G.O. to stop P.F. even after retirement of 498a Public/Govt. Servant (out-laws or in-laws)

Circular Memo.No.3026/18/A2/Pen.I/99 Finance & Planning (FW.Pen.I)Dept., dated 1-6-1999 : Disciplinary proceedings under Rule 9 of Revised Pension Rules, 1980 can continue after retirement even where there is no pecuniary loss to Government 

                             Subject Heading: Retirement — continuation of proceedings
                                                                   *****
According to sub-rule(1) of rule 9 of the A.P.Revised Pension Rules 1980, inter-alia, empowers the Government reserves to themselves the right of withholding pension or gratuity or both, either in full or in part, or withdrawing a pension in full or part whether permanently or for a specified period and of ordering
recovery from a pension or gratuity of the whole or part of any pecuniary loss caused to the Government if in any departmental or judicial proceedings the pensioner is found guilty of grave misconduct or negligence during the period of his service including service rendered upon re-employment after retirement.

2. The Government have been receiving representations seeking clarifications whether disciplinary proceedings pertaining to a serious or grave misconduct or negligence committed by a Government Servant can be continued or instituted in terms of rule 9 of the A.P.Revised Pension Rules, 1980 even if no pecuniary
loss was caused to the Government. Cir. No. (3419)

3. According to Ruling 8 under rule 9 of the Central Civil Services (Pension) Rules, 1972, action can be taken under Rule 9 of the Central Civil Services (Pension) Rules, 1972 (Similar to Rule 9 of Revised Pension Rules 1980) and as per the clarification issued by the Government of India, Department of Pension and
Training in O.M.No.28027/3/87-Estt(A), dated 29-6-1990 even in the absence of any pecuniary loss to Government, the pension of the pensioner can be withheld or withdrawn after following due procedure for an act of misconduct or negligence committed while in service.

4. The Supreme Court of India, in the case of ‘Union of India and others vs. B.Dev, AIR 1998 SC 2709, while explaining the scope of rule 9 of the Central Civil Services (pension) Rules, 1972 observed as follows:-
“Rule 9 gives to the President the right of 1) withholding or withdrawing a pension or part thereof; 2) either permanently or for a specified period; and 3) ordering recovery from a pension of the whole or part of any pecuniary loss caused to the Government. This power can be exercised if, in any departmental or judicial proceedings, the pensioner is found guilty of grave misconduct or negligence during the period of his service. One of the powers of the President is to recover from pension, in a case where any pecuniary loss is caused to the Government, the Loss. This is an independent power in addition to the power of withdrawing or withholding pension. The condition of the respondent, therefore, that Cir. No. (349) Rule 9 cannot be invoked even in cases of grave misconduct unless pecuniary loss is caused to the Government, is unsustainable”.

5. In view of the clarification given by the Government of India, Department of Pension and Training and the rulings of the Supreme Court, the Government hereby clarifies that disciplinary proceedings pertaining to a serious or grave act of misconduct/negligence committed by a Government Servant can be continued or instituted in terms of Rule 9 of Revised Pension Rules, 1980 or other corresponding rules, even if no pecuniary loss was caused to the Government.