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2024 Supreme(Online)(Tel) 31161
IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
NAMAVARAPU RAJESHWAR RAO, J
P.T.M.Gopala Krishna – Appellant
Versus
Chief General Manager &Appellate Authority, SBI, Hyderabad – Respondent
WRIT PETITION No.13041 OF 2020
For the Appellants/Petitioners: Sri Prabhakar Sripada, Sri Arshad Ahmed
For the Respondents: Sri B.S. Prasad
Disciplinary authorities must ensure parity in punishment and comply with principles of natural justice, failing which decisions may be overturned.
Headnote:(A) State Bank of Hyderabad (Officers) Service Regulations, 1979 - Regulation No. 67(i) - Disciplinary proceedings - Petitioner challenged removal from service based on allegations of pressuring bank managers to issue fraudulent educational loan letters. The inquiry found the charges proved, leading to removal. (Paras 1, 2, 3, 33, 48)
(B) Natural justice - Parity in punishment - Differentiated treatment between petitioner and co-delinquents without cause undermines justice. (Paras 44, 46)
Facts of the case:
The petitioner was removed from service for allegedly influencing branch managers to issue fake educational loan letters. Disciplinary actions led to differing punishments between petitioner and involved managers, raising issues of fairness.
Findings of Court:
The court deemed the petitioner's removal disproportionate relative to co-delinquents and directed reconsideration of a lesser penalty, stressing natural justice principles.
Issues: Were the disciplinary procedures conducted fairly? Did the punishment reflect an appropriate response to the proven misconduct?
Ratio Decidendi: The discrepancy in punishment suggests procedural impropriety; notwithstanding proven misconduct, the disciplinary authority failed to adhere to principles of fairness, resulting in unequal treatment.
Result: Writ petition disposed, directing reconsideration of punishment.
| Table of Content |
|---|
| 1. disciplinary actions initiated due to alleged misconduct. (Para 4 , 5 , 6 , 7) |
| 2. credibility and evidentiary value of allegations. (Para 8 , 9) |
| 3. fairness in disciplinary proceedings. (Para 10 , 12 , 19) |
| 4. judicial review standards for disciplinary actions. (Para 20 , 21) |
| 5. emphasis on maintaining integrity in banking. (Para 22 , 23 , 32 , 37) |
| 6. need for proportionality in punishments. (Para 48 , 49) |
ORDER:
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 sanction letters sent by middle man named Sri Sagar to several students, thus passed pecuniary benefit to third parties.
(ii) You have sent such pre printed sanction letters through a middle man by name Sagar and pressurized the Branch Managers to sign the same in the pretext that there is no real financial loss to the bank and assuring that nothing will happen to anybody.
(iii) Your above acts not are in gross violation of Bank’s norms but also misguided, thereby cheated the Bank and International Educational Institutes and caused reputational loss to the Bank and Sovereign Nat
