Maker-Checker System Does Not Shield Bank Officer from Liability for Illicit Transactions: Delhi High Court

The Delhi High Court upheld the removal of a Bank of Baroda officer accused of unauthorised transactions and misappropriation through office accounts.

The Court held that the maker-checker system is only a risk-control mechanism and does not grant immunity to an officer who initiates unlawful or self-serving transactions.

It said an unauthorised transaction remains illicit even if later approved by a supervisor.

Rejecting claims of selective targeting and procedural lapses, the Court found no infirmity in the disciplinary proceedings and dismissed the petition.

[Sakshi Sharma v. UOI]