NATIONAL ORGANISATION OF INSURANCE PENSIONERS
Regn No.PN 4769 (Regd under Indian T U Act, 1926)
(Affiliated to Bharateeya Mazdoor Sangh)
BMS Office, Vishwakarma Bhavan, 185, Shaniwar Peth, Pune 411030.
President: T.C. Gunesh Kumar Working President: Vilas V. Purkar General Secretary: Ashok J. Joshi
Mob No: 9880683639 Mob No: 9922166599 Mob No: 9561084182 & 9945104570
Date: 28-10-2023
Cir No 32/2023
Disciplinary Matters and a brief note prepared by Shri. C T Joshiji & team
(S/Shri. Wateji and Hemannaji)
Of late, many disciplinary actions are initiated after retirement of employees, more so in respect
of Officers. If initiated before the retirement, then in lot of cases the Terminal Benefits are
withheld. There are clearcut instructions from Central Office in the form of Circulars, Staff
Rules, 1960 and LIC(E) Pension Rules, 1995 in this regard. However, our Divisional Office
Bearers may NOT be aware of this. Hence, raise an issue of non-settlement of Terminal benefits
with NOIP. The Divisional Office Bearers also should be aware of who are the Competent
Authority (CA) for each cadre of Employee/Officers. A list is appended here below for the
information of our OBs.
A) In this regard it is felt necessary to issue clear guidelines to our Divisional Office Bearers,
which need to be followed scrupulously.
1. When DA (Disciplinary Authority) issues letter to a retired employee/officer calling for
explanation for irregularity purported to have been done by him while in service : the
Pensioner should first draft his reply, since he will be aware of the facts of the case. He
should send the draft to Divisional Unit Office Bearer of NOIP for modifications/
deletions/corrections, if any. Only then the Pensioner should submit his corrected reply to
the Office within the time specified.
2. When the reply goes to the Office, either of the TWO things may happen: a) a Charge
Sheet may be issued and enquiry proceedings may commence b) the Pensioner may be
issued a warning letter, recover the loss suffered by LIC and let the issue go at that.
In case of a) above the OB should help the Pensioner in drafting suitably to the Charge Sheet and
assist in the proceedings.
In case of b) above, ask the Pensioner to remit the Amount and avoid further tension.
3. At DO, the OBs should meet the CA (Competent Authority) and insist for early
completion of the proceedings. If necessary, the Divisional Unit can submit letter and
reminders for the purpose. (Letters and reminders from the CSE (Charge Sheeted
Employee) also necessary).
4. Without exhausting the avenues at DO OB's level, the cases should not be referred
to Central Leadership.
5. When the Proceedings complete, the report is submitted. Then the DA will take a
decision and convey the same to the CSE. Here again either of the two things can happen:
a) the CSE may be found guilty of the irregularity, and hence penalty is proposed to be imposed. This letter is called as Show Cause Notice (SCN). b) the CSE may be found
NOT guilty and the case is closed.
In case of (a) above, study the Show Cause Notice properly. The Penalties under Rule 39 of Staff
Rules are now divided into Minor and Major. Make sure under which the penalty proposed falls.
The CSE (Pensioner) cannot submit an appeal to the 1st Appellate Authority against the proposed
Penalty in the Show Cause Notice (SCN). However, he can submit his/her SAY to the DA
requesting to modify/reduce Penalty proposed. The DA then makes a Final Order imposing the
Penalty (which may be less than the proposed one) If an appeal is to be preferred under Rule 40
of Staff Rules, 1960, against the Penalty imposed by DA, help the CSE in drafting the Appeal to
the Appellate Authority (AA) as shown in the Chart below, within THREE months.
Staff Rules 41, 42, 43, 44, 45 & 46 are important and one has to go through them.
6. At this stage, the help of NOIP HQ ie Disciplinary Committee should be taken by
submitting all papers and giving brief history of the case.
B) The following points may please be noted carefully.
1. NO issue can be raked up by Office after FOUR years from the date the cause of
action arose. To give an example, if a wrong has been done by an Officer while in
service on 10-04-2019, then NO charges can be framed after 10-04-2023.
This is very important aspect, if any explanation is called for or if any Charge Sheet is issued
after 10-04-2023 in this example, then the first point in our reply should be that raising the issue
after 4 years is against the rules. Only then other explanation should be given.
2. Ours is a Pensioners’ Union and hence TWO types of cases may come to us. One is, a
case already going on while the employee was in service and before its completion, he
retires. The proceedings will continue even after his retirement. Secondly, he might have
retired without any blemish and subsequently Office finds out fault with the employee's
working and starts proceedings now.
In the first case, Office may withhold the Terminal Benefits like Gratuity and PLE (P L
Encashment). But the employee is entitled to receive Provisional Pension in which case
Commutation is not allowed. If provisional pension is not granted, the affected pensioner should
give a letter to the SDM demanding the same.
In the second case, the employee might have received all terminal benefits including CV
(Commuted Value). In such case, Office can NEITHER ask him to refund the Terminal Benefits
already paid, NOR stop payment of Pension.
3. Our reply as far as possible should be in a polite language. Because when and if the case
goes to the Court, the tone & language of reply matters, very much.
4. The effect on Terminal Benefits, if the employee is found guilty of the charges & penalty
is imposedSl No Terminal Benefit Penalty is Removal Penalty is Dismissal
1 Gratuity Payable, subject to
recovery of financial loss
to the Corp.
If misconduct is of the nature of moral
turpitude or offences like violence against
any co-employee or Management or any
riotous or disorderly behaviour in or near
the place of employment, provided that
offence is committed during the course of
his employment, Gratuity is fully forfeited.
