‘Frauds in financial institutions should be dealt with sternly’

Bengaluru: Any fraud, however negligible, associated with a financial institution has to be viewed very seriously and dealt with sternly said the Karnataka High Court.

The High Court made the observation while upholding the decision of dismissal of a bank employee for fraudulently withdrawing money from a customer’s account.

A division bench headed by Chief Justice Ritu Raj Awasthi and comprising Justice Sachin Shankar Magadum made this observation while hearing a petition filed by a bank employee challenging the single bench order on his dismissal.

The single judge had set aside the order of the Central government industrial tribunal-cum-labour court on January 19, 2007 which revoked the decision of dismissal of the employee.

The employee had opened a savings bank account for the customer he knew and deposited money for him. That customer had later complained to bank authorities that the accused is withdrawing money from his account.

The court had passed the order on the findings in charge sheet that the accused bank employee had given a written submission that as he was under financial strain, he was compelled to withdraw money fraudulently. Upholding the order of the single bench, the court observed that frauds by bank employees has become a global problem.

It also observed that there has to be no tolerance to an employee of a fraudulent nature as he constitutes an attack against the organisation from within, by the very people who are entrusted with protecting its assets and resources.

The order was passed on November 15 but made available now only.