Saturday, March 2, 2019


                                    ALL INDIA POSTAL EMPLOYEES   UNION GROUP ‘ C’, 

                                                   Tamilnadu Circle, @ Chennai – 600002

  President                  Advisor                                 Circle Secretary               Cir.Fin.Secretary    
P3/ 23/ Erode                                                                                                                    Dated:27.2.2019

The Chief Postmaster General,
Tamilnadu Circle,
Chennai 600002


Sub: Misusing of quasi-judicial powers and ordering recovery against the innocent officials who are not directly responsible in the Huge Frauds taken place at Sivagiri PO in Erode Postal Division.

                It is brought to our notice that at Sivagiri Sub Post office under Erode Head Post office, there was a fraud committed to the tune of Rs.69, 00,000/- by Sri.N.P.Saravanan who has been dismissed from Service without effecting recovery of the loss sustained to the Department either from him or taken action to confiscate the movable and immovable properties of him and his blood relations.

                The fraud took place with the connivance and collusion of divisional head and some of the officials who were been scat free and the innocents who are not at all directly responsible are being targeted. As per the assurance of Sri.N.Mylsamy, GDS Sivagiri, his second wife Smt.Krishnaveni was transferred back to Sivagiri SO on 08.06.2016 which undoubtedly revealed the nexus between Sri.N.Mylsamy and Sri.Gurunathan the then SSPOs, Erode Division.It is undoubtedly vitiatessuspicion due to the irregular transfers issued by the SSPOs which were on obvious considerations.If an enquiry is ordered on the transfers issued by him many hidden skeleton rolled in the cupboard will come out. It is pertinent to mention that the same SSPOs while holding charge at Coimbatore division credited an amount under UCR towards contributory negligence fixed with respect to one fraud case occurred in Thadagam SO during his earlier tenure as SSPOs Coimbatore.

Even before this transfer on 08.06.2016, Smt.Krishnaveni was repeatedly deputed/transferred to Sivagiri SO against the rules by the then SSPOs under the instigation of her husband Sri.N.Mylsamy.It is strongly felt that the successful fraudulent premature closures of MIS/TD/KVPs and the irregular transfer of Smt.S.Krishnaveni to Sivagiri SO had comfortably facilitated the occurrence of the above fraud. The Erode DivisionalJCA submitted a memorandum to Smt. Sharada Sampath, then PMG Western Region on 10.04.2017 citing all the irregularities committed by him which is the root cause for the fraud, but to the unfortunate that the fate of the disposal of the memorandum is not known,

Even before commitment of above frauds at Sivagiri SO , Sri.N.P.Saravanan committed frauds at Pasur SO also. Sri.S.Muthusamy who was the Sub Divisional ASP for both the Pasur So and Sivagiri SOhas not carried out the second inspection as ordered by the SSPOs and the wilful act of the ASPOs has given vigour and strength to the fraudulent official further which is the main root cause of the fraud.Even before the outcome of cent percent verification he was transferred to Sivagiri SO as PA and subsequently ordered to work as SPM , Sivagiri SO which paved him way for committing fraud to a huge extent In order to settle the fraud amount of Pasur SO earliercommitted  by him.If the cent percent verification would have carried out in time, the above frauds could have been totally averted.

A CBI enquiry was ordered for investigating the fraud case at Sivagiri SO. On enquiry, the CBI held, that the above Sri.N.P.Saravanan , Sri.N.Mylsamy , Sri.R.Subramaniam and Sri.N.Uma maheswaran are the culprits.Also the above  four officials have given a confession in writing on a Rs.20/- bond paper that they have actually defrauded the amount and were willing to repay the defrauded amount.The divisional unions have already submitted a memorandum to the Postmaster General, Western Region, Coimbatore and to the SSPOs Erode division to recover the defrauded amount from the prime offenders and co-offenders by confiscating their assets.The PMG,Western Region assured earlier that the culprits only would be punished and the innocent officials would not be taken to task under the guise of contributory negligence.  It is most apt to mention that the penal interest has been accumulated to a large amount due to the non-settlement of claims of investors then and there by the administration for which the divisional administration is solely responsible.

