If the staff misappropriates the money and absconds - adjust the amount from the security deposit and the salary?

Sir, Our sales staff do door to door collection of EMI and deposit the same with the branch on the same day . They have a TAB instrument for collection of EMI and disbursement of Loan. Since the instrument is costly , they keep a nominal amount as security deposit for the same , with us .
If the staff misappropriates the money and absconds then can we : adjust the amount from the security deposit and the salary payable to him?
what will be recourse if the misappropriation comes to light after he has left the organisation

Adjusting company money from the security deposit and salary payable is the recourse the company has to ultimately do. But if misappropriation of company fund comes to light, proceed and initiate disciplinary proceedings also. Conduct domestic enquiry and award punishment, till such time
suspend all amounts payable to him by the company.
If the asset value of company is higher than the amount payable to employee (security deposit, salaries, payment of allowances etc), what will you do?
Once enquiry is completed and obtain report from the Enquiry officer, you can proceed to initiate legal action/file a suit in the appropriate Court of Law for recovery of amount with penal interest.

Dear ANNONYMOUS Friend,
I agree with P Radhakrishnan Nair.
You can not adjust the amount so called by you as misappropriated from the security kept and salary due, unilaterally.
You say that the staff has misappropriated. But you have to prove it. You have to give an opportunity to the staff to be heard by following principal of natural justice.

Sir
our audit team has conducted enquiry and have given report on the same detailing the amount misappropriated .
Post this we have discussed the same in our disciplinary commitee meeting .
However , the employee has absconded . Hence we are unable to recover the amount from him .
in our industry , employees leave the job without information / serving notice period.
what is the recourse now .

Enquiries by Audit Committee, Disciplinary committee, etc are only internal enquiries. That is good, Collect their findings/report and document it. But you need to initiate domestic enquiry by appointing an Enquiry officer (a registered legal practioner) and seek his report also. There are few procedures also before initiating domestic enquiry.
If the delinquent employee did not turn up for participating in the enquiry procedure, you can hold the enquiry ex-parte (this is to be decided by Enquiry officer).
Thanking you.

Dear ANNONYMOUS Friend,
It seems to me you need to higher a legal adviser to deal with this issue rather than taking advise from such forum. Our friend Nair advised you correctly. You have to follow that.
It seems you are from Mumbai. If you are willing to higher the services of any legal adviser then you can write at [Login to view]

Dear
Procedure of domestic enquiry is entirely different and the same has to be conducted in accordance with settled principles of natural justice. Fir detailed advice / opinion, you can contact me.

Aduit (Tallying, investigating etc) is different and Can Never Be Equated with the Disciplinary Inquiry consisting of Prima facie Preliminary Inquiry and or Final Domestic Inquiry

Since youallege that the said Employee is Absconding with the Instrument issued to him by his Employer, you must Proceed with Issuing him a Proper Show-Cause/ Charge-sheet alleging Theft of Compnay's Property ( the Instrument) and Post the same Charge-Sheet in closed Enveleope, by Regd Post AD at his Present Postal Address & Permt Home Address as per Co's Records asking him to Explain WhyDisiplinary Action including Punishment should not taken for his Misconduct, you may also inform that an FIR would nbe Lodged against him for the said Theft, Hold Domestic Inquiry before Punishment is Awarded.

The Practices or Precedence you quoted is Not the Law or above the Law, hence proceed as prescribed in the Laws. Make Haste Slowly

Kritarth Consulting , 18.7.2020

The entire amount can be adjusted against any money payable to the staff member or if he has deposited security deposited. however legal formalities to be completed to prove that he has swindled the money.