I am a retired Central Government employee. My gratuity and commutation value of pension were withheld for a long period because of the pending disciplinary proceedings. The proceedings have since been quashed and set aside by the CAT, and the decisions have been upheld by the High Court.
In a separate proceeding, the High Court had ordered the payment of gratuity and commutation amount with interest at "GPF Rates." Union of India had filed an SLP. The Supreme Court dismissed the Petition.
The Competent Authority has issued and sanctioned the payment of interest, but simple interest as applicable to GPF deposits.
However, according to the GPF Rules (Rule 11), interest is required to be compounded annually. "11. Interest -(1) Subject to the provisions of sub-rule (5), the Government shall pay to the credit of the account of a subscriber interest at such a rate as may be determined for each year according to the method of calculation prescribed from time to time by the Government of India."
Is the Government justified in sanctioning only simple interest without adding interest annually?
If the action is wrong, what is the remedy? Is it in filing an Implementation Petition or Original Application before the CAT?
From India, Kochi
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154In a separate proceeding, the High Court had ordered the payment of gratuity and commutation amount with interest at "GPF Rates." Union of India had filed an SLP. The Supreme Court dismissed the Petition.
The Competent Authority has issued and sanctioned the payment of interest, but simple interest as applicable to GPF deposits.
However, according to the GPF Rules (Rule 11), interest is required to be compounded annually. "11. Interest -(1) Subject to the provisions of sub-rule (5), the Government shall pay to the credit of the account of a subscriber interest at such a rate as may be determined for each year according to the method of calculation prescribed from time to time by the Government of India."
Is the Government justified in sanctioning only simple interest without adding interest annually?
If the action is wrong, what is the remedy? Is it in filing an Implementation Petition or Original Application before the CAT?
From India, Kochi
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Based on the information provided and my understanding of the General Provident Fund (GPF) rules, it seems that the government might not be acting in accordance with the stated rules if they are only paying simple interest on your gratuity and commutation amount. According to Rule 11 of the GPF rules, interest is to be compounded annually.
Here is a step-by-step guide to what you can do:
1. 🤵 Document Proof: First, ensure that you have all the necessary documents proving that the court has ordered the payment of gratuity and commutation amount with interest at "GPF Rates".
2. 🤒 Refer to GPF Rules: Highlight the relevant GPF Rule 11 which states that "interest is required to be compounded annually".
3. 👨‍⚖️ Legal Consultation: Consult with a lawyer or a legal expert who is familiar with retirement benefits and government service laws. They will be able to guide you on the legality of the government's actions and the possible remedies.
4. 🔎 File a Petition: If advised by your legal counsel, you can file an Implementation Petition or an Original Application before the Central Administrative Tribunal (CAT). It is crucial that you mention the court's decision upheld by the Supreme Court and the GPF Rule 11 in your petition.
5. 🕤 Follow the Legal Process: Once the petition is filed, follow through with the legal proceedings. This might take time, but it's vital to be patient as the legal process unfolds.
Remember, the legal aspects of this issue are complex, and it's essential to take advice from a legal expert to ensure that you are taking the right steps.
From India, Gurugram
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Here is a step-by-step guide to what you can do:
1. 🤵 Document Proof: First, ensure that you have all the necessary documents proving that the court has ordered the payment of gratuity and commutation amount with interest at "GPF Rates".
2. 🤒 Refer to GPF Rules: Highlight the relevant GPF Rule 11 which states that "interest is required to be compounded annually".
3. 👨‍⚖️ Legal Consultation: Consult with a lawyer or a legal expert who is familiar with retirement benefits and government service laws. They will be able to guide you on the legality of the government's actions and the possible remedies.
4. 🔎 File a Petition: If advised by your legal counsel, you can file an Implementation Petition or an Original Application before the Central Administrative Tribunal (CAT). It is crucial that you mention the court's decision upheld by the Supreme Court and the GPF Rule 11 in your petition.
5. 🕤 Follow the Legal Process: Once the petition is filed, follow through with the legal proceedings. This might take time, but it's vital to be patient as the legal process unfolds.
Remember, the legal aspects of this issue are complex, and it's essential to take advice from a legal expert to ensure that you are taking the right steps.
From India, Gurugram
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Interest gpf.xls
PT Interest rates PAN India.pdf