- (1.) The appellant was working on the post of Assistant General Manager in the Bihar State Financial Corporation (in short, "the Corporation"). At the direction of State Government, vide letter dated 20th March, 1993, the Managing Director of the Corporation, who is the Disciplinary Authority, put the appellant under suspension and initiated disciplinary proceedings on the following charges:- "1. He recommended release of Rs. 4.33 lakhs to M/s. Koshi Jute Mills Pvt. Ltd., Supaul against purchased machines without deducting the stipulated promoter's margin money, which is evident from the fact that the promoter's margin money was deducted in totality at the time of subsequent release of Rs.7.80 lakhs to the concern on 19.12.90. 2. He intentionally and in utter violence of delegated powers released Rs. 7.80 lakhs to the concern (M/s. Koshi Jute Mills Pvt. Ltd., Supaul) on 19.12.90 at his own for which he was not the competent authority for disbursing such amount at his own. This irregular act of his is a grave misconduct for his wrongful gain. 3. While making release of Rs. 7.80 lakhs to the concern (M/s. Koshi Jute Mills Pvt. Ltd., Supaul) in utter violation of delegated powers, he did not retain the 15% retention money according to stipulated conditions in the Sanction Order and mutual agreement between the promoter and the machine supplier. 4. While making release to the aforesaid concern he deliberately suppressed the facts regarding observations of the Vigilance and Grievance Cell dated 22.12.89 and mentioned that the dealing of machine supplier is genuine whereas observations of Vigilance and Grievance Cell duly approved by the M.D. available in the loan file shows that the machine supplier is not refunded and that of his connivance with the promoter. 5. He deliberately ignored the further observations of the Vigilance and Grievance Cell duly approved by M.D. to inspect the site of the machine supplier immediately and made release to the aforesaid concern. 6. He deliberately received the payment of Car Allowance for the period from 9.3.88 to 1.10.88 without having a car in his name during aforesaid period. 7. He purchased land at Patliputra Colony, Patna from Dr. Bindeshwari Prasad Singh through three different absolute sale deeds (Registered at Calcutta) showing himself as false profession without disclosing the source of fund arranged."
(2.) After serving the aforesaid memorandum of charges upon the appellant some additional charges were served, which are also set out below :- "He himself examined the proposal of Delhi based fake promoter of M/s. Divine Cycle (P) Ltd., Industrial Area, Fatwah on promoter's personal guarantee and placed the proposal with recommendation before the Board for sanction of loan to the Company when the residential addresses of promoters were incomplete and official address was subsequently found fake. He should have examined the proposal before recommending the case to the Board which he did not do so as a result the promoter managed to grab the fund from the Corporation and left the unit abandoned. Thus due to his negligence of duties in processing of the loan proposal the Corporation has been put to a huge financial loss. He, with an ulterior motive did not inform H.O. after getting the site jointly inspected with BICICO representative in Feb. '83 that the unit was running in a rented premises other than that of mortgaged to the Corporation and deliberately did not take any action against the promoter which proves his connivance with the promoter of the company to cause wrongful loss to the Corporation."
(3.) It appears that one officer of the State Government on deputation was made Enquiry Officer, who conducted the enquiry in respect of the aforesaid charges and submitted enquiry report holding that the majority of the charges have been proved. Consequently, 2nd show cause notice was given to the appellant which was duly responded. The appellant was then directed to be personally present for hearing and then the Managing Director, instead of passing final order, recommended the Board of Directors of the Corporation for the punishment to be imposed upon the appellant. On receipt of the said recommendation, the Board finally passed an order of dismissal of the appellant from service.;