Section 210(2)(i) in The Navy (Pension) Regulations, 1964
(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.