Clarifications on Hostel Subsidy & Reimbursement under

Some Clarifications on Hostel Subsidy and CEA

Readers may aware that as per DOPT OM No: 12011/3/2008-Estt (Allowance) dated 2.9.2008 and clarification OM No: 12011/03/2008-Estt (Allowance) dated 11.11.2008, Hostel subsidy at the rate of Rs.3000 per month is allowed as reimbursement for two children of central government employees provided the children study in a hostel of a school away from the station at which the employee is posted or is residing. However, as reported, many administrative authorities have rejected the Hostel subsidy claim under New CEA scheme of the employees on the ground that their children were not forced to study in hostel due to reasons such as transfer etc but they have been admitted in a school away from the working place of employees for the purpose of better education. It is very clear from the OM dated 2.9.2008 of DOPT that all the previous instructions relating to reimbursement of tuition fees and hostel subsidy etc have been superseded by the new CEA scheme. So, the old instructions relating old hostel subsidy will not be applicable to hostel subsidy under New children education Scheme. Also there is no specific instruction from DOPT to reject hostel subsidy on the ground detailed above. Now to the relief of employees who have admitted their children in a school away from working place for better education, DOPT has issued categorical clarification vide letter No: 12011/01/2010-Estt (Allowance) dated 11.1.2010. It is clarified by DOPT that OM dated 2.9.2008 of DOPT and subsequent clarification of even number dated 11.11.2008 have been issued in supersession of all the earlier orders. Hostel subsidy is reimbursable to all central government employees for keeping their children in the hostel of a residential school away from the station they are posted or are residing irrespective of any transfer liability Clarifications on Hostel Subsidy & Reimbursement under

Children Education Assistance.

The latest clarification is reproduced below.

33-4/2010-PAPGovernment of IndiaMinistry of Communications & ITDepartment of Posts(Establishment Division)

Dak Bhawan,

Parliament Street

New Delhi – 110001

Dated 21.07.2010

All Chief Postmasters General

All Postmasters General

All Directors of Accounts (Postal)

Subject : Sub: – Grant of Hostel subsidy and Children Education Assistance

Sir/Madam
Representations have been received from the staff side that:
(i) In many circles, the Hostel Subsidy has not been sanctioned to the officials as per the OM No 12011/03/2008-Estt (Allowance) dt. 2.9.2008
(ii) that the officials are entitled for reimbursement of all fee paid for children like imparting music or any other subject fee for the use of any aid or appliance extra-curricular activities, besides reimbursement of one set of text-books and notebooks, 2 sets of uniform and one set of school shoes, etc. However, the reimbursement has not been made for the above item for want of separate orders from the Directorate about the modalities. He requested the Directorate for issue of clarifications to circles.
2. The issues raised by the staff side have been examined and in consultation with the Department of Personnel and Training. The Department of Personnel and Training vide their U.O. No. 12011/05/2010-Estt (Allowance) dt. 05.07.2010 intimated that, it has been clarified vide OM NO. 12011/03/2008-Estt (Allowance) dt. 11-11-2008 that “hostel subsidy means expenses incurred by the Government servant if he has to keep his children in the hostel of a residential school away from the station at which he is posted or is residing. There are no further conditions attached to it. Further the OM no. 12011/03/2008-Estt (Allowance) dt. 2-9-2008 has been issued in supersession of the earlier orders. Therefore for payment of Hostel subsidy, the condition required to be fulfilled is keeping his children in the hostel of a residential school away from the station at which he is posted or is residing and it is not linked to transfer of Government servant as clarified by the Nodal Ministry. Further, as per OM No. 12011/03/2008-Estt. (Allowance) dated 02.09.2008, both Hostel Subsidy and Children Education Assistance cannot be availed concurrently.
3. In regard to point no. 2 raised by the Staff side, attention of the circles is invited to OM no. 12011/03/2008-Estt (Allowance) dt. 02.09.2008 wherein reimbursement items that can be claimed were detailed as:
“Tuition fee, admission fee, laboratory fee, special fee charged for agriculture, Electronics, music or any other subject, fee charged for practical work under programme of work experience, fee paid for the use of any aid or appliance by the child, library fee, games/sports fee and fee for extra-curricular activities This also includes reimbursement for purchase of one set of text books and note books, two sets of uniforms and one set of school shoes can be claimed for a child in a year”.
However, all these items are within the Annual Ceiling of Rs.12000 subject to production of cash receipts and other conditions prescribed by the Nodal Ministry in the said OM.
4. It is requested to bring these instructions to the notice of all concerned for scrupulous observance and strict compliance.

Sd/-(K. Rameshwara Rao)

Assistant Director General (Estt)

USPS faces loss with Fake Postage Stamps

USPS faces loss with Fake Postage Stamps

Counterfeiters are in un dating the US Postal Service with fake postage stamps and inspectors can't even say how bad the problem really is. "Those (fake) stamps are everywhere," said a source at the Postal Service, which reported a loss of $3.5 billion in the quarter that ended last month. That was the 14th loss in the last 16 reporting periods. Three of the six images accompanying this column are counterfeit postage stamps. Can you tell which ones? Neither can most people. If you had the actual 44-cent flag stamps in front of you, you might see that the fakes are a little more bluer and the real stamps a little bit purplish. Odd, no, that the colors of the American flag are red, white and blue - not purple! The easiest way to tell fakes from the real thing is the price. Not surprisingly, the loss-ridden Post Office doesn't offer discounts. But our fake stamps were purchased on the streets of Queens recently for 34 cents apiece.
A hundred-roll of stamps went for $34, compared with the $44 that the real things would set you back. The counterfeiters also give a discount for bulk purchases -- if you buy a thousand stamps the price goes down to 29 cents apiece. "If you are not paying full price," says one Postal source, "you know they are stolen or fake." There is one other obvious difference between the real and fake postage. The real stamps come in a continuous roll of 100. The fakes are rolled up like the real things but when uncoiled you'll see that they are in several sections -- each of which seems only as long as the biggest piece of photographic paper on the consumer market. The counterfeiters also make their stamps self-adhesive for consumer convenience. But you may have to move around the city from spot to spot before large quantities of the fake stamps are put in your possession -- in what looks like a security measure used by the counterfeiters to avoid Postal inspectors. But the counterfeiters apparently don't have much to worry about.
Detecting fake 44-cent stamps is way down on the list of things overworked Postal inspectors are concerned about. "They'll crack down more on those tending to be higher quantity mailers," said a Postal source, and not folks trying to slip an envelope or two through without paying.
Helping the counterfeiters even more is the fact that the number of Postal inspectors is way down and things like suspicious packages are much higher in priority.
And although counterfeiting (and even using) fake stamps is a federal offense, it is not the sort of crime that gets prosecutors' hearts racing. Sources say the buyers of large amounts of fake stamps often sell smaller quantities to bodegas and other places that deal directly with regular consumers. And these stores often mark up the price of stamps above the original 44 cents.
How would these stores know they are selling fake stamps? If they didn't pay the Post Office's rate of 44 cents apiece they are counterfeit. But even this isn't foolproof since counterfeiters could easily up their price to 44 cents to make their product look legit -- and achieve a higher profit margin in the process. And the bad guys lucked out recently when a request by the Postal Service for a rate increase was turned down. If postage for a regular envelope had risen from 44 cents, the counterfeiters would have had to copy a new stamp or produce a whole batch of low-profit penny postage to keep their 44 cent fakes in demand. The Post Office says there are ways for its processing machines to catch fakes, although it wouldn't tell me how. There doesn't appear to be anything unique with the paper on which the stamps are printed -- no imbedded fibers or 3-D images like on paper currency. But Postal machines might shine ultraviolet light on the stamps to detect fakes. The trouble is, even if fakes are detected Postal officials have to decide whether to let suspicious envelopes through or stop the cancellation process. That would also slow down thousands of envelopes with legitimate postage and make the Post Office even less efficient.