It is learnt that contrary to the above assurance, a sum of about Rs.5,00,000 /- [Rupees Five Lakhs ] was recovered from the following officials on contributory negligence factor without evincing any efforts to recover the amount from the main offender.
1.       Sri.M.P.Thangavelu, PA[Retd] SBCO
2.        Smt.K.Selvamani, PA [Retd]
3.       Sri.P.Parameswaran  Mail Overseer [Retd]
4.       Sri.U.P.Sivakumar, then Mail overseer
5.       Sri.T.V.Ragavan , PA
6.       Smt.P.Sajna, PA,
7.       Smt.B.Kanchanamala , PA [Retd]
8.       Smt. Dhanalakshmi ,  PA and
9.       Sri.P.Kumar, APM.
10.   Smt.Sasikala, PA, SBCO.
Moreover the divisional administration issued charge sheets to six officials now on flimsy reasons as if they have not verified the signature in the daily account and non-issue of reminders to the ASPOs,and in particular without citing the rules of deviation with the sole intention to recover the defrauded amount from the innocent officials which  are as follows.
(i)                  Charges were framed without linking as to how the lapse had contributed to the occurrence of the fraud.
(ii)                Failure to check the genuineness of the Signature of the joint Custodian in the SO daily Account by the Sub Account PA in Erode Head Post office.
(iii)               Non Arrangement to withdraw year type/Cancellation date stamp of Sivagiri SO for the previous year by the stock branch OA of Divisional office
(iv)              Supply of Passbook / KVPs in excess of the authorised limit during drive period though it was ordered by the Divisional office.
(v)                Notwatching the delayed /non-receipt of SMRs from SOs [through HO] by the L Branch OA of Divisional office.
(vi)              Those officials who went deputation to sivagiri SO have been Charged to why didn’t they claim to work in SB Branch / SPM  / Joint Custodian when the deputationist worked in the branch under the specific orders of the SPM, Sivagiri SO.
(vii)             SB OA of Divisional office was questioned as to why she has not monitored the finacle user Ids even though the SO was not even migrated to Finacle on that date.
(viii)           One PA candidate [not at all worked in HO] was questioned to why she had not checked the genuineness of the signature of joint custodian in the SO Daily Account as a Sub account PA at Erode HO.
(ix)              As per Dte. Order, the power of role assigning for SUPERUSER is vested with the SPM itself. But the SA of the Sivagiri SO was questioned as to why he has not allotted the same with a view to fix  Contributory negligence.[Even though no fraud was committed by using SUPERUSER & DESUPER login in Sanchay Post-Data Entry]

Thus, the divisional administration is now misusing the quasi-judicial powers in framing charge sheets with the flimsy and fabricated reasons just to protect the officers who were held responsible for the loss sustained to the department and also the officers who failed to initiate action to confiscate the properties from the mail culprits. The major lapses on the part of the officers have not been taken note of and their inactionand procrastination were simply brushed aside and some of the examples are furnished hereunder.

i.                     On 30.08.2013 then SSPOs G.Gurunathan and then ASPOs [Hq] G.Balaji paid a surprise visit to Pasur SO and found out the below irregularities.
§  16 nos of NSCs of Rs.100/- denomination which were already shown as issued in the name of N.P.Saravanan then SPM, Pasur So himself were found blank and no NSC applications were also not available.This serious irregularity was not probed at all with seriousness it deserves. Had this lapse being thoroughly inquired into, his ulterior motive could have been nipped in the bud itself and further certificates frauds to the tune of Rs.17,00,000/- [rupees Seventeen lakhs ] thereafter at Sivagiri SO by the same Sri.N.P.Saravanan could have been averted.
§  The then ASPOs [Erode South]Sri.Muthusamy have not submitted the Cent Percent Verification report for Pasur SO till date.

§  About 129 passbooks were debited in Passbook stock were not issued and kept blank. This was also not inquired thoroughly. This grave lapse on the part of the Divisional administration had emboldened Sri.N.P.Saravanan to commit TD frauds to the tune of Rs.9,00,000 [Rupees Nine Lakhs] in Pasur SO and thereafter Rs.38,00,000 [Rupees Thirty Eight lakhs] at Sivagiri SO.

§  The then SSPOs G.Gurunathan and ASPOs [hqtrs] G.Balaji have not verified all the TD PBs standing opened at the single handed SO [ie.Pasur SO] during their visit  which they would have been done at that time itself as envisaged in Rule no.149 in  Postal Savings Bank Manual  Vol – I. If they would have done cen percent verification wrt TD accounts at Pasur SO, the further fraud at Pasur SO and Sivagiri SO would have been averted.
§  There was a Discrepancy in the payment of monthly interest in one MIS account under no.6225542 available in the PB and Sanchay Post software.This serious irregularitieswere not dealt thoroughly by the then SSPOs Sri.G.Gurunathan and ASPOs Sri.G.Balaji. Thisled to the further MIS /TD PMC  frauds to the tune of Rs.12,00,000 [Rupees twelve lakhs] thereafter in Sivagiri SO by Sri.N.P.Saravanan.

§  The ASPOs so far visited Pasur SO and Sivagiri SO failed to carry out the inspection properly and thereby to detect the fraudulent activities. It is also learnt most of them marked that the final remarks of the inspection / visitreport generally as SATISFACTORY which is contradictory to these frauds in Pasur SO and Sivagiri SO.

From the above the real subsidiary offenders are the officers who held charge at the time of fraud and they are being scat free and there is no action to recover the amount from them. Whereas the innocent officials have been charge sheeted to make them as scape goats on flimsy lapses on the part of OAs divisional office, PAs, Erode HO have been cited for contemplating action under contributory negligence.There is no rationale behind the ordering the recovery of huge amount from the innocent officials under the guise of contributory negligence.

It is crystal clear vide DG P&T No. 6-8/59-Disc dt. 09.07.1959 that there should not be any attempt to somehow or other effect recovery from officials who are guilty of only minor omissions.Extenuating circumstances shall be given due weight.Pecuniary responsibility need not be fixed for mere routine and petty lapses. For effecting recovery, negligence should be such as has been the direct cause for the loss as per D&T No. 15-9/74-INV dt. 10.02.1975.

                In accordance with the DOPT OM No. 11013/10/93-estt (A) dated 06.10.1993,if a Government servant is found to misuse his official position or to abet and connive at improper and illegal acts, he would render himself liable for disciplinary action for violation of Rule 3 of the CCS (conduct) Rule 1964. In this episode the divisional heads and the sub divisional heads are solely responsible and solely misusing their position to protect the culprits and prosecute the innocents. In this case the divisional head and the sub divisional heads are misusing the official position and also the present initiation of charges against the innocent officials is nothing but misusing the quasi-judicialpower.

                The Supreme Court of India held in the case of Duli Chand vs UOI under 680 of 2006 that in the departmental enquiry, when an officer who exercised quasi-judicial powers acting negligently or recklessly could be proceeded against by way of disciplinary action.
It is therefore requested to ensure action on the following
(1)    To drop the charges framed against the innocent officials on flimsy and fabricated reasons under the contributory factor
(2)    To arrange sale of wealth amassed by the culprits and to credit the proceeds to the department thereby reducing the lost to the Government.
(3)    To take into account of theserious lapses on the part of the administration and to make thorough inquiry over the lapses at Pasur SO which has contributed to the occurrence of fraud at Pasur SO and continuation of fraud at Sivagiri SO. They should be held responsible and declare co offender and recover the amount from them.
(4)    To exclude the amount of fraud committed by non-credit in TD accounts and the issue of KVPs through Xerox copies as nowhere the officials were involved/related to this fraud and no onus of responsibilities lie with the official and the cases must be dropped.

In the event of no action, the circle union will launch circle wide agitation. It is therefore requested to kindly bestow your intervention and cause orders to drop the charge sheets against the innocent officials and cause appropriate action against the officers who are held responsible and directly contributed to the fraud. It is further requested to control the wrong exercise of the quasi judicial power in this case by the SSPO, Erode division.

A Line in reply about the action taken is highly solicited.

Yours faithfully,
Circle Secretary