Urgent Action on Post Office Fraud Recovery - DG DO Letter

Dear Shri Sawaleshwarkar,

I wish to draw your attention to a serious matter that has been noticed during the examination of various reports related to loss and fraud cases. The inordinate delay in the finalization of disciplinary proceedings against the principal offenders and recovery of loss from them, huge delay in identification of subsidiary offenders and finalizing action against them commensurate with the gravity of offences, etc. have resulted in huge unrecovered losses sustained by the department.

2. In this context, I would also like to reiterate the observations made by the Public Accounts Committee in its 84th Report (17th Lok Sabha) on "Misappropriation of Public Money in the Department of Posts." The Committee noted the sluggish pace of recoveries from fraudsters and emphasized that in addition to initiating disciplinary action against the erring employees, urgent and appropriate steps must be taken to recover misappropriated funds. It further recommended stringent punitive measures against officials, who failed to ensure the implementation of internal checks codified to prevent fraudulent activities in the operation of Post Office Savings Bank (POSB) schemes.

3. However, it is a matter of great concern that immediate and appropriate action under the Revenue Recovery Act (or similar provisions in respective States) is not being initiated against the main or co-offenders, even when they possess movable or immovable assets. In a majority of the cases, the actual recovery from the primary offenders has been minimal or negligible, despite their direct involvement in the misappropriation.

4. Further, in several cases, accountability appears to be placed on subsidiary offenders through recovery actions, often without adequate assessment of their actual contributory negligence. This not only results in avoidable litigation before judicial forums such as CAT and Courts, but also undermines the credibility of the disciplinary process. It may be recalled that this issue was addressed earlier vide DG (Posts) D.O. letter No. INV-17/18/2021-INV-DOP dated 29.11.2021.

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D.O. No. INV-17/18/2021-INV Date, 5th August, 2025

5. I would like to reiterate that all possible efforts must be made to recover misappropriated amounts from the main and co-offenders. The process of fixing responsibility, especially while identifying operational and administrative staff as subsidiary offenders, must be objective, evidence-based and grounded in clearly established lapses or proven instances of negligence. The assessment of contributory negligence must be commensurate with the actual loss caused due to their lapse, and not based on assumptions.

6. In view of the above, may I request you to take immediate measures for recouping the loss of public money as soon as a fraud is detected and to personally review all pending disciplinary cases within your jurisdiction and to take urgent steps to ensure their timely finalization. Further, it must be ensured that recovery proceedings are supported by a clear and reasoned assessment of contributory negligence and the revenue recovery measures are actively invoked, wherever applicable to recover losses from primary offenders.

7. This matter warrants your urgent and personal intervention, with particular emphasis on initiating recovery of misappropriated funds from the main and co-offenders through all legally available avenues, including action under the Revenue Recovery Act. Prompt and effective recovery is critical to ensuring accountability and restoring confidence in the integrity of the system.

Reyards

Yours sincerely,

(Jitendra Gupta)

Shri Ganesh V. Sawaleshwarkar,

Chief Post Master General.

Gujart Circle, Khanpur,

Ahmedabad - 380 001.