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I got appointed on compassionate ground after the death of my father in a central government organisation where my father use to work to help my family survive.My organisation started a private deduction in the name of cooperative bank in which my father was a member from my salalry without my permission and without giving me any intimation of such deduction .when I ask my organisation about this they said me to contact the cooperative bank and they just deduct the amount from whom the bank said. So I contacted the bank and they tell me that my father has a loan due on him which I has to settle as I got job on compassionate ground. After futher investigation I found that the bank has a rule in which the insurance cover and six guarantors are mandatory. When I ask the bank about why their is a loan due if these rule are followed by the bank then they refuse to give any clarification. I inform my organisation about the the whole case And then they give referrence to a statement mention in the loan form which state that after the death of loanee if the loan amount dues then it should be settled from the gratuity and PF of the deceased and futher if the amount is due then it should be deducted from the salary of family member got appointed in the organisation on compassionate ground without giving him any intimation. On the basis of this the bank is sending deduction to my organisation and my organisationi is blindly doing it without chechking the authencity and details of the matter.
Is it possible for a central government organisation to make such private deduction without employees permissiom?
Please suggest any solution to my problem I am facing finacial burden due to this.

From India, Kanpur

This was a condition of the loan granted by the Cooperative Bank and hence it has some force. Your organisation is bound by the advice tendered by the Bank and has to follow it, otherwise, it will be acting against banking regulations. So going to the organisation will not be of much help.
You have the option to approach the Civil Court of jurisdiction and seek a mandatory injunction against the recovery and try your chances.

From India, Mumbai

To my opinion this is absolutely illegal system. No loan can be adjusted from any employee's PF & Gratuity without any appropriate Court Order. Similarly , the loan of the father should not be deducted from Son's salary without the consent of the son or any appropriate court order.

Please take opinion from a good advocate and act accordingly. The agreement between Co-operative bank and the organization to my opinion is not valid in law.

S K Bandyopadhyay ( WB, Howrah)
CEO-USD HR Solutions

From India, New Delhi
Formally (By written), bank is aware about death?

What was loan type? Credit cards, EMI, Home loan, Secured/unsecured/insured loan?

The biggest mistake is bank formally not aware about death and they assume one is defaulting on loan.

Worry Not, simple solution:
You should send formal notice, copy to bank manager & appropriate authority, with death certificate of your father. Any decent lawyer can help you out for this in drafting (or you can also do on your own - but I advice let advocate also earn!

From India, Morvi

A loan taken by one person can not be recovered from other members of his family irrespective of whether the person is dead or alive. The only case where the family may be asked to pay is if the dead person has assets that were inherited by the said members of the family

The fact that you got a job on a compassion ground is immaterial in face of the law.
No agreement made between the company and the bank / coop society can bind you. The act of the company and the bank is illegal.

You need to take up the matter with both the organisation and the bank with the help of a lawyer.
You can also approach the Head Office (HR / IR / Compliance Officer) as well as RBI if the concerned coop is a bank. You can also approach the coop dept of the local government.

From India, Mumbai

The letter of authorisation made by the bank which my father signed states that after the death of the loanee the remaining due of loan can be deducted from gratuity and fund of the loanee and further if the amount dues than it should be deducted from the salary of family member apponited on compassionate ground.
Due to this authorisation letter the cooperative bank are sending deductions to my organisation and entirely on the basis of this the deduction from my salary is happening.
Can such agreement without consideration of the family member are valid or not?

From India, Kanpur

The agreement has no validity in law because a person can not bind someone else based on any condition to which the other party has not agreed. The only case where they can recover the loan from you is if you inherit property from him which is more than the value of the loan.

You need to approach a lawyer immediately and recover the money deducted fro your salary

From India, Mumbai

Is this not a repeated posting? Please see

In this context, I had posted the following suggestion:

"Such recoveries are improper are illegal in terms of e Central Government Account (Receipts and Payments) Rules, 1983.

Even otherwise, it is settled law that the liability of the legal heir for the debts incurred by the deceased is limited to the estate they have inherited. Appointment on compassionate ground does not count as 'estate inherited'.

However, it could be that some colleagues/friends/relatives would have been the surety for the loan availed of. If so, non-settlement of the outstanding amount is bound to complicate the issues"

From India, Kochi

Its a repeat post the OP is the same too
From India, Mumbai

Please give the exact act and clause so that i can mention It in my application .
From India, Kanpur
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