Jammu Kashmir HC Allows Government To Proceed With Inquiry Into Rupees 57.72 Lakh Copper Embezzlement Case

J&K-Ladakh HC permits govt to continue disciplinary proceedings for recovery from pension benefits against ex-store officer in copper embezzlement case, despite his retirement.

Srinagar: The government can now proceed with disciplinary actions against a former store officer of the Lower Jehlum Hydel Project (LJHP) in a copper embezzlement case valued at Rs 57.72 lakh, according to the High Court of Jammu and Kashmir and Ladakh.

On Tuesday, a Division Bench made up of Justices Shahzad Azeem and Sindhu Sharma overturned a 2023 single-judge ruling that had dismissed the investigation into the 2012 disappearance of copper bars from the project store, which was attributed to Aftab Ahmad Malik, a former LJHP store officer.

The Bench noted that disciplinary actions were correctly started prior to Malik's retirement and granted Letters Patent Appeal No. 197 of 2023, which was submitted by the Union Territory of J&K, senior officials from the Power Development Department, and JKSPDC.

The investigation began in 2012 when copper bars disappeared and a formal complaint was filed at Police Station Boniyar under Sections 380 and later 409 of the Ranbir Penal Code. A number of departmental committees were established, and Malik and others were suspended.

In 2016, a Boniyar judicial magistrate dismissed Malik due to a lackluster investigation; yet, the company proceeded with internal procedures. Malik's retirement date was July 31, 2017.  The writ court dismissed the investigation in June 2023 and mandated that Malik's withheld retirement payments be released.

The Division Bench did observe, however, that he had received a written charge sheet in March 2013 that allowed departmental procedures to continue beyond retirement under Article 168-A of the J&K Civil Service Regulations (1956), but only for the purpose of determining monetary damages.

The court made it clear that the government still has the authority to recoup losses from pensionary benefits, even if retired officials cannot face severe penalties like termination. Until the investigation is finished, Malik is still eligible for an interim pension under Article 168-D.

Citing decisions from the Supreme Court, the judges also underlined that the government may still continue departmental proceedings on the same charges if a criminal case is acquitted. Consequently, Malik's writ petition was denied, the appeal was granted, and the June 16, 2023 order of the sole judge was overturned.