Section 67(3) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(3)The dues as assessed under sub-regulation (2) including those dues which come to notice subsequently and which remain outstanding till the date of retirement of the employee shall be adjusted against the amount of the death-sum-retirement gratuity becoming payable to the employee on his retirement.Explanation :- (1) The arrears of water and electricity are dues of Municipal Committees etc. which are local bodies and are, therefore, not Commission's dues, Similarly any dues to Co-operative Societies cannot be treated as dues to Commission. the recovery of such dues can be made from the death-cum-retirement gratuity.
