Section 58(8) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(8)As soon as the pension payment order has been issued by the Director(Administration)under clause (a) of the sub-regulation (6) or sub-regulation (7) the Director (Administration) shall take steps to refund the amount of withheld gratuity tinder sub-clause (ii) of clause (a) of sub-regulation (4) to the retired employee after adjusting the Commission's dues which may have come to notice after payment of provisional gratuity under sub-clause (ii) of clause (b) of sub-regulation (4). If the employee was an allottee of Commission's accommodation, the withheld amount should be refunded on receipt of 'No Demand Certificate' from the Estate Officer concerned.Note. - (i) The issue of last pay certificate should not be insisted upon before the payment of provisional pension. During the period of 6 months after retirement, which has been provided for various purposes above, it should be possible for the Head of office or other office concerned to issue the Last Pay Certificate to the employee. In cases in which the last pay certificate has not been issued by the time formal pension/gratuity payment orders are received (whether this happens prior to the retirement of the employee or after his retirement and after the grant of a provisional pension) the gratuity payment order will in any case include a provision from the withholding 10% of the gratuity or Rs. 1,000/-, whichever is less, pending the production of the last pay certificate.Note. - (2) In respect of other Commission's dues steps should be taken to ascertain or assess the outstanding dues when the processing of pension papers is taken up two years prior to the retirement date. As the next stage of the actual preparation of pension papers is reached only after a year and four months, there is ample time for ascertaining all kinds of Commission's dues. Once that stage is reached, i.e. 8 months before the retirement of the employee, any further probing of records for recoveries due shall cover only a limited period i.e. not more than 2 years before the date of retirement. It should thus be quite possible for the Head of Office, to ascertain or assess all the dues, particularly those pertaining to a long term advances such as house building or conveyance advances, over payment of pay and allowances, and such other dues, prior to the prescribed deadline for the issue of pension Payment/gratuity payment orders or the provisional pension/gratuity order. The pension papers should clearly indicate the total amount outstanding which should be recovered out of the death cum-retirement gratuity before authority for the payment of gratuity (whether final or provisional) issued, and if, after the pension papers have been transmitted to the Director (Administration) for issuing the Pension Payment Order, additional recoveries to be made from the gratuity come to notice, the fact shall be promptly reported to the Director (Administration). In a case where no major recoveries are due, but 10% of the gratuity of Rs. 1,000/- has been with held because there might be unassessed Commission's dues or because the gratuity has been provisionally paid or because last pay certificate has not been received, the withheld amount shall became payable on the expiry of 6 months after retirement as provided for in sub-regulation (7).
