Vigilance Compedium - CCL

Case Study -08
Lapses in processing of bank loan applications of the employees and deduction of
monthly installments from their salaries against the loans granted to them by the Banks
One complaint was received in the Vigilance Department CCL that a racket, consisting of
Officers and employees of one of the Collieries of CCL, Officers and employees of Computer
Section of the Area, and Officers of one of the leading Banks and some outsider (mediators)
was functioning at the said Area and certain amount was being deducted from the salary of
four employees against loans, which were actually not granted to these employees from the
said Bank .
On investigation, it was revealed that amount were deducted from the salary of four
employees of the said colliery against some loan granted by the Bank .Loan applications of
these employees appeared to have been forwarded by the Personnel Executive of the said
colliery to the Bank Authorities based on which loans were granted from the said Bank .It
was also observed that although the said Loans were disbursed in the month of January and
request for deduction was made by the bank vide a letter addressed to the Personnel
Executive in the unit, but the deductions started even before the loans were granted. It had
also been observed that the deductions were stopped by unit collieries.
It was further revealed that any deduction from the salary of any employee was possible only
with the involvement of either Dealing Assistants posted at the Colliery Level or the persons
assigned with the duty of entering the data submitted through input documents. However, the
data entered in the computer and their printouts did not bear the signature of the data entry
operator. Moreover, whatever printout had been given by the data entry operator, the same
was to be thoroughly scrutinized by the Dealing Assistants before sending the same for the
audit and payment by the Area Accounts. It was also observed that there was no system of
preserving the input documents at Computer Centre, of the Area.
As per the guide line issued by GM (P&IR) vide no. 1674 Dated 13.3.2003, CCL was not to
involve in any kind of loan and in no case recovery was to be made either from the
salary or the terminal dues of Employees against loans granted from any Bank.
In the subject case, amounts were deducted from the salaries of the respective employees
pertaining to the months of January, February and March and deposited to the said Bank
against loan granted from the said Bank, which was against the above said guideline of the
company.
Loans were granted on the basis of undertaking from drawing and disbursing officer (DDO),
who was one of the personnel executive of the Area. Though the loan application appeared to
have been forwarded by the Personnel Executive, the same had been received by the said
Bank directly through the concerned employee or his mediator and not through dispatch
section of the Colliery.