#gratuity withholding

The Supreme Court ruled that gratuity under Rule 69(1)(c) of the CCS (Pension) Rules, 1972, cannot be released until both departmental and judicial proceedings are fully concluded, even if the employee is exonerated in one forum. This absolute statutory bar overrides any factual exoneration or procedural exceptions, impacting retired government employees facing disciplinary or criminal charges.

Gauhati High Court rules that pending ED investigations under PMLA do not justify withholding gratuity or pension unless the employee is named in an FIR, terminated, or statutory forfeiture grounds exist. The judgment reinforces that retirement benefits are protected under the Payment of Gratuity Act, 1972, even during financial irregularity probes, absent clear statutory violations.