In a significant development for Central Government employees and retirees, the Department of Expenditure under the Ministry of Finance held a high-level meeting on July 2, 2026. Under the chairmanship of the Secretary, Department of Expenditure (DOE), representatives of the Standing Committee Members of the National Council – JCM gathered to discuss the rationalization of policies regarding the recovery of wrongful or excess payments made to government employees.
The meeting was convened following directions from the Cabinet Secretary during the 49th National Council (JCM) Meeting to address ongoing hardships faced by serving and retired personnel due to illegal recoveries.
The Core Issue: Violation of Guidelines and Supreme Court Judgments
The Staff Side—led by Secretary Com. Shiva Gopal Mishra alongside Com. Guman Singh, Com. C. Srikumar, and Com. Rupak Sarkar—strongly raised concerns over improper recoveries. They argued that current recovery actions on the plea of “wrongful or excess payment” directly violate:
- The landmark Hon’ble Supreme Court Judgment (State of Punjab & Ors vs Rafiq Masih (White Washer) etc. in CA No.11527 of 2014).
- Department of Personnel and Training (DoPT) instructions dated 04/03/2016 (and OM Dated 02.03.2016).
- Department of Expenditure (DOE) instructions dated 01/04/2024.
The Staff Side submitted a formal Note enclosing supportive court judgments, demanding streamlined procedures to safeguard employees from unnecessary financial and mental distress.
Also Read: Proposed 8th Pay Commission Pay Matrix Table: Expected Basic Pay Scale Calculator & Structure
Key Demands Raised by the JCM Staff Side
To prevent delays and administrative roadblocks, the National Council (Staff Side) proposed a structured delegation of powers for waiving recoveries:
1. Decentralization and Delegation of Waiver Powers
- Up to ₹5 Lakhs: The power to waive recoveries falling under the five permissible categories defined in the DoPT Office Memorandum (OM) dated 02.03.2016 should be delegated directly to the Head of the Department (HOD) to avoid unnecessary delays.
- Between ₹5 Lakhs and ₹10 Lakhs: Waiver authority should be delegated to the respective Ministries or Departments.
- Above ₹10 Lakhs: Only cases exceeding this amount should be referred to the Department of Expenditure.
2. Streamlining the Waiver Process
- Immediate Notice: As soon as an overpayment to an individual employee is identified, HODs should immediately inform the employee and initiate steps for a waiver if it fits within the specified DoPT guidelines.
- Fixing Responsibility Should Not Delay Waivers: The process of granting a waiver must not be held up under the guise of “fixing responsibility”. The JCM noted that excess payments are usually caught after a lapse of many years, by which time the responsible officers have often retired or transferred, and relevant documents may no longer be available.
Administrative Lapses: Employees Should Not Pay for Government Mistakes
The Staff Side highlighted critical concerns regarding how audit teams handle service records and the subsequent hardships imposed on staff:
- Double Auditing Issues: JCM pointed out that subsequent audit teams frequently re-examine service periods that were already checked and approved by prior audits. This leads to retroactive objections regarding excess leave, or wrong pay fixations under promotion/MACP, causing immediate salary and terminal benefit deductions without proper waiver review.
- No Fault of the Employee: The Staff Side emphasized that these so-called excess payments occur strictly due to administrative oversight and mistakes, not employee fault. Therefore, employees should not be made victims of administrative lapses.
- Specific Grievances: Specific instances of unfair recoveries being forced upon retiring or retired Railway Protection Force (RPF) Staff were explicitly brought to the Secretary’s attention.
“Employees & Pensioners should not be forced to approach Court for implementation of Supreme Court Judgment & Government Orders.” — National Council (Staff Side) Note
Government Response and Next Steps
The meeting concluded on a positive note. The Secretary, Department of Expenditure, assured the JCM representatives that the proposals submitted by the Staff Side will be actively considered in close consultation with the DoPT.
The Ministry has promised that necessary, updated guidelines will be issued soon to resolve these procedural gaps, potentially saving thousands of central government employees and pensioners from undue legal battles and financial strain.
Follow us on WhatsApp, Telegram, Twitter and Facebook for all latest updates