Chennai: Holding that the failure to protect government fund amounts to misconduct by officials, the Madras high court said such officials are also certainly liable for prosecution for their negligence, dereliction of duty and for causing loss to State Exchequer.
Disposing of a petition filed by K. Balachandran, Vice Chairman, Panamarathupatti I Grade Town Panchayat, Salem District, Justice S.M Subramaniam said, “If an employee made a financial loss, the first action would be to recover the loss caused to the State Exchequer. The second action would be to initiate disciplinary proceedings and criminal prosecution if necessary under the provisions of the Rules and the Laws. Mere pendency of the disciplinary proceedings or criminal case would not preclude the authorities from recovering the loss occurred to the Town Panchayat or to the State Exchequer.”
The petitioner sought a direction to the Secretary, Municipal Administration & Water Supply Department, Director of Town Panchayats and Director of Vigilance & Anti-Corruption, for a direction to recover '33.53 lakh from P.K. Madhaiyan, Executive Officer Jalakandapuram Town Panchayat, Salem.
“The financial loss caused to the Town Panchayat is to be recovered by the authorities from the persons, who all are responsible for such financial loss to the Town Panchayat,” the judge said.
He added, “The competent officials must recover the financial loss from the persons concerned without any delay. In the event of not effecting recovery by such officials, then the State shall initiate appropriate action against the superior officials and recover the same from their salary. Not protecting the funds of the State Exchequer is also misconduct and if higher officials fail to initiate appropriate action for the recovery of the financial loss caused to the Town Panchayat or to the State, then such officials are also certainly liable for prosecution for their negligence, dereliction of duty and for causing loss to the public funds.”
