Centre to recover incorrect benefits paid to employees

Indian Military Veterans

 Vijay Mohan
Tribune News Service

Chandigarh, February 9
The Central Government has revised its policy for recovery of wrongful or excess payment made to employees on account of pay revision, allowances or other monetary benefits. It has ordered the recovery of excess amount from employees in such cases. Earlier, such payments made on account of miscalculations or incorrect interpretation of policy by the establishment were not recovered provided there was no fraud or misrepresentation of facts on the part of the beneficiary.

In a circular issued on February 6, the Department of Personnel and Training has issued directions that in all cases where the excess payments on account of wrong pay fixation, grant of scale without due approvals, promotions without following proper procedure, or in excess of entitlements come to notice, immediate corrective action must be taken.

The new policy is based on a recent SC judgment that ruled that the excess payment of public money is basically “taxpayers’ money”, which belongs neither to the officers who have effected over-payment nor the recipients.

Ruling that effecting excess payment of public money by government officers may be due to negligence, carelessness, collusion, favouritism or mutual mistakes by the payer and payee, besides payments being made in many instances without any authority of law, the court held that any such payment amounted to unjust enrichment.