source-NewYork Post

Some FA Q about Tax Deduction and savings

Some Frequent Asked Questions about Tax Deduction and savings

1. What is a tax deduction?
A tax deduction is simply an item that helps you reduce your taxable income by the amount of the deduction. So by utilizing that particular deduction, you can reduce the amount of income tax by reducing the amount of your taxable income.

For example: If you have a taxable income of Rs. 2,50,000 for the financial year, and you invest Rs. 70,000 in PPF and Rs. 30,000 in Equity Linked Savings Schemes, then your taxable income is: Gross Taxable Income: Rs. 2,50,000

Deductions:
PPF: Rs. 70,000
ELSS: Rs. 30,000
Total Deductions: Rs. 1,00,000
Net Taxable Income: Rs. 1,50,000
2. How can I save tax using different tax deductions?
There are different tax deductions available to an individual under different Sections of the IT Act. Section 80C for example has a deduction limit of Rs. 1 lakh per annum.
You can save tax by making use of the various deductions available to you under different sections of the IT Act i.e. investing in these instruments.
3. What are the investment avenues available under Section 80C?
The specified investment schemes under section 80C are:
a. Life Insurance Premiums
b. Contributions to Employees Provident Fund (EPF)
c. Public Provident Fund (PPF)
d. National Savings Certificates (NSC)
e. Unit Linked Insurance Plan (ULIP)
f. Repayment of Housing Loan (Principal)
g. Equity Linked Savings Scheme (ELSS) of Mutual Funds
h. Fixed Deposit (FD) with Banks having a lock-in period of five years
i. Pension Funds
4. Does Section 80C include Section 80CCC and 80CCD?

Yes. The total deduction available under Section 80C is Rs. 1 lakh, inclusive of Section 80CCC and Section 80CCD. These two sub sections are to do with pension. Under Section 80CCC, you can invest up to Rs. 1 lakh in a Pension fund of LIC of India or any other insurance company. Under Section 80CCD you can invest in the National Pension Scheme of the Central Government up to 10% of your salary. Any contribution to this scheme of more than 10% of your salary will not be eligible for tax deduction.
5. What is the limit for Section 80CCF: Long Term Infrastructure Bonds?
An additional deduction of Rs. 20,000 has been introduced by way of investment into long term infrastructure bonds.
Here, any investment made into the specified long term infrastructure bonds between April 1st, 2010 and March 31st, 2011 will be eligible for a tax deduction up to Rs. 20,000.
This is in addition to the Rs. 1 lakh deduction available under Section 80C.
6. How does Life Insurance Premium payment contribute to Section 80C investment?
An amount up to Rs 1 lakh that you pay towards life insurance premium for yourself, your spouse or your children can be included in Section 80C deduction and reduced from your taxable income.
If you are paying premium for more than one insurance policy, all the premiums can be included, subject to the limit of Rs. 1 lakh.
a. Can I include life insurance premiums paid for my parents?
No. Life insurance premium paid for your parents or your in-laws is not eligible for deduction.
b. Does this apply to all life insurance products such as endowment, money back, term plans, ULIPs etc?
Yes. Any premium paid for any life insurance in any life insurance product is eligible for tax deduction under Section 80C.
Also note that any sum, including the bonus, received on maturity of a life insurance policy is tax free. Death benefits received are also exempt from tax.
Most importantly, remember to invest in a life insurance policy only if you need it, and not for the tax benefit. If you opt for it keeping in mind the tax benefit, you may end up being under-insured or possibly over-insured.
7. How do I save tax by contributing to general provident fund?
The GPF is a scheme intended to help government employees and deducted from their salary every month.
An employee can withdraw or take advances from the available fund.

SUMMARY OF GENERAL PROVIDENT FUND
Return (p.a.) :8 %
Risk: NIL
Lock In :Working Life
Income from Investment Interest earned is Tax Free
8. How do I save tax by contributing to the Public Provident Fund (PPF)?
PPF is eligible for tax deduction up to Rs. 70,000. So any amount up to Rs. 70,000 invested towards your PPF account will be eligible for tax deduction. The minimum investment in PPF is Rs 500 per year and the maximum investment is Rs 70,000 per year.
The unique feature of PPF is that in case of insolvency it will not be attached to the assets of the insolvent. So this is an attractive tax saving tool for business people in fluctuating and highly leveraged businesses. Withdrawals from your PPF account are allowed during certain years for specific purposes.
SUMMARY OF PPF DETAILS
Return (p.a.) :8.0%
Risk :NIL
Lock In : 15 years
Income from Investment Interest earned is Tax Free
Maturity Proceeds Exempt from tax.
NRI/PIO eligible :No

