Frame guidelines for financial recovery from officials, Lokayukta tells Kerala government

The Kerala Lokayukta has asked the State government to issue a government order or an office memorandum within two months, laying down guidelines regulating the recovery of excess payments made to government officials.

A Division Bench of the Lokayukta consisting of Justices N. Anilkumar, Lokayukta, and V. Shircy, Upa Lokayukta, recently issued the order on a complaint from George Chacko, a former Registrar of the Kerala State Commission for Backward Classes.

Mr. Chacko challenged an order of the Accountant General (AG) asking him to refund ₹65,520, which, according to the AG, was paid in excess towards his Leave Travel Concession. Aggrieved by the action, Mr. Chacko approached the Lokayukta seeking appropriate relief against what he termed as an illegal and arbitrary recovery proceedings.

After retirement

The Lokayukta noted that the recovery was sought long after the retirement of the complainant. The Supreme Court had listed the circumstances under which such recoveries are not permitted. Moreover, the Government of India had issued a comprehensive office memorandum to implement the apex court directives regarding the recovery. However, the State government has not issued a corresponding government order or circular adopting similar guidelines.

In the absence of such a policy decision, departmental authorities are placed in a state of uncertainty, and recoveries are initiated mechanically based on audit objections without due regard to the binding legal principles. The situation undermines uniformity in administration and results in avoidable litigation and hardship to retired employees, the Lokayukta pointed out.

A welfare State is under a constitutional and moral obligation to act fairly and reasonably, especially in matters concerning pensionary and retirement benefits. Pension and retirement dues are not bounties but deferred wages. The State government has a duty to frame clear guidelines in conformity with the law declared by the Supreme Court to ensure that recoveries are not affected in cases where they are legally impermissible, the forum pointed out.

The Lokayukta also ordered that no recovery process shall be initiated until a final decision is taken in accordance with the law.