BENGALURU
The Karnataka High Court has upheld the dismissal of a State Bank of India senior assistant accused of misappropriating customers’ money, stating that such actions damage public trust in the banking system.
The court cancelled the Labour Court order that had earlier set aside the employee’s dismissal and directed his continuation in service. A division bench observed that banking operations depend completely on customer confidence and employees must maintain honesty, discipline, and responsibility while handling public money.
The case involved K. Nagareddy, who worked as a senior assistant at SBI branches in Tumakuru and Ballari during 2003-2004. He was accused of using money given by customers for loan repayments and other deposits without crediting it to their bank accounts. After customer complaints and an internal investigation, the bank found him guilty and dismissed him in 2006. The employee challenged the decision before the Labour Court, which later ordered his reinstatement with back wages. SBI approached the High Court against that order.
The High Court noted that the employee had admitted his mistake during the investigation and said the Labour Court had failed to properly consider the evidence. However, the court directed SBI to pay eligible gratuity, leave benefits, and retirement dues with legal interest within two months. It clarified that the dismissed employee would not receive pension benefits due to the termination from service.