9. How do I save tax by investing in the National Savings Certificate (NSC)?
NSC is a good medium term investment option. An advantage of the NSC is that it can be pledged as security against a loan to banks/ government institutions.
The minimum investment starts from Rs 100 and there is no maximum limit for the investment in a year.
Return (p.a.) 8.0% compounded half-yearly, i.e., the effective annual rate of interest is 8.16%.
Risk :NIL
Lock In :6 years
Income from Investment • Interest accrued every year is liable to tax (i.e., to be included in your taxable income).
• However, interest is also deemed to be reinvested and thus eligible for section 80C deduction.
Maturity Proceeds It includes interest which is already taxed
NRI/PIO eligible :No
10. How do I save tax by taking a Unit Linked Insurance Plan (ULIP)?
Unit-Linked Insurance Plan (ULIP) is life insurance solution that provides for the benefits of risk protection and flexibility in investment. Part of the premium you pay goes towards the sum assured (amount you get in a life insurance policy) and the balance will be invested in whichever investments you choose as per what is available under the scheme - equity, debt or a mixture of both.
SUMMARY OF ULIP DETAILS
Return (p.a.) :Market linked
Risk Market and Fund manager risk
Lock In :5 years
Income from Investment: N.A.
Maturity Proceeds • Exempt under Section 10(10)D for any sum received from insurance policy as maturity proceeds. Death benefits are exempt from tax.
• However for ULIPs the maturity benefit is tax free only if the premium paid per year is less the 20% of the life insurance cover. In other words the life cover has to be at least 5 times the premium.
NRI/PIO eligible :Yes
11. How can I use my home loan to save tax?
The EMI (equated monthly installment) that you pay to repay your home loan consists of two components - one is the principal and the other is the interest. The principal component of the EMI qualifies for deduction under section 80C.
Even the interest component can save you significant income tax - but that would be under Section 24 of the Income Tax Act. Currently, anybody with a housing loan gets a deduction up to Rs 150,000, paid as interest for the loan, from his total income, for a self occupied property.
12. How do I save tax by investing in Equity Linked Savings Schemes (ELSS)?
Investment in ELSS is considered to be one of the best option to save tax because of many reasons like low expenses, short lock-in period, high liquidity and high growth in long-term. Year 2008 and 2009 had been extremely volatile. Still, many mutual funds have delivered positive return in past 3 years.
The limitations in ELSS are that premature withdrawal is not allowed. There is a 3 year lock in period. Also ELSS returns are not guaranteed as they are market linked investments.

SUMMARY OF ELSS DETAILS
Return (p.a.) :Market linked
(The last 5 years' return from ELSS has been approximately 20% compounded annually)*
Risk Market and Fund manager :risk
Lock In :3 years
Income from Investment Basically, dividend which is Tax Free
Maturity Proceeds Long term capital gain on sale of equity oriented mutual fund is tax free.
NRI/PIO eligible :Yes
13. How do I save tax by investing in the 5 Year Bank FD?
A fixed deposit is meant for those investors who want to deposit a lump sum of money for a fixed period; say for a minimum period of 15 days to five years and above. Investor gets a lump sum (principal + interest) at the maturity of the deposit.
The 5-year tax-saving bank deposit gives tax benefit under Section 80C as the amount you invest in the 5 year FD is deducted from your taxable income.
However interest received on the FD is taxable.
SUMMARY OF 5 YR BANK FD DETAILS
Return (p.a.) Typical interest rate is 8.00 to 8.50% with an additional 0.25 to 0.5% for senior citizens. The interest rate varies between banks and with time.
Risk NIL
Lock In 5 years
Income from Investment Interest received is taxable
Maturity Proceeds Includes interest which is already taxed
NRI/PIO eligible :Yes

14. How do I save tax using the New Pension Scheme?
This is a new, market-linked vehicle for those who do not have an EPF facility to target long-term retirement planning. It is open to any Indian citizen between the age of 18 and 55. Minimum investment is fixed at Rs. 6,000 p.a.
The NPS offers two accounts: tier I and tier II. This is a non-withdrawable account and investments in this keep accumulating till you turn 60.
SUMMARY OF NEW PENSION SCHEME DETAILS
Return (p.a.) :Market Linked
Risk :Market and Fund Manager Risk
Lock In :Till age of 60
Income from Investment :N.A.
Maturity Proceeds • Tax will be levied if you withdraw the money on maturity
• You can save paying tax by transferring the entire corpus to an annuity service provider and receiving a pension
NRI/PIO eligible: No

15. How do I save tax by investing in the Senior Citizens Savings Scheme (SCSS)?

It allows a retired person having a lump sum to invest it at a reasonably good interest rate. If you are 60 years old (or took voluntary retirement at 55), you are eligible for the scheme.
Minimum Investment under the scheme is Rs. 1,000 and maximum Rs. 15 lakhs.
The amount invested into SCSS is eligible for tax deduction under Section 80C thus reducing your taxable income in the year of investment.
This is a popular investment with senior citizens as it offers liquidity as well as periodic income – interest is paid out quarterly.

SUMMARY OF SCSS DETAILS
Return: (p.a.) 9%
Risk :NIL
Lock In :5 years (May be extended for another 3 years at the option of depositor)
Income from Investment :Fully taxable
Maturity Proceeds :Maturity proceeds includes interest which is already taxed every year
NRI/PIO eligible :No

16. How do I save tax by investing in the 5 Year Post Office Time Deposit (POTD)?

POTDs are similar to bank fixed deposits.
Although available for varying time duration like one year, two year, three year and five year, only 5-Yr post-office time deposit (POTD) qualifies for tax saving under section 80C.
The current rate of interest on the 5 year POTD is 7.50% p.a., compounded quarterly. The minimum investment amount is Rs. 200, there is no maximum investment amount. Interest on these deposits is calculated quarterly and paid out annually.
Return (p.a.) Effective 7.71% as interest is compounded quarterly
Risk NIL
Lock In :5 years
Income from Investment :Fully taxable
Maturity Proceeds Maturity proceeds includes interest which is already taxed every year
NRI/PIO eligible :No
17. How do I save tax by taking a Pension Plan?

Today pension plans are available with all life insurance companies. They typically come without any life cover (zero death benefit).
Pension funds are exempted under Section 80CCC, this section stipulates that an investment in pension funds is eligible for deduction from the income.
Section 80CCC investment limit is clubbed with the limit of Section 80C which means that the total deduction available for 80CCC and 80C is Rs 100,000. This also means that your investment in pension funds up to Rs 100,000 can be claimed as deduction under section 80CCC.
Of the maturity amount only one-third can be commuted in cash as tax free maturity. The rest of the amount (or the full amount as the case may be) has to be used to by a pension plan (annuity). Pension receipts from the same will be treated as income in the hands of the assessee and taxed accordingly. Recently, the Insurance Regulatory and Development Authority (IRDA) has come out with a clear rule that maturity amount should not be withdrawn as cash this is coming to effect from July 1, 2010. Currently, the maturity amount can be withdrawn as cash but the amount will be added to income and will be taxed accordingly.

Now that you know about the various investment instruments available, before you invest – ask yourself the following questions:
0. How much risk are you willing to take on the investment?
1. For how long will you not need to use these funds? i.e. what lock in period is suitable for you?
2. Do you want your returns to be tax free?
3. Do you want the maturity values of your investments to be non taxable?
4. Do you need liquidity?

