Section 62(4) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(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.
