Disciplinary authority's action was justified as the officer's misconduct in sanctioning loans without adherence to protocols caused financial loss to the bank.

JUDGMENT

R.POORNIMA, J.

This Writ Appeal is preferred against the order passed in W.P.(MD)No.8319 of 2012, dated 20.02.2023 and prayed to set aside the same.

2. The case of the appellants/respondents is that the appellants is a Grama Bank established for the purpose of catering to the women mostly living in Villages for the purpose of their upliftment. One such scheme was loans to Self Help Groups. The main object of the said scheme was to improve the women empowerment in the Country. The concerned Manager of the respective Banks are responsible to see that the loan be disbursed properly.

3. The respondent who was working as Branch Manager of Kallidaikurchi Branch of the appellant Bank failed to discharge his duties diligently, he had committed lot of irregularities in granting the loans. He violated the basic norms in granting the loans. Further taking advantage of the ignorance of the borrowers, he utilized the proceeds of the loans for his benefit and the benefit of few of his close relatives/associates. This affected the functioning of the bank and also resulting in huge losses to the Bank. An investigation was conducted into the irregularities committed by the respondent and a charge sheet consisting of 5 charges was issued to him on 15.12.2007 alleging misconduct in terms of Sections 16 , 17, 19, 42 and 38 of Pandyan Grama Bank (Officers and Employees) Service Regulations, 2001.

4. The charges are as set out as under:

Charge No.1:

Alleged violation of instructions in the sanction and disbursement of loan to Self Help Group PGB Malarmugam 58 – under Account No.SHG/29/07 in connivance with his own cousins namely, Sattanathan and Saravanan and mis-utilized the entire loan proceeds for personal gains.

Charge No.2:

Alleged act of accommodating one Tmt.Seethalakshmi for granting her number of loans, violating Administrative Office instruction and allowing her to unauthorisedly utilize the proceeds of Dairy loans and Joint Liability Group Loans granted in the names of various borrowers.

Charge No.3:

Alleged collection of money for processing fee and stamp and under the guise of purchasing gifts for depositors, demanded and accepted illegal gratification from Self Help Groups, while extending financial assistance to them.

Charge No.4:

Alleged engagement of M/s.Sattanathan and Saravanan, as Middlemen and fabrication of records for sanction of loans, to Self Help Groups Viz., PGB Malamugam 123, 22, 42 and 65 and further allowing them to embezzle loan proceeds disbursed to the above groups as well as loan instalments collected from the groups.

Charge No.5:

Alleged sanction of Dairy and JLG loans to persons and allowing Mr.Manickam, Appraiser in the Bank Branch to utilize the proceeds of the loan.

Thereafter, the respondent/writ petitioner filed his reply on 05.02.2008. Since the explanation offered was not satisfactorily explained, enquiry was conducted and the Enquiry Officer submitted his enquiry findings on 30.01.2010. The same was communicated to the delinquent (writ petitioner) and he submitted his further explanation to the enquiry officer findings. On 12.09.2011 final order was passed by the Chairman, thereby imposed punishment of dismissal awarded to the respondent/writ petitioner in terms of Regulation 38(1)(b)(v) of Pandyan Grama Bank (Officers and Employees) Service Regulations 2001. Against which the respondent/writ petitioner filed an appeal on 27.10.2011 before the Appellate Authority. The Appellate Authority confirmed the order of disciplinary authority and rejected the appeal vide order da