Dear Mamatha,
Which industry are you from? In which part of India is your company located? I am asking these questions because, more than a policy on employee termination, you need standing orders as per the regulations of your state. If you obtain approval for the standing orders, you can terminate an employee based on their misconduct.
Even without standing orders, you may conduct a domestic inquiry for each instance of misconduct and proceed with terminating the employee.
Thanks,
Dinesh Divekar