Factor Criteria
1. Risk and Returns

• Fixed rate of return with more safety - NSC, PPF, Bank FD OR
• Market return with more risk - ELSS or ULIP.
2. Lock-in period

• Range: Up to 15 years lock-in;
• ELSS has the least lock-in period of 3 years, whereas PPF has the highest of 15 years;
• Others fall in between
3. How return are taxed

The most crucial part is to look at how the returns are taxed.
• Only PPF and ELSS offer tax free returns; whereas
• Interest on NSC, Post Office term deposits and bank FDs is taxable
4 (a) Tax Treatment on Maturity

• Usually products offer tax deduction on investment
• Few offer tax exemption on returns at the time of maturity
• The taxability on maturity reduces the effective return that an investment offers.
4 (b) EEE or EET category

• Exempt-Exempt-Exempt (EEE) tax status - tax benefits at the investment stage, the accrual (accumulation) stage and maturity stage - PPF, ELSS and Life Insurance
(• Exempt-Exempt-Tax (EET) tax status - tax benefits at the investment stage and the accrual (accumulation) stage and are taxed at the maturity stage - Bank FDs.
• In the new Direct Tax Code, lot of investment products will shift from EEE to EET wherein these products will be taxed at the maturity stage
5. Maximum Investment Limit

• If a product has maximum investment limit in a year, a tax payer will not be able to claim entire tax benefits for any amount invested above the maximum limit;
• PPF has maximum investment in a year of Rs. 70,000
• In case of ELSS and ULIPs there is no maximum investment limit.
6. Liquidity

• Most tax saving investment products come with a lock-in period;
• PPF allows partial withdrawal during the 15 years tenure of the investment.
• Tax savings bank FD cannot be broken before maturity and also

banks normally don’t give loans against these FDs.
• Traditional Life insurance policies and ULIPs allow partial withdrawals but only after completion of 3 years. Also, as an investor you can take loans against life insurance policies.
• An investor can also take loan against NSC Certificates.
7. Inflation protection

• Returns from financial products should beat inflation;
• Low fixed returns products are to be avoided by investors during periods

of high inflation as they yield negative returns.
• In the long run equities have consistently given higher inflation

adjusted returns than returns given fixed return securities.

Infrastructure Bonds: Boost Your Tax Savings

Infrastructure Bonds: Boost Your Tax Savings

Section 80C of the Income Tax Act offers a maximum deduction of Rs1 lakh, for investments in national savings certificate (NSC), public provident fund (PPF), life insurance premiums, equity-linked savings schemes (ELSS) and pension plans. If you have already exhausted the limit of Rs1 lakh and wish to cut your tax outgo further, the government has, in this year's Union Budget, provided an added benefit of Rs20,000 for investments in infrastructure bonds. Under the new Section 80CCF, investments in government-approved long-term infrastructure bonds will be eligible for a deduction of up to Rs20,000 from the annual income, in addition to the existing limit of Rs1 lakh. This will be an additional tax saving for individuals. For instance, for an individual in the highest income tax bracket of 30%, the new instrument will offer tax savings to the tune of Rs6,000 annually not taking into account the education cess. There is no limit on investment in these tax-saving infrastructure bonds. They have a tenure of 10 years with a lock-in period of five years. As the money will be blocked for such a long period, consider investing only if you have the patience and no immediate liquidity needs. Investors can exit after the five-year lock-in period, either through the secondary market or through a buy-back option as specified by the issuer. After the lock-in period, these bonds can be pledged for loans from specified banks; the loan amount will depend on its market value and the credit quality of the instrument. To qualify for tax exemption, investments should be made only in the long-term infrastructure bonds specified by the government. These include bonds issued by Industrial Finance Corporation of India, Life Insurance Corporation of India, Infrastructure Development Finance Company and non-banking financial companies classified by the Reserve Bank of India as infrastructure finance firms. These bonds assure investors of a reasonable return on investment. However, the rate of interest and other terms and conditions will be specified by the issuer. Also, the yield will not be more than the yield on government securities of similar duration. These bonds are not yet in the market; issuers are likely to launch these bonds by the end of this fiscal. If you are looking for a low-risk investment, tax savings, and do not wish to put money in other risky products, it may be worthwhile to invest in infrastructure bonds.
Moneylife Digital Team

India Post set up Vigilance Squads

Tamilnadu Circle

India Post set up Vigilance Squads

Determined to set a shining new example, India Post has set up vigilance squads across the state to keep tabs on postmen who demand money from customers for their services. According to Shanthi Nair, Chief Postmaster General, Tamil Nadu Circle, customers are filing around 100 complaints every month, in the wake of which the department has decided to take strict action to end corruption.
Even as it cleans up its act, the postal department is going high-tech. “Among 12,000 computerised post offices in the country, 1,459 are in Tamil Nadu and the department will soon complete the computerisation of another 100 post offices in TN villages,” said Ms Nair, while announcing World Post Day and National Postal Week celebrations in the city on Friday.
About 176 post offices in the state have already been modernised under Project Arrow and the department has already identified another 80 more offices for the Phase IV modernisation plan.
Aadhar, which is to be prepared under the unique identification code, will be distributed through India Post and the postal department will play a major role in its preliminary stages of implementation.

Airtel joins with India Post for document re-verification

Airtel joins with India Post for document re-verification

Bangalore: Bharti Airtel has tied up with the India Post in Karnataka for collection of documents. This initiative has been taken to facilitate all subscribers to avail services like Airtel prepaid and postpaid subscription form, assistance in filling the form collection of documents, authenticating, validating & dispatch of the documents to Bharti Airtel.
These services can be availed in 59 post offices, 1,950 sub post offices in Karnataka and Airtel customers will have access to nearly 2,000 post offices. Adhering to DOT deadline, which had instructed all the telecom operators to re-verify their subscribers' documents by October 31, Bharti has opted for this method to facilitate submission of documents by subscribers. Airtel has joined India Post to speed up the process. The company will conduct a one day campaign in Mysore, where the Airtel customers can re-submit their documents.

difference in commuted value be paid without fresh applications

Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications to pensioners who retired on/after 1.1.2006 but before 2.9.2008.

F. No. 38/79/08-P&PW(G)
Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Pension & Pensioners’ Welfare
3rd Floor, Lok Nayak Bhavan,
Khan Market, New Delhi – 110003
Date: 27th October, 2010
OFFICE MEMORANDUM

Sub.: Payment of Commutation Value of additional amount of pension in respect of employees who retired on/after 1.1.2006 but before 2.9.2008 and expired before exercising option for commutation of additional amount of pension – Regarding.

As per the provisions contained in para 9.3 of this Department’s OM No. 38/37/08-P&PW(A) dated 2nd September, 2008, the revised table of commutation value for pension will be used for all commutations of pension which become absolute after the date of issue of this OM. In the case of those pensioners, in whose case commutation of pension became absolute on or after 1.1.2006 but before the issue of this OM, the pre-revised Table of Commutation value for pension will be used for payment of commutation of pension based on pre revised pay/pension. Such pensioners shall have an option to commute the amount of pension that has become additionally commutable on account of retrospective revision of pay/pension on implementation of the recommendations of the Sixth Central Pay Commission. On exercising such an option by the pensioner, the revised Table of Commutation Value for pension will be used for the commutation of the additional amount of pension that has become commutable on account of retrospective revision of pay/pension. In all cases where the date of retirement/commutation of pension is on or after 2.9.2008, the revised Table of Commutation Value for pension will be used for commutation of entire pension.

