Section 210(2) in The Navy (Pension) Regulations, 1964
(2)Overpayment of pension due to any other reason (including those involving fraud) shall be dealt with as follows :(i)Those challenged in audit within twelve months from the date of payment.- If a pension is payable, further payments shall be made at the correct rate and the overpayment recovered in instalments of one-third of the pension. If the circumstances leading to overpayment disclose fraud on the part of the recipient, and in the opinion of the Controller of Defence Accounts (Pensions) warrant the stoppage of the pension in full or recovery of over payments in instalments of more than one third of the pension, a report shall be submitted (through the Controller General of Defence Accounts in cases of pensions drawn outside India) to the competent authority, who shall decide each case on its merits and communicate their decision to the Controller of Defence Accounts (Pensions). Further adjustment as may be necessary shall be carried out by the Controller of Defence Accounts (Pensions) on receipt of such orders.If no pension is admissible, payment shall cease immediately the error is detected and a report of the circumstances leading to the overpayment shall be submitted (through the Controller General of Defence Accounts in cases of pensions drawn outside India) to the competent authority.(ii)Those not challenged in audit within twelve months from the date of payment (including those where payments were made partly within twelve months and partly on a date or dates more than twelve months anterior to the date of challenge). - If a pension is payable, further payments shall be made at the correct rate and a report of the circumstances leading to the overpayment shall be submitted by the Controller of Defence Accounts (Pensions) (through the Controller General of Defence Accounts in cases of pensions drawn outside India) to the competent authority. pending the orders of that authority, no recovery of the overpayment shall be made.If no pension is payable, payment shall cease immediately the error is detected and a report of the circumstances leading to the overpayment shall be submitted by the Controller of Defence Accounts (Pensions) (through the Controller General of Defence Accounts in cases of pensions drawn outside India) to the competent authority.