2 Provident Fund P F cannot be withheld.
Employee’s contribution
and Corporation's
contribution with Interest
is payable.
a) The employee’s contribution with Interest
is payable.
b) If the misconduct is of the nature of
negligence, insubordination, fraud,
misappropriation, acceptance of bribe, acts
involving violence against the management
or other employees or any riotous or
disorderly behaviour in or near the place of
employment, employer's contribution to
be paid subject to recovery of pecuniary
loss caused to the Corporation.
Else, employer’s contribution to be paid
in full.
3 GSLI To be paid in full. To be paid in full.
4 PLE Not to be paid. Not to be paid.
5 Addl Gratuity &
Free Insurance
Not to be paid. Not to be paid.
6 Pension As per CO circular dtd. 30-
07-1996.
As per CO circular dtd. 30-07-1996.
7 Retirement TE to
Class 1 Officers.
Not to be paid. Not to be paid.
Above chart as per CO circular: ER/Discipline dtd. 17-10-1996.
5. Settlement of Terminal Benefits, where Disciplinary proceedings are contemplated:
a) Gratuity: to be withheld and released only after the proceedings are over and after recovery of
financial loss to the Corporation, if any.
b) PF (own) & APF: Since these are his own contribution to be settled with interest earned on
it.
c) GSLI & GTIS: Cannot be withheld, since employee also pays premium for these benefits.
d) PLE: Can be withheld at the discretion of the CA, keeping in view the financial loss, if
any, suffered by the Corporation.
e) Addl Gratuity/Free Insurance: To be withheld as these are ex-gratia in nature.
(Above as per CO circular: ZD/952/ASP/2000 dtd.04-05-2000.)
6. The GOI vide Gazette Notification dtd. 19-10-2020 amended Rule 39 of the Staff Rules,
1960. It bifurcated Penalties into Minor and Major and listed Appointing Authority,
Disciplinary Authority and Appellate Authority as below:
For Minor Penalties: Penalties a) to e) of amended Rule 39(1):
Category of Employee Appointing Authority Disciplinary Authority Appellate Authority
Class 1 Officers
a) Posts in the Cadre of Executive Committee Chairman Executive Committee
ZM & above and
equivalent.
b) Posts in the Cadre of
DZM/SDM/DM &
equivalent cadres.
Chairman MD for SDM Cadres
ED(P) for DM cadre at CO.
ZM I/C for DM under the
Zone.
Chairman
Managing Director
Managing Director
c) Posts in the Cadre of
ADM/Sr/BM and
equivalent cadres.
Managing Director ED(P) for ADM under CO.
ZM I/C for ADM/SBM
cadre under the Zone.
Managing Director
Managing Director
d) Posts in the Cadre of
AO/BM and equivalent
cadres.
ED(P) ED(P) for Officers in the
cadre of AO under CO.
ZM I/C for AO cadre posts
at ZO.
ED(Audit)/Chief (Audit)
for Officers in the Cadre of
AO posted at Audit
Centres.
Sr/DM for Officers in the
Cadre of AO under DO
Managing Director
Managing Director
Managing Director
ZM
e) Other Posts in Class 1 ZM / ED(P)
ED(Audit)/Chief
(Audit
D(P) for officers in the
cadre of AAO under CO
ED(Audit)/Chief (Audit)
for officers in the cadre of
AAO posted at Audit
Centers.
ZM I/C for AAO cadres
posted at ZO
Sr/DM for officers in the
cadre of AAO under DO
Managing Director
Managing Director
Managing Director
ZM
Class 2 DM DM ZM
Class 3 & 4
other employees
DM Sr/DM/Secretary/Dy
(Secretary) Audit
ZM/D(P) /
ED(Audit)/Chief
(Audit)
Major Penalties: - Rule 39(1) (f) to (j):
Category of Employee Appointing Authority Disciplinary Authority Appellate Authority
Class 1 Officers
a) Posts in the Cadre of
ZM & above and
equivalent.
Executive Committee Executive Committee Corporation.
b) Posts in the Cadre of
DZM/SDM/DM &
Chairman Chairman Executive Committe
equivalent cadres.
c) Posts in the Cadre of
ADM/Sr/BM and
equivalent cadres.
Managing Director Managing Director Chairman
d) Posts in the Cadre of
AO/BM and equivalent
cadres.
Executive Director(P) Executive Director(P) Managing Director
e) other officers in
Class-1
ZM / D(P)
ED(Audit)/Chief
(Audit)
ZM / D(P)
ED(Audit)/Chief (Audit)
Managing Director
Class 2 DM DM ZM
Class 3 & 4
other employees
DM DM ZM/D(P)/
ED(Audit)/Chief
(Audit)
Notwithstanding the provisions contained in this Schedule, immediate superior Class 1
Officer shall have authority to impose the penalty of Censure under clause(a) of sub-rule(1)
of rule 39 and an appeal against the imposition of such penalty shall lie to an Officer one
step higher
7. Where any Major penalty under Rule 39 (1) (f) to (j) is to be imposed and if the DA is
lower in rank to the Appointing Authority, then all the papers should be forwarded to
Appointing Authority along with its decision. The Appointing Authority shall impose
such penalty, as it considers appropriate.
8. Where 2 or more employees are involved in a case, the authority competent to impose a
major penalty to all such employees may make an order directing the departmental
enquiry against all of them may be taken in common proceedings.
9. An employee whose appeal under these Rules has been rejected by AA (Appellate
Authority) subordinate to the Chairperson (CEO) or in case the AA has enhanced
the penalty imposed by DA or under Rules 40 or 48(2), may address a Memorial to
the Chairperson (CEO) in respect of that matter within a period of SIX months
from the date of receipt of order of the AA.
All our Office Bearers should note the above provisions and take necessary action at their end
first by helping the CSE. Only at the second stage it is to be referred to NOIP Disciplinary
Committee.
General Secretary
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