Disciplinary actions in banking must adhere to principles of natural justice and ensure parity in punishment among co-delinquents, as disparities can indicate bias and unjust treatment.

ORDER :

(Namavarapu Rajeshwar Rao, J.) :

This writ petition is filed challenging the order dated 18.07.2019 vide HR/AR/No.16 passed by the first Respondent confirming the order of punishment of “Removal from Service as provided in Regulation No.67(i) of the State Bank of Hyderabad (Officers) Service Regulations 1979” by the 2nd Respondent vide No.BCDM/LHO/HYD/347 dated 26.12.2018.

2. Heard Sri Prabhakar Sripada, learned Senior Counsel representing Sri Arshad Ahmed, learned counsel appearing for the petitioner and Sri B.S. Prasad, learned Senior Counsel representing Pearl Law Associates, learned counsel for the respondents.

3. The brief facts of the case are as follows:

i) The petitioner joined the respondent Bank as a Junior Associate on 05.09.1988, and his probation was confirmed after six months, i.e., on 05.03.1989. Later, the petitioner was promoted as Assistant Manager in normal channel on 01.12.2002. Subsequently, he was promoted as Deputy Manager on 01.12.2006 and finally as Manager on 01.11.2012.

(ii) On 16.08.2016, an E-mail from one Sri Nishidhar Reddy Borra, General Secretary of the Association of Australian Education representatives (AAERI) in India, was addressed to the Deputy General Manager, State Bank of Hyderabad, Gunfoundry, informing about the receipt of fraud educational loan sanction letters issued by various Branch Managers of the State Bank of Hyderabad. It was further stated in the said e-mail that they have come across such fake education loan sanction letters issued by different branches of SBH, including the Green Park Colony and Panderghast Road Branches. It was further stated that some Branch Managers of the SBH were also involved along with their associates in the fraud. Some of the identified consultants are one Mr. Sagar and one Mr. Srinivas. It was further informed that a copy of the mail has also been marked to the integrity cell of the Department of Immigration and Border Protection Australia. Accordingly, he requested the competent authority of the SBH to conduct a detailed investigation in respect of the said branches and take appropriate action.

(iii) Pursuant to the developments above, the petitioner, during his tenure as MSME at Moulali Branch from August 2015 to October 2017, was issued a Show Cause Notice dated 12.10.2017, requiring him to offer his explanation in respect of the serious irregularities and lapses said to have been committed by him. The petitioner submitted his reply on 23.10.2017, denying the allegations against him in the Show-Cause Notice. Not being satisfied with the petitioner’s reply, the Disciplinary Authority issued a Chargesheet dated 30.07.2018 under State Bank of Hyderabad (Officers) Service Regulations, 1979, against the petitioner framing the following articles of charges:

(i) You have influenced and pressurized Sri T Bhuvan Mohan, Branch Manager, Green Park Colony, Hyderabad and Sri K Chandra Sekhar, Branch Manager, Prenderghast Road Branch, Secunderabad and forced them to issue pre-printed fake educational loan san