Indian Railways has warned employees to maintain financial discipline, cautioning that loan defaults resulting in court-ordered salary attachments could invite disciplinary action under the Railway Services (Conduct) Rules, 1966.
The advisory follows a rise in court cases involving railway employees who have defaulted on loans or acted as guarantors for borrowers who failed to repay their dues. According to a directive reviewed by ETV Bharat, the administration has expressed concern over the growing number of salary attachment orders issued for loan recovery.
Employees have reportedly defaulted on loans taken from private individuals and financial institutions. In some cases, they have borrowed money themselves, while in others, they have stood as sureties or guarantors for loans taken by third parties. When borrowers fail to meet their repayment obligations, lenders may approach courts to recover the outstanding amounts through salary attachments.
Railway authorities have cautioned that undisclosed financial transactions and defaults leading to legal proceedings could be treated as conduct unbecoming of a railway employee and may attract disciplinary proceedings.
The advisory also highlights the financial and legal risks of guaranteeing another person’s loan, noting that guarantors may face consequences if the primary borrower defaults. Employees have been advised to ensure that their financial commitments remain within their repayment capacity.
The increasing number of salary attachment cases has also created administrative challenges for railway establishments, which are required to comply with court orders for recovering dues from employees’ salaries. The directive underscores the administration’s emphasis on responsible financial conduct and compliance with service rules.
