Officials dealing in public money need to follow norms, says SC

Officials dealing in public money need to follow norms, says SC

TIMES NEWS NETWORK

New Delhi:09.02.2021

The Supreme Court on Monday said bank officers dealing in public money need to be vigilant and any deviation from the procedural norms for disbursing loans should be dealt with sternly.

While upholding the punishment of compulsory retirement for a bank manager, a bench of justices Ashok Bhushan, R Subhash Reddy and MR Shah said such misconduct is very grave and the punishment is lenient. “The manager of a bank plays a vital role in managing the affairs of the bank. A bank officer/employee deals with public money. The nature of his work demands vigilance with the inbuilt requirement to act carefully. If an officer/employee of the bank is allowed to act beyond his authority, the bank’s discipline will disappear. When the procedural norms are issued for grant of loans, officers/employees are required to follow the same meticulously and any deviation will lead to erosion of public trust on the banks,” it said.

In this case, the manager of Lakhimi Gaolia Bank had sanctioned and disbursed loans without following the due procedure. The inquiry conducted against him came to the conclusion that he disbursed loans irregularly in some instances to units without any shop/business. After going through the report, the bench said the punishment of compulsory retirement was not disproportionate and dismissed his plea.