Section 17(1)(iii) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(iii)the element of pension equivalent of gratuity including the element of commuted part of pension, if any, which was taken into account for fixation of pay shall be set off against the amount of death cum retirement gratuity and the commuted value of pension and the balance, if any, shall be refunded by him.