offence under preventation of corruption Act
Querist :
Anonymous
(Querist) 12 February 2010
This query is : Resolved
dear experts please provide your valuable suggestion on the following in respect of preventation of corruption Act.
the Managing Director of a public sector Bank misused his position by allowing two VIP Guest Houses (one at Mumbai and another at New Delhi) meant for official use of top exexutive of the bank for the personal use by his family members for more than two years.
in another instance He has arranged the banks BOD meeting at his choice place to facilitate the arrival bank's top executives and officers to attend his son Marriage.the meeting was previously scheduled to be held at Mumbai but subsequently he changed the meeting place to Hyderabad and also the date of the meeting so that bank official can attend the marriage in the name of BOD meeting at Hyderabad at huge bank's cost. whether these kind of abuse of position amount to offence under the preventation of corruption act ? pl advise
Raj Kumar Makkad
(Expert) 13 February 2010
Yes. Such types of the actions on the part of MD are definitely an abuse of power and allowing the misuse of official accommodation for the families of some individuals is definitely a matter which comes under the Prevention of Corruption Act.
B K Raghavendra Rao
(Expert) 13 February 2010
These are all administrative matters. Only the affected persons can air their grievance. If VIP guest house is misused to the detriment of use by eligible executives, then it amounts to misuse of office. Otherwise, if he makes payment for the occupation of the guest house by his family members, then it would not amount to misuse. Chane in venue and date of Board Meeting would not, for whatever reason if issued by the company secretary, does not come within the ambit of P C Act.
The Chairman at the Board Meeting may take up these issues and pass resolution to recover the losses, if any, and or warn the M D for exceeding his brief.
Feroz M Shafeeque
(Expert) 15 February 2010
13. Criminal misconduct by a public servant.
(1) A public servant is said to commit the offence of criminal misconduct, -
...
(c) If he dishonestly or fraudulently misappropriates or otherwise converts for his own use any property entrusted to him or under his control as a public servant or allows any other person so to do; or
(d) If he, -
(i) By corrupt or illegal means, obtains for himself or for any other person any valuable thing or Pecuniary advantage; or
(ii) By abusing his position as a public servant, obtains for himself or for any other person any valuable thing or pecuniary advantage; or
(iii) While holding office as a public servant, obtains for any person any valuable thing or pecuniary advantage without any public interest;
If the rent of VIP guest houses is subsidized, occupying it for non official purposes even after paying rent make loss to the bank as the actual expenses will be high. Otherwise it is only official misconduct and will not attract PC Act.
In the second case if it can be substantiated with evidence that the change in venue of Board meeting is meant for personal gains, it will attract PC Act.
Querist :
Anonymous
(Querist) 16 February 2010
Thank u Mr. Feroz, shri Raghavendra and shri. raj kumar Makkad. your suugestions are really helpful. I have obtained all the documentary evidences establishing the misuse of the BAnk's property through RTI Act-2005. the VIP Guest Houses at Delhi and Mumbai for more than two years have been allocated to MD's wife and son at rs. 20/-per day only while the actual cost in such cities are more than 1,000/-. secondly, the Board Meeting was also changed on the request of the MD through Fax message so that all board members and other Bank official can attend the meeting at banks cost. in Past 10 YEARS, no BOD meeting was conducted in this place, all the BOD meeting were held at the Head office of the bank. so, there is a clear case of abuse of position. so, dont such acts amount to obtaining pecuniary benefits by abuse of one's position ? Regards
