Section 62 in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
62. Interest on delayed payment of gratuity.
(1)If the payment of gratuity has been authorised after three months from the date when its payment became due, and it is clearly established that the delay in payment was attributable to the administrative lapse, interest at the rate of five per cent per anum (or at the rate that may be fixed from time to time by the Central Government for their employees) on the amount of gratuity in respect of the period beyond three months shall be paid;Provided that the delay in the payment was not issued on account of failure on the part of the employee to comply with the procedure laid down this chapter.(2)Every case of delayed payment of gratuity shall, suo mote, be considered by the Chief Executive Officer and where the Chief Executive Officer is satisfied that the delay in payment of gratuity was issued on account of administrative lapse, the Chief Executive Officer shall pass orders for the payment of interest.(3)In all cases where payment of interest has been authorised, the Chief Executive Officer shall fix the responsibility and take disciplinary action against employee or employees concerned who are found responsible for the delay in the payment of gratuity.(4)If a result of Commission's decision taken subsequent to the retirement of a employee, the amount of gratuity already paid on his retirement is commenced on account of :(a)grant of emoluments higher than the emoluments on which gratuity, already paid, was determined, or(b)liberalisation in the provisions of these regulations from a date prior to the date of retirement of the employee concerned no interest on the arrears of gratuity shall be paid.Explanation - Where disciplinary or judicial proceedings against an employee are pending on the date of his retirement, no gratuity is payable 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.However, in the case of employees who, on the conclusion of the proceedings, are fully exonerated, the interest on delayed payment of death-cum-retirement gratuity may be allowed in accordance with these instructions. 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 of interest on delayed payment of gratuity. The benefit of this explanation will, however, not be available to such of the employee who die during the pendency of judicial/disciplinary proceedings against them and against whom proceedings are consequently dropped.
