Bombay High Court refuses to reinstate ex-RBI employee acquitted in fraud case

The Bombay High Court has declined to reinstate a former Reserve Bank of India employee who was cleared of a fraud charge, explaining that an acquittal in a criminal trial does not automatically overturn a penalty imposed during a separate internal inquiry. Justices R I Chagla and Farhan P Dubash ruled that the individual's dismissal was based on misconduct proven during a departmental inquiry, not his criminal prosecution, and thus his acquittal would not lead to reinstatement under RBI regulations.

The man, who served as a machine operator at the National Clearing Cell, challenged the RBI's July 2015 decision to deny his request for reinstatement, including back pay and benefits. He was fired in 2001 after a departmental inquiry found he was involved in a criminal scheme to defraud banks by tampering with cheques. Despite being acquitted of the criminal charges in 2015, his application for reinstatement was rejected.