Mal Practice

Dear Vinaa,
Simply, if you have the authority to stop the re-embers payment, don't pass the same.
Tell him the truth in written in the form of Warning Letter.
Tejas Chikshe
Asst. Manager - HR & Admin

if the amount sancationed and spend amount is within the limit. If he has done a good job then other things are secondary.
raghunath.

Veena, This is a serious malpractise with the aim of defrauding the company. Only TERMINATION is the punishment. In case, he is not terminated, henceforth every person will submit false bills and set this as an precedent example. You will never be able to enforce discipline in your company. Choice is yours..........

You can give him an verbal warning. However if you want to some official action, you can ask him to give in written that why did he do so or this will not be happen in future...
Regards
Rakesh