PANAJI
The Goa Human Rights Commission has held that the deduction of Rs 2.60 lakh from the gratuity of a retired police sub-inspector was impermissible in law, observing that employees cannot be made to bear the consequences of departmental mistakes made over decades.
The Commission, comprising members Desmond D’Costa and Pramod Kamat, has recommended that the department refund Rs 2,60,769 deducted from the gratuity of retired PSI Chandrahas Mhalsekar within 30 days, along with six per cent annual interest from the date of his retirement on June 1, 2023.
Mhalsekar had alleged that the amount was recovered from his gratuity towards an alleged excess payment after nearly 40 years of service. The Commission noted that Rs 2,60,769 was deducted from his gratuity on November 6, 2023, based on a Pension Payment Order issued after his retirement.
The complainant further alleged that he was made to sign an undertaking for recovery on May 26, 2023, five days before his retirement, after being told that his pension would not be processed unless he signed it.
“The deduction of Rs 2,60,769/- from the gratuity amount of the Complainant, a Class-III employee, on November 6, 2023, as per the Pension Payment Order, after his retirement on May 31, 2023, was impermissible in law,” the Commission held. It observed that undertakings obtained from employees at the time of retirement cannot automatically justify recovery, particularly when they are signed while pension and gratuity remain pending and the employee has little bargaining power.
The Commission relied on several Supreme Court and High Court rulings restricting the recovery of excess payments from retired employees, particularly where there was no fraud, misrepresentation or fault on the employee’s part. It also noted that recovery from retiral benefits must comply with the principles of natural justice. “A retired employee, especially from Class III or Class IV service, should not be penalised for a mistake committed by the employer decades ago,” it added.
While stressing that public money must be protected, the Commission said recovery cannot be mechanically imposed on retired employees who have committed no wrongdoing. The Commission has also sought the department’s comments, including details of action taken or proposed, within 30 days or by October 5.
