HC halts terminal benefits to EO facing graft charges

The Madras High Court today directed Municipal Administration authorities not to disburse terminal benefits to a town panchayat's Executive Officer facing charges of misappropriation of Rs 30 lakh of panchayat funds.
Admitting a petition by Vice-Chairman of Panamarathupatti Town Panchayat in Salem district K Balachandran, vacation judge Justice S Vaidiyanathan allowed EO P K Madaiyan to retire but directed the authorities not to disburse his terminal benefits until further orders.
The petitioner sought a direction to authorities restraining them from allowing the EO to retire on May 31 till an amount of Rs 30 lakh allegedly misappropriated by him was recovered.

The EO was suspended on October 6, 2008 after an audit found the misappropriation. "There are 28 audit objections pending against the EO totaling to Rs 33.53 lakhs and he has not even submitted his explanation for the charge memos till date," he said.
The petitioner alleged that by using money power and influence, the EO was trying to obtain a no-objection certificate for his retirement.