Sanction of loan by probationary officers?

Tilak Marg Forum for Legal Questions Forums Service and Labour Laws Sanction of loan by probationary officers?

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    • #1079

      I am working in a rrb as a probationary officer. Bank forced me for sanctioning loan without any written order.couple of month ago some irregularities occurred while loan processing.now bank trying to make chargesheet or showcase against me.
      as per central vilegence commission letter probationary officer must not sanction or recommend loan. So if bank take any action , can I go legally against bank.

    • #1081

      Generally, it is not advisable to act on oral orders of seniors, especially when the oral orders are illegal, such as in your case when your seniors forced you to sanction loan when you were not eligible or allowed to sanction loan during probationary period, as you have stated.

      Your action of sanctioning loan would be in writing, for which there would be documentary proof. On the other hand, oral orders given by your senior would be verbal without there being anything in writing, and for which there may not be any documentary or other proof.

      So, you’ll have to given proof to show that you were forced to sanction loan by your seniors. You may have to defend yourself by whatever evidence or proof you can get in your defence.     


      Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.

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