Dated: February 13, 2006

OFFICE MEMORANDUM

Subject:- Cash payment in lieu of unutilized earned leave on the date of retirement to the Central Government employees who are compulsorily retired as a measure of punishment under the disciplinary rules.

In terms of the instructions issued by this Deptt. vide OM No.1402818186-Estt.(L) dt.22.6.87, a Government servant, who is compulsorily retired as a measure of punishment under disciplinary rules and the disciplinary authority has imposed any reduction in the amount of his, pension (including gratuity) under Rule 40 of the CCS (Pensions) Rules, 72, he is not being allowed encashment of leave on such retirement.

2. The demand of the Staff Side to allow encashment of unutilized earned leave to those Central Government employees, who are compulsorily retired as a measure of punishment and in whose case a cut in pension (including gratuity) has been imposed by the Disciplinary authority, has been re- considered in consultation with the Ministry of Finance. It has now been decided that in such cases where the government servants are compulsorily retired as a measure of punishment and in whose cases even if a cut in pension (including gratuity) has been ordered, the benefit of encashment of earned leave at the time of such retirement shall be allowed. It has accordingly been decided to delete the relevant Rule 39(5-A) of Central Civil Services (Leave) Rules, 1972.

3. In so far as persons serving in the Indian Audit and Accounts Department are concerned, this issues after consultation with the Comptroller and Auditor General of India.

4. These orders will be effective ftom the date of issue.

(S. Meenakshisundarain)
Deputy Secretary to ,theGovt. of India