Banking System backbone of Indian Economy: Delhi HC upholds ex-RBI officer’s dismissal over financial irregularities

The Delhi High Court recently observed that the banking system is the backbone of the Indian economy. Court further held that an officer who is found to have engaged in financial irregularities while performing his duties as a bank officer cannot be excused, even if the infraction is minor in the inquiry report.

“In the departmental inquiry, the standard of proof is not that of a criminal case i.e., beyond a reasonable doubt, rather the test applicable is that of merely the preponderance of probabilities”, the court noted regarding the instant case.

Justice Chandra Dhari Singh said, “As goes the popular saying – “Caesar's wife must be above suspicion”. It is settled law that honesty and integrity of employees/officers working in the banks who are dealing with public money must be paramount.”

Noting that a bank employee/officer must perform his or her duties with complete devotion, diligence, integrity, and honesty to maintain the public's/depositors' trust in the bank, Justice Singh upheld a bank officer’s dismissal order over financial irregularities.

The single-judge bench was hearing a plea filed by Vijay Kumar Gupta, working as an Assistant Manager at the Reserve Bank of India.

Gupta was posted at the Currency Verification and Processing System (CVPS) of the Issue Department and in 2015 was entrusted with processing and shredding of currencies worth Rs. 4,50,000. A shortage of 50 pieces of Rs.100 denomination in three packets was discovered during a surprise check of the canceled notes brought for shredding in the shredding room.

Consequently, two alternate charges were filed against Gupta for willfully failing to perform his duties to the bank and surreptitiously abstracting/pilfering the said currency notes for monetary gain while displaying gross negligence. Following the disciplinary investigation, the charges against Gupta were found to be proven, and he was dismissed from the bank's service, and Rs.5000 was ordered to be recovered from him.

Court noted that the allegations leveled against Gupta were unquestionably serious, amounting to gross misconduct. “Therefore, I do not find any force in the argument of the petitioner that the punishment which has been awarded to the petitioner for removing from service is not proportionate”, the judge said.

Accordingly, while dismissing the RBI officer’s plea, the court held, “In view of the above discussion on facts as well as law, this Court does not find that there has been any procedural infraction or violation of Principles of Natural Justice in conducting the inquiry against the petitioner. It is also decided in the foregoing paragraphs that there is sufficient material on record to establish the guilt of the petitioner.”

Case Title: Vijay Kumar Gupta v. Reserve Bank of India & Ors.