Section 210(3) in The Navy (Pension) Regulations, 1964
(3)Action to be taken by the competent authority. - On receipt of the reports specified in clauses (i) and (ii) of sub-regulation (2) the competent authority shall for reasons to be recorded in writing decide, subject to the provisions of clause (ii), whether the whole or any portion of the overpayment shall be recovered or written off or in cases involving fraud or misconduct whether the pension shall be withheld wholly or reduced, and if so, permanently or temporarily, as the case may be, and communicate his decision to the Controller of Defence Accounts (Pensions).Any amount withheld under this regulation shall be adjusted against the overpayment to the extent necessary.(ii)In cases of pensions drawn in India, over payments made during the twelve months preceding the date of challenge in audit shall not be written off unless it is impossible to effect recovery.
