Section 17(1) in The Khadi And Village Industries Commission Employees (Pension) Regulations, 1984
(1)a person who is re-employed in a post under the commission before attaining the age of superannuation and who, before such re-employment, had rendered military service after attaining the age of eighteen years, may on his confirmation in a post under the Commission, opt either(a)to continue to draw the military pension or retain gratuity received on discharge from military service, in which case his former military service shall not count as qualifying services, or(b)to cases to draw his pension and refund-(i)the pension already drawn, and(ii)the value received for the communication of a part of military pension, and(iii)the amount of death-cum-retirement gratuity including service gratuity, if any,and count previous military service as qualifying service, in which case the service so allowed to count shall be restricted to a service within or outside the employee's unit or department in India or elsewhere which is paid from the Consolidated Fund of India or for which pensionary contribution has been received by the Government:Provided that-(i)the pension drawn prior to the date of re-employment shall not be required to be refunded.(ii)to element of pension which was ignored for fixation of his pay including the element of pension which was not taken into account for fixation of pay on re-employment shall be refunded by him,(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.Note. - War service rendered by an employee appointed substantively to a post shall be treated as military service subject to the following conditions:(a)In the case of service or post in respect of which a minimum age is fixed for recruitment, no war service rendered below that age shall count as qualifying service;(b)No contribution towards or share of pension earned as a result of counting war service rendered in a force of a Common wealth country shall be claimed from the Government of that country; and(c)No refund of bonus or gratuity in respect of war service shall be demanded from the employee concerned.Explanation. - In this clause, the expression 'which was taken into account' means the amount of pension including the pension equivalent of gratuity by which the pay of the employee of the Commission was reduced on initial re-employment, and the expression which was not taken into account shall be construed accordingly.
