The disciplinary action was modified due to unsubstantiated allegations, emphasizing that personal financial transactions do not constitute misconduct unless violating conduct regulations.

ORDER :

Hemant Chandangoudar, J.

The challenge in this writ petition is to the order dated 23.09.2014 passed by the Reviewing Authority / Chairman and Managing Director, Union Bank – the first respondent. By the said order, the major penalty of compulsory retirement from the services of the Bank, imposed on the petitioner by the Disciplinary Authority in terms of the order dated 10.03.2014 and upheld by the Appellate Authority in terms of the order dated 28.05.2014, was modified to the penalty of reduction in grade, i.e., from SMGS-IV to MMGS-III, fixing his basic pay at Rs.31,500/- as applicable to MMGS-III.

2. The petitioner, while serving as Chief Manager, was served with a show cause notice dated 30.10.2012 alleging the following:

i. Cash credit entries had taken place in his Joint SB Account with his wife, which were beyond his known sources of income.

ii. Transactions had taken place in the account of Shri D. Bala Ganesh (Staff), and the said transactions related to the sale of shares.

iii. Amounts had been paid, either by credit to the SB Account or by way of cash, to Shyamsunder, a customer of the Bank, from the SB Account of the petitioner (joint account with his wife).

iv. Amounts were transferred to the credit of the petitioner from the account of DVG Tech Solutions, a customer of the Bank.

v. Credits were observed in the petitioner’s account from the account of M/s. VRS Imports, a customer of the Bank.

vi. Various unusual credit transactions were observed in his OD Account by means of cash deposits beyond his known sources of income.

vii. Amounts were transferred from the account of the petitioner to the credit of Shyamsunder, a customer of the Bank.

viii. The overdraft account of the petitioner was credited by debit to the SB Account of R. Subramaniam for Rs.2 lakhs from the CD Account of M/s. Guts Entertainment, who were customers of the Bank.

ix. The petitioner was sanctioned a housing loan of Rs.30 lakhs, and the outstanding amount as on 31.05.2012 was only Rs.6.52 lakhs. Within a short period of less than four years, a sum of Rs.29.64 lakhs was repaid through 53 credit entries in the Housing Loan Account.

x. A cash entry of Rs.7 lakhs was made to the credit of the Sundry Deposit Account on 30.05.2011 at Vadapalani Branch. On 31.05.2011, the Sundry Deposit Account was debited for Rs.7 lakhs and credited to the account of P. Venkata Reddy, the father of the petitioner, and to the accounts of the petitioner.

xi. Shri Venkata Reddy died on 01.06.2012. On 31.05.2012, just one day prior to his death, a transfer entry of Rs.50,000/- was made from his account to the credit of the petitioner’s SB Account by debit voucher.

xii. Even though the petitioner did not use the Maruti 800 vehicle at Belgaum, i.e., his place of work, he claimed conveyance reimbursement on a petrol-expenses basis for the said car from May 2009 to September 2011 for his personal gain.

xiii. Despite transfer of ownership of his car to his sister on 09.08.2010, he made a false declaration from August 2010 to September 2011 that he still owned the said vehicle and claimed an excess amount of Rs.36,741/-

3. The petitioner submitted his reply to the show cause notice. Since the explanation was found unsatisfactory, a departmental enquiry was initiated. The Enquiry Officer conducted the enquiry and, after recording the statements of the Presenting Officer, the petitioner, a