Neutral Citation No. - 2025:AHC:102313 Court No. - 5 Case :- WRIT - A No. - 8536 of 2025 Petitioner :- Rohit Dahiya Respondent :- Union Of India And 3 Others Counsel for Petitioner :- Devansh Misra Counsel for Respondent :- A.S.G.I.,Anadi Krishna Narayana,Anant Kumar Tiwari Hon'ble Saurabh Shyam Shamshery,J.

1. Sri Devansh Misra, learned counsel for petitioner, Sri Anant Kumar Tiwari, learned counsel for Union of India and Sri V.K. Singh, learned Senior Advocate assisted by Sri Ashok Kumar Lal, learned counsel for other respondents are present.

2. Petitioner was initially appointed on a post of Assistant Manager in Bank of Baroda, Naveen Mandi, Kashipur Branch and later on, he was promoted as Manager and took charge as Branch Head at Maswasi Town Branch and subsequently at Rahmatganj Branch in District Rampur, Moradabad Region.

3. According to averments made in present writ petition, during course of service as Branch Head, certain complaints were made against the petitioner alleging that he has issued overdraft facility, loans and cleared certain cheques for payment without approval from different customers and a disciplinary proceedings were initiated and petitioner was suspended. Later on, by interference of this Court, suspension order was set aside, however, no further disciplinary proceedings were commenced. It is further case of petitioner that even thereafter, some complaints were made before RBI Ombudsman alleging that amount of Rs. 45,00,000/- were debited from complainant’s account without her permission or without any cheque issued by her. An award dated 25.03.2025 was passed. Said award was thereafter challenged in a writ petition before this Court wherein an interim order was passed.

4. The petitioner has approached this Court since respondent bank has initiated proceedings to classify him as fraud in terms of RBI Master Direction on Fraud Risk Management in Commercial Banks including Regional Rural Banks and All India Financial Institutions dated 15.07.2024. The Master Direction provides for classification of fraud of a person or entity and it has civil and criminal consequences also.

5. In aforesaid circumstances, a show cause notice was issued to petitioner on 29.04.2025 alleging that while working as Branch Head at Maswasi Town Branch and Rahmatganj Branch in District Rampur from 04.10.2021 to 06.02.2024, certain suspicious activities were observed in the accounts of customers. In show cause notice, various irregularities were mentioned. For reference, said irregularities are mentioned below :-

“(i) Unauthorized debit from accounts using Form No. 288 and 290 without the consent of the account holder;

(ii) Unusually large value transaction being done in the account of the wife of the petitioner;

(iii) Certain violation of discretionary lending powers while acting as the Head of the Branch;

(iv) Loans sanctioned without appraisal note, PSR, Pre-sanctioned/post sanctioned;

(v) FIR/police complaints registered by the customers under Section 420, 467, 468, 471 and

406 of IPC;

(vi) Complaints lodged by the customers alleging adoption of malpractices by the petitioner while acting as the Branch Head; and (vii) More than 50% of the advance portfolios of the said Branches had been turned into NPA category.”

6. Petitioner has submitted his reply to allegations by a letter dated 12.05.2025 wherein he has made explanation and denied alleged irregularities. In terms of Master Direction issued by RBI dated 15.07.2024, respondent bank has to follow a procedure prescribed thererin and accordingly matter was considered by a Committee viz. Zonal Office Committee for Classification of Fraud (ZOCCF) and accordingly, a report dated 04.06.2025 was submitted with a recommendation to declare the incident as fraud. On basis of aforesaid report, impugned order dated 04.06.2025 was passed whereby actions of petitioner were declared fraudulent under category of misappropriation of funds and criminal breach of trust and unauthorized transaction. For