Admissibility of interest on gratuity allowed after conclusion of judicial/departmental proceedings.

1) Admissibility of interest on gratuity allowed after conclusion of judicial/departmental proceedings. - 1. Under the rules, gratuity becomes due immediately on retirement. In case of a Government servant dying in service, a detailed time-table for finalizing pension and death gratuity has been laid down, vide Rule 77 onwards. 2. Where disciplinary or judicial proceedings against a Government servant are pending on the date of his retirement, no gratuity is paid until the conclusion of the proceedings and the issue of the final orders thereon. The gratuity if allowed to be drawn by the competent authority on the conclusion of the proceedings will be deemed to have fallen due on the date of issue of orders by the competent authority. 3. In order to mitigate the hardship to the Government servants who, on the conclusion of the proceedings are fully exonerated, it has been decided that the interest on delayed payment of retirement gratuity may also be allowed in their cases, in accordance with the aforesaid instructions. In other words, in such cases, the gratuity will be deemed to have fallen due on the date following the date of retirement for the purpose of payment on interest on delayed payment of gratuity. The benefit of these instructions will, however, not be available to such of the Government servants who die during the pendency of judicial/disciplinary proceedings against them and against whom proceedings are consequently dropped. 4. These orders (paragraph 3) shall take effect from the 10th January, 1983. [G.I., Dept. of Per. & A.R., O.M. No. F. 7 (1)-P.U./79, dated the 11th July, 1979 and No. 1 (4)/Pen. Unit/82, dated the 10th January, 1983.] poTOP 1/30/2019 CHAPTER VIII http://persmin.nic.in/pension/rules/pencomp8.htm#Preparation%20of%20list%20of%20Government%20servants%20due%20for%20retirement 39/58 (2) Interest for delayed payment of Retirement/Death Gratuity to be at the rate applicable to GPF deposits. - [G.I., Dept. of Pen. & P.W., O.M. No. F. 38/34/2001/-P. & P.W. (F), dated the 29-4-2002]