2. References have been received from various Departments seeking clarification from this Department whether the commutation value of additional pension in respect of such employees who had retired during the period between 1.1.2006 and 2.9.2008 and died before exercising option is payable to the eligible member of family or not. The issue has been examined in consultation with Ministry of Finance, Department of Expenditure who has observed that the Pay Commissions’ intention was that the pensioner should exercise a conscious choice in view of the fact that the commutation table has changed w.e.f. 1.1.2006. As such, in these cases, the Rule 10 of CCS (Commutation of Pension) Rules, 1981 may be followed and difference in commuted value be paid without fresh applications. The intention was not to deny the higher capitalized value on account of revision of pension.

3. This issues with the concurrence of Ministry of Finance, Department of Expenditure vide their UO No. 456/EV/2010 dated 18.10.2010.


(V.K.Wadhwa)
Under Secretary to the Government of India

SEBI approved QIB status to PLI/RPLI

SEBI approved QIB status to PLI/RPLI

The Securities and Exchange Board of India on Monday decided to increase the maximum application size for retail individual investors to Rs.2 lakh across all issues.

The board decided to accord the QIB(qualified institutional buyer) status to insurance funds set up by the Department of Posts such as the Postal Life Insurance Fund (PLIF) and the Rural Postal Life Insurance Fund (RPLIF).

source-i net

Postal Life Insurance

Postal Life Insurance

Eligibility : Employers of central and state Government, Defence Services, Extra Department & work charged employees of Department of Post & Department of Telecom, Govt. Aided educational institutions, Universities, Nationalised Banks, Public sector Undertakings of central /state Government, Local Bodies like Municipalities, Zilla Parishads etc. Financial Institutions like IDBI, IFCI, IRCI, UTI, etc. Regional Rural Banks, Departmental canteens.The Policy can be continued by paying premium in cash in post office after quitting the service
Type of Policies :

1) 'Suraksha' (Whole Life Assurance)

2) 'Santosh' (Endowment Assurance)

3) 'Suvidha' (Covertible Whole Life Insurance)

4) 'Sumangal' ( Anticipated Endowment Assurance)

5) 'Yugal Suraksha' ( Joint Endowment)6) 'Children's Policy'
Age : Should be between 19 years and 55 years. For 'Sumangal' 15 / 20 year plan, maximum age is 45/40 years respectively & for Yugal Suraksha age at entry of both the spouses should be between 21 to 45 years and age at maturity of older spouse should not be more than 60 years on the next birth day .
Low Premium: Premium rates of P.L.I are lower as compared to those of insurance schemes of any other agencies
High Bonus : Bonus rates are higher as compared to those of insurance schemes of any other agencies.

Income Tax Rebate : PLI premium paid is eligible for income tax rebate under section 80-C of Income Tax Act
Risk Cover : Risk is covered on the policy from the date of acceptance of the proposal
Advance Deposit 1st Premium : The Development/Field officers of PLI are authorised to collect from proponents advance deposit of amount equivalent to 1st premiums on their proposals and issue receipt thereof.
Paid up policies also earn bonus
Recovery of premium from pay: Facility of recovery premium from salary is available under the group leader scheme .
Maximum Limit of Assurance : PLI offers policies up to a maximum sum assured of Rs. 10 lakhs. Physically handicapped persons are also eligible to take PLI policies up to a face value of Rs. 1,00,000/- under special scheme, subject to certain conditions.
Conversion : Whole life policy can be converted into Endowment Assurance Policy.
Revival : Revival of policies lapsed due to non payment of premium is allowed on production of good health certificate and payment of arrears premium with interest at 12 % per annum subject to certain conditions under Rule 39/40 of POIF Rules.
Loans : Loans can be obtained against the security of PLI policy which have been in force for atleast 3 years/ 4years in case of Santosh/Suraksha respectively.
Surrender : a) Suraksha , Santosh & Suvidha policies which have been in force for atleast 3 years can be surrendered for immediate cash payment. Surrender of policy is not admissible before completition of 36 months of the policy and the amount deposited shall be forfeited.

b) On surrender, the policy shall attract proportionate bonus on reduced sum assured upto the date for which premium has been paid. However, no bonus shall be payable before completion of 5 years of the policy.

c) The discontinued policy shall not attact bonus with effect from date from which the premium is discontinued.

d) The reduction sum assured shall be calculated by multiplying the sum assured with number of installments paid and dividing the same with total number of premiums to be paid.

e) The surrender value shall be calculated by multiplying the sum of reduced sum assured plus the proportionate bonus if any with surrender factor as applicable on the attained age as on the date of surrender of the policy.
After Sales Service : The Policy details of all the insurants have been computerised and this enables us in giving an excellent after sales service to the insurants.
Nomination/Assignment : Facility of nomination and assignment is available.
Non-medical Policies : Scheme of non-medical policies is available up to Rs. 1 lakh sum assured only (age limit 35 years) under certain conditions.
Reduction : A policy holder may apply for reduction of his monthly premium and sum assured without altering the class of his policy.
Lapsation of Policy : Policy has been in force for not less then 3 years and premium has not been paid twelve consecutive month and if the policy has been in force for less than 3 years and premium has not been paid for six consecutive months the policy becomes void/lapsed which should be got revived from the Chief DMG (PLI)Rebate @ 2 % is allowed if annual premium is paid in advance and @ 1 % is allowed if six monthly premium is paid in advance.
The 'SUMANGAL' policy offers the following attractive benefits
15 years Term
20 years Term
1. At the end of 6 years, 20 % of the sum assured is payable
At the end of 8 years, 20 % of sum assured is payable
2. At the end of 9 years, 20 % of the sum assured is payable
At the end of 12 years, 20 % of sum assured is payable
3. At the end of 12 years, 20 % of the sum assured is payable
At the end of 16 years, 20 % of the sum assured is payable
4. At the end of 15 years , 40 % pf the sum assured is payable together with bonus accrued
At the end of 20 years, 40 % of sum assured is payable together with bonus accured
Yugal Suraksha
Object : Newly introduced Joint Life Endowment Assurance Plan provides insurance coverage to both the spouses. However only one can subscribe the policy. Spouse need not be an employee.
Term : Not Less than 5 years & not more than 20 years.
Risk cover : Risk on both the lives is covered from the date of acceptance of the proposal.
Premium : The premium based on equivalent age at next birthday is calculated by addition to the lower age depending upon difference in age of spouses. Table "A" for addition in lower age and Table "b" shows premium for equivalent age (Next Birthday). A rebate of 2 %, 10 % or 50% of the premium for ONE MONTH is allowed, if premium is paid in advance for 3, 6 or 12 months respectively.The premium will be payable either up to the date of last premium fixed before maturity or up to the death of one of the spouses, whichever is earlier.
Claims : The sum assured along with accured bonus of the policies in full force will be payable to -a) the insurant at the end of endowment term i.e. date of maturity if both the lives survived.or ,b) the survivor on death of one of the spouses before the date of maturity.The survivor is absolved from payment of further premiumor,c) the nominee/Legal heirs on death of both the insured lives simultaneously.Both the spouses should be healthy, confirmed A-I lives by the appropriate medical examiner and should be literate.
Children's Policy-2006
Children's Policy is newly introduced w.e.f. 20-01-2006 and applicable to both PLI/RPLI.
Object : To provide insurance cover to the two children of each policy holder provided that only one such policy will be allowed for an insured against one policy.
Eligibility : a) This is an independent policy, however this policy can not be issued of its own to any child. If the father/mother (insured) of the child has already taken policy or is proposing to take policy on their life either as whole life or endowment Assurance for a sum assured not less than the sum assured of children policy then children policy shall be issued to such insured.b) Not more than one policy will be allowed for one child. The policy can be taken by insured for his/her own child only.c) Not more two children in a family shall be covered under this policy. The same child should not be covered under more than one policy.
Age Limit : a) The insured main policy shall not be aged 45 years and above at the time of taking/issue of children policy.
Limit of insurance : The minimum limit for insurance under this scheme shall be Rs. 20,000/-. The maximum limit of sum assured should be more than 1,00,000/-
Medical Examination : The policy shall be a non medical policy for a maximum sum assured of Rs. 1,00,000/- per child.
Risk Cover : Risk is covered from the date of acceptance of the proposal.
Loan : No loan is admissible to children policy.
Surrender : Surrendered and made paid up on usual conditions as applicable to main policy provided at least 5 years premiums have been paid. Amount is admissible as per surrender Table/Factor which would be a fraction of premium paid.
Term : The out standing term of main policy shall not be less than the premium paying period of children policy.
Claim : a) Sum assured shall be payable on children policy on its Maturity or earlier on death of the child.b) In the event of death of the insured before the expiry of the children policy, no further premium shall be payable for the balance period of the policy.
Any additional information can be obtained from Circle, Divisional office or Development/ field officers and PLI Agents.

R M launches new gold coins with India Post logo

Reliance Money launches new gold coins

with India Post logo

Anil Ambani group company Reliance Money Infrastructure Limited (RMIL) Monday launched new gold coins with the India Post logo to capitalise on the festive fervour in the country.
The company, part of Reliance Capital, also launched a special promotional offer, under which it would give a 0.5 gram of gold coin free on every purchase of 10 grams. This offer would be available to customers for the entire month of October up to Diwali.

"India is the largest consumer of gold globally and traditionally gold is bought during festive seasons like Diwali. We expect to achieve 50 percent of our yearly sales target during this festival itself," said Vikrant Gugnani, Director, RMIL.
Research reveals Indians privately hold around 18,000 tonnes and buy around 700 tonnes of new gold every year.
RMIL targets to more than double its gold coins sales to 600 kg by the end of the current financial year and aims to be the largest gold coin retailer in the country in the next two years.
The company is expanding its distribution reach to 850 India Post outlets across India, up from the current 632 India Post offices, as part of its drive to reach the remotest parts of the country.
Currently, the company’s gold coin range includes gold coins in the 0.5 gram, 1 gram, 5 gram and 8 gram denominations.
Besides India Post, the entire range of pure gold coins would also be available across Reliance Money, Reliance World and the company’s partner outlets across the country.

SOURCE-I NET

New Pension Scheme

New Pension Scheme

Under the New Pension Scheme (NPS), investors save money which is put into the capital market. The sum which you will get after retirement will be dependent on the performance of the capital market. You can make monthly or weekly contributions to the NPS. But for every contribution, your transaction cost will increase. Prior to NPS, there was the Defined Benefit Plan -one would get certain pension fixed for life. The postretirement proceeds were fixed and if there is a shortfall in this corpus, the government would make good. NPS is a Defined Contribution Plan where the returns will not be fixed. You will only get what you have contributed and returns that the fund manager generates on it. All new entrants to the central government services (other than armed forces) after January 1, 2004, will compulsorily join this scheme. All citizens, including NRIs, aged 18 to 60 can voluntary join the scheme. The exit age is 60 years. A minimum contribution of Rs 6,000 is compulsory per year. The minimum amount per contribution is Rs 500 and a minimum of four contributions in a year for each subscriber account is required. Under the NPS, each subscriber is allotted a unique 16-digit Permanent Retirement Account Number (PRAN). This number is portable. The records of transactions are maintained by the Central Record Keeping Agency (CRKA). The subscriber has the option to invest with seven pension fund managers (PFMs). He also has the option to choose any one or more PFMs to manage his contribution. These PFMs will have three kind of funds categorised as 'E' for equity funds, 'G' for funds investing in government securities and 'C' for fixed income securities other than government securities. There are two types of accounts: Tier I account where you cannot withdraw The Tier I account is the basic NPS account that is non-withdrawable till retirement or death of the subscriber. In this account, the total corpus at retirement age is split, where a minimum of 40 percent of the final corpus has to be compulsorily used to buy an annuity while the subscriber is free to withdraw the remaining 60 percent as a lump sum or in installments. Tier II account where you can withdraw The Tier II account is available to only to those who are existing subscribers of the Tier I account. The money contributed into this account can be freely withdrawn as and when the subscriber wishes to except for a minimum balance that needs to be maintained at the end of each financial year. Charges The NPS levies an investment charge of .00009 percent of the assets under management. Initial charges of account opening is around Rs 470. From the second year onward the charges are Rs 350 per annum. Also, a charge of Rs 10 is applicable for each transaction. One can make monthly or weekly contributions. But for every contribution, your transaction cost will increase. Fund managers These are managed by fund managers. Currently, seven fund houses appointed by the government are available under the NPS. These are: LIC Pension Fund Limited SBI Pension Funds Pvt Limited UTI Retirement Solutions Limited IDFC Pension Fund Management Company Limited ICICI Prudential Pension Funds Management Company Limited Kotak Mahindra Pension Fund Limited Reliance Capital Pension Fund Limited Schemes There are three schemes available under the NPS. Fund C In case you invest in this fund, all the money will be invested in fixed income instruments such as corporate bonds and government securities. One should consider investing in this fund if the risk appetite is medium as corporate bonds are not that risky. Fund E In case one invests in this fund, a portion of not more than 50 percent of the invested money will be put in equity. You should choose this retirement plan only if your risk appetite is high, as up to 50 percent of your money will be linked to the performance of equity. Fund G In this case, all your money will be invested in government securities. Hence, this is suited for risk-averse investors. One can choose to invest in any of these funds. You may also invest in a mix of these funds. If you do not choose between these funds, your contributions will be invested in a fund with 15 percent in equity, 45 percent in corporate bonds and 40 percent in government bonds. With increase in age, after 35 years, the government bond exposure will increase with a maximum limit of 80 percent and 10 percent each in equity and corporate bonds. Fixed income pension plan The government has proposed to extend the 'fixed income pension plan' to workers in the unorganised sector. The monthly contributions one makes will be invested as per NPS guidelines. The State funds for the savings scheme will be added to this. If any gap exists between the sum guaranteed and sum generated from the two steps, the central government will provide the required funds. The new plan will be started off initially in Haryana, Karnataka and Andhra Pradesh. This amendment is meant only for workers in the unorganised sector. Central and State government employees will continue to get pension through NPS. Tax benefit Presently, NPS does not offer any tax exemptions unlike other retirement plans. It falls under the category of exempt-exempt-tax (EET) system which means that maturity benefits you receive after retirement will be taxable. However, with the Direct Tax Code coming in NPS will be tax exempted on withdrawal too. Source:

source-Economic Times

Interest cannot be paid for delay in payment of Revised Pensionary benefits

Interest cannot be paid for delay in payment of Revised Pensionary benefits

Central Administrative Tribunal
Principal Bench, New Delhi.

OA-3559/2009

New Delhi this the 30th day of September, 2010.

Hon ble Dr. A.K. Mishra, Member (A)


Sh. Ashwani Kumar Luthra,
S/o Sh. late Sh. M.K. Luthra,
Chief Commissioner of Income Tax,(Retired),
Holder of PPO No. 557030600655,
R/o H.No. W 6A/10 Western Avenue,
Sanik Farms, New Delhi-110062. .. Applicant

(through Sh. Nitin Gaur, Advocate)

Versus

1. Union of India through
Secretary to Govt. of India,
Ministry of Finance (Implementation
Cell), North Block, New Delhi.

2. Chief Commissioner of Income Tax,
Aayakar Bhawan, Hoshangabad Road,
Bhopal (Madhya Pradesh) 462011.

3. Central Pension Accounting Officer,
Trikoot II, Bhikaji Kama Place,
New Delhi-110006.

4. Zonal Accounts Office, Zonae-II,
Office of the Principal Chief Controller
of Accounts, Central Board of Direct
Taxes, Income Tax Department,
82 Maharana Pratap Nagar,
Bhopal (MP). .. Respondents

(through Sh. VSR Krishna, Advocate)


O R D E R

This is an application for payment of interest for the delay in release of the retiral benefits of the applicant.

2. The applicant was a Member of the Indian Revenue Service (IRS-IT) of 1970 batch who retired as Chief Commissioner of Income Tax (CCA), Madhya Pradesh and Chhatisgarh at Bhopal on 30.09.2006. He was paid pension and other retiral benefits on the basis of pre-revised pay scale. However, consequent on implementation of the recommendations of the 6th Pay Commission, he was entitled to revised pension and other benefits in terms of his revised pay. Government of India released the O.M. dated 30.08.2008 introducing Central Civil Services (Revised Pay) Rules 2008 and further issued a clarification about its implementation in the O.M. dated 13.09.2008. According to the applicant, his revised retiral dues were released only on 21.05.2009 after a delay of 8 months. He is not claiming any interest in respect of arrears of pay; and is confining his claim to the retiral benefits only.

3. The respondents have clarified that the revised pay of the applicant could not be fixed for want of his service-book, which was kept in the custody of the applicant himself even after his retirement from service. His service-book was received on 24.11.2008 and thereafter, on conclusion of pre-check of his verified pay particulars his arrears of pay were calculated and payment was released on 30.12.2008. The delay in pay fixation in the revised scale, according to the respondents, is largely attributable to the applicant who had kept possession of his service-book even after his retirement.

3.1 According to the instructions of the Government, a pensioner had to exercise an option for commutation of his pension calculated
on the revised scale. On scrutiny of his pension papers, it was noticed that his option for revised commutation was wanting and he was, therefore, requested to exercise his option. The option paper was received by the Commissioner Income Tax, Bhopal only on 27.01.2009. Thereafter, the papers were scrutinized and forwarded to the Central Pension Accounting Office (CPAO). But these were returned for want of information in respect of (i) date of revised reduced pension, (ii) the last pay drawn by the applicant in the revised pay pension. These deficiencies were supplied and the correct pension authority was issued on 17.04.2009 to the CPAO, who, in their turn, sent it to the bank on 26.05.2009.

3.3 It is pointed out that the papers of the applicant were processed with due alacrity at all levels and there is no unreasonable delay in payment of retiral benefits of the applicant.

4. The applicant has submitted in the rejoinder-affidavit that he had sent his option by fax to the Bhopal office on 18.12.2008. He has disputed the fact of receipt of his option as late as on 27.01.2009 as claimed by the respondents.

4.1. At the time of hearing the learned counsel for the applicant tried to draw my attention to a copy of the option letter sent by the applicant by fax. Although he was strenuously trying to say that it was dispatched and received on 18.12.2008, this assertion could not be proved. The entries about dispatch and receipt of the fax at the top of the option letter are very indistinct and do not prove the assertion of the applicant.

5. The learned counsel for the respondents submits that it is not a case where there was an inordinate delay in payment of retiral dues. According to him, the pension papers could be processed only after getting the service-book from the custody of the applicant and subsequently the option letter. If the admitted date of receipt of option letter is taken to be 27.01.2009 the delay involved is only 3 months which is within the permissible grace period in view of Government instructions that the delay is to be computed only upto the month preceding the month of actual payment. Even if the assertion of applicant that he exercised option on 18.12.2008 is accepted, the delay is only of one month, which according to the respondents is very negligible.

5.1 The learned counsel for the respondents submits that it is not the case of the applicant that no pension and retiral benefits were released to him after his retirement from service. His claim is only in respect of revised pensionary and other benefits. He points out that the Zonal Accounts Office and the CPAO were faced with unexpected increase in work load as a consequence of implementation of the 6th Pay Commission recommendations. Even inspite of being over burdened with work the claim of the applicant was cleared with expedition. To his knowledge, there has been no ruling for payment of interest for insignificant delay in release of retiral benefits arising out of revision of pay on account of Pay Commission recommendation. The learned counsel for the applicant also could not bring to my notice any ruling on the subject.

6. In the facts and circumstances of the case, I do not find that any case has been made out by the applicant for grant of interest as claimed by him in the OA. In the result, the O.A. is dismissed. No costs.


(Dr. A.K. Mishra)
Member(A)


/vv/

Dussehra Greetings

WISHING YOU ALL A
HAPPY AND ENJOYABLE
DUSSEHRA

A disciplinary authority cannot be held entitled to impose

A disciplinary authority cannot be held entitled to impose
economically onerous liability upon an employee

CENTRAL ADMINISTRATIVE TRIBUNAL
PRINCIPAL BENCH

OA No.841/2010

New Delhi, this the 30th day of September, 2010

HON BLE MR. JUSTICE S.D. ANAND, MEMBER (J)
HON BLE MR. SHAILENDRA PANDEY, MEMBER (A)


Sh. Charan Singh,
S/o Late Shri Tej Ram,
R/o B-154, Gali No. 1,
Rajbir Colony, Gharoli Extension,
Delhi-110096. Applicant.

(By Advocate Shri Sant Lal)

Versus

1. The Union of India, through the
Secretary, M.O. Communications
& I.T. Dept. of Posts,
Dak Bhawan, New Delhi-110001.

2. The Chief Postmaster General,
Delhi Circle, Meghdoot Bhawan,
New Delhi-110001.

3. The Sr. Superintendent of Post Offices,
Delhi East Division, Delhi-110051. Respondents.

(By Advocate Shri Ashish Nischal for Shri Rajinder Nischal)

ORDER (ORAL)

Justice S.D. Anand:

The applicant herein was in employment of the respondents as a Postal Assistant at the relevant point of time. He initially joined employment as a Packer, in the Group `D cadre w.e.f. 02.02.1987. He became a Postman, on promotion, in the year 1990. He earned further promotion in the cadre of Postal Assistant w.e.f. 20.04.1992.

2. On account of dereliction, the disciplinary proceedings under Rule 16 of the CCS (CCA) Rules, 1965 (hereinafter referred to as `the 1965 Rules ) came to be initiated against him vide Memo dated 22.09.2005. The impugned dereliction on the part of the applicant herein constituted violation of Rule 3 (I) (ii) and (iii) of the CCS (Conduct) Rules, 1964 (hereinafter referred to as `the 1964 Rules ). While declining the plea made by the applicant for the certified copies of eight relevant documents (vide application dated 07.10.2005), the disciplinary authority granted permission to him to inspect the records. Ultimately, a penalty of recovery of Rs.31,500/- was imposed upon the applicant, vide order dated 31.01.2006. The amount was recoverable from out of the salary of the applicant in 15 monthly installments. Further, the revisional authority enhanced the penalty to Rs.1,23,860/-.

3. The applicant did not file an appeal against the initial order of penalty. We need not go into the aspect of validity or otherwise of the verbal presentation presently made that it was only on account of inadvertence that the appeal could not be filed. It is, however, apparent that the applicant filed a revision petition and requested the revisional authority to treat it as an appeal. While rejecting that appeal, the revisional authority enhanced the amount of penalty recoverable to Rs.1,23,860/-. The amount already recovered was ordered to be adjusted against the enhanced penalty aforementioned.

4. The applicant herein has challenged the initial imposition of penalty and also the enhancement of penalty.

5. The learned counsel, appearing on behalf of the applicant, vehemently canvasses that the impugned enhancement which came about after duration of little more than three years, could not be held to be a valid exercise of power in terms of Rule 29 of the relevant Rules.

6. It is common ground that all that the rules provide is that the exercise has to be initiated and concluded within a reasonable period. The rules do not indicate the exact time frame within which such an exercise is to be concluded.

7. The validity of such a Rule came for consideration before a Division Bench of Gujarat High Court in Union of India & Ors. Vs. Vikrambhai Maganbhai Chaudhari (Civil Application No.16575 of 2005). The relevant notification was invalidated with the observations which are extracted hereunder:

3. Perusal of sub rule (vi) demonstrates that authority can exercise the power within such time as may be prescribed in such general or special order at any time either on his or its own motion or otherwise call for the record of any inquiry and revise any order made under these Rules. The general or specified order should specify the time within which the power can be exercised at any time. Notification issued under this Rule is as follows:-

No.50In exercise of the powers conferred by clauses (vi) of Sub Rule (1) of Rule 29 of Central Civil Services (Classification, Control and Appeal) Rules, 1965, the President, hereby specifies that in a case of Government servant serving in the Department of Posts for whom the appellate authority is subordinate to the authority designated as the Principal Chief Postmaster General or the Chief Postmaster General (other than the Chief Postmaster General of Senior Administrative Grade) of a Circle, the said Principal Chief Postmaster or the said Chief Postmaster General, as the case may be, shall be the revising authority for the purpose of exercising the powers under the said Rule 29.

4. From the above quoted Notification, it is crystal clear that it has not specified any time limit within which power under Rule 29 (1) (vi) is exercisable. Accordingly, Notification is not in accordance with Rule 29, therefore, it has rightly been quashed by the Central Administrative Tribunal, Ahmedabad Bench. We find no merit in this petition and the same is dismissed.

8. There can, thus, be no escape from the conclusion that the impugned enhancement was not valid.

9. In so far as the initial imposition of penalty is concerned, there also the respondents are not on a firmer ground. The pleadings raised by the respondents do not, at all, indicate that any inquiry into the alleged dereliction on the part of the applicant had been held. This fact was very fairly conceded by the learned counsel for the respondents before us when we called upon him to invite our attention to any documentation which could prove that any inquiry in the matter had been held. His plea, in the face of that predicament, that the penalty imposed amounted to a minor punishment and that it was not incumbent on the part of the disciplinary authority to get an inquiry held, is neither hear nor there. Hear, thus, was a case, in which there was a precise allegation against the applicant to the effect that he refrained from performing the duty which led to pecuniary loss to the Government. It was incumbent upon the department to prove that the applicant herein indeed was charged with the responsibility of performing an act which he did not and which (refrain from performance) led to the loss to the State exchequer. A disciplinary authority cannot be held entitled to impose economically onerous liability upon an employee just like that. The proceedings in the context must have, to say the least, semblance of what goes in the name of an inquiry. By the very nature of things, the imposition of penalty of this type must be preceded by the adjudication of accountability at the hands of the inquiring authority.

10. In the light thereof, even the initial imposition of penalty cannot be upheld.

11. We would, accordingly, allow this O.A. The impugned orders imposing the initial penalty of Rs.31,500/-and also enhancement of the penalty of Rs.1,23,860/- shall stand quashed. There shall be no order as to the costs of the cause.



(Shailendra Pandey) (S.D. Anand)
Member (A) Member (J)

`SRD

India Post Celebrating National Postal Week

Message of Shri Santosh Kumar Kamila,PMG Berhampur Region on eve of National Postal Week

IPO Exam-2009 result announced

IPO Exam-2009 result announced

Congratulations to all the qualified candidates.

Shri Y Pallaya SA,RMS BG Dn. and now PA(CO) o/o PMG Berhampur has become the IPO topper in Orissa Circle.postalifo congratualates him for his record success