Employee Left Without Notice After Taking a Loan: How Should HR Protect the Company?

I am working in a real estate firm. One of our employees has left the job without any intimation. However, this employee has taken a loan from the bank in the name of the company. What procedures should the HR department follow in this termination process to ensure the company's safety?

Send a show-cause letter through registered post with an acknowledgment card, stating why the company should not terminate you due to unauthorized absence for ___ days. If we don't receive a reply within the next 48 hours of the letter being received, you will be recorded as absconded.

Draft the letter with the above points, send it, and close the file.

Apart from what Mr. Stephen has mentioned, please elaborate on how an employee can take a loan in the company's name. Additionally, explain how this impacts absconding. If the loan is in the company's name, the company will repay it, and the authorized signatory may change.

Regards

Further to the clarification requested by Saji, I suggest you provide the FULL details of the case—especially since you work in the real estate sector, where things aren't done in a very straightforward way like they are in most other sectors. Otherwise, you are likely to receive suggestions based on incomplete information, which may affect the accuracy of the advice.

Regards,
TS