Ensure prompt credit of deducted amount, Kerala State Road Transport Corporation told

File photo: Kerala High Court

File photo: Kerala High Court  

Deduction made from salary not credited to loan accounts

The Kerala High Court has directed the Kerala State Road Transport Corporation (KSRTC) to ensure that any deduction made from the salary of its employees towards payment of loan instalments is credited to the respective account of the financial institution concerned.

The court issued the order on a petition filed by P.T.Sanil Kumar, a driver, seeking a directive to the KSRTC to pay the entire amount deducted by the KSRTC from his salary towards payment of loan instalments to his creditor.

Breach of trust

The court observed that this was a case of breach of trust and misappropriation of the amount of a KSRTC employee. The KSRTC had recovered the amount from the salary of the petitioner. However, this amount had not been transferred to the accounts of the financial institutions. This was a criminal offence.

The court warned that if the KSRTC was not serious about its action, the court would have to direct the police to register a case against the managing director of the KSRTC. According to the petitioner, he had taken a loan of ₹70,000 from the KSFE and ₹3 lakh from the Kerala State Transport Workers Cooperative Society. Though the KSRTC had effected prompt recovery from his salary, the entire amount deducted had not been paid to the two financial institutions concerned.

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Printable version | Jun 5, 2020 4:22:57 PM |

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