meetings (AGMs) for a period spanning 15 years, from 2008 to 2023.

Established in 2008 with Ghosh at the helm, the BEWT initially comprised 3,076 members. Ghosh stepped down as chairman in 2015 after the conversion of Bandhan from a non-banking financial company to a full-fledged bank. Currently, the trust holds a significant stake (14.6%) in Bandhan Financial Services, the parent company of Bandhan Bank.

Uncertainties and Potential Impact

This public confrontation casts a shadow on the BEWT’s operations and governance practices. The upcoming legal battle will be crucial in determining the validity of the allegations and ultimately deciding the future direction of the trust. The outcome could have a wider impact on employee trust structures within other organisations, underlining the importance of transparent and accountable management practices.

“It has come to our attention that family members of Mr Ghosh may be improperly benefiting from the Trust’s funds,” said Parimal Kanti Mondal, president of Bongo Bhashi Mahasabha Foundation, in a letter written to the trust’s chairman, Ronendra Chowdhury, and Ghosh, on behalf of the agitating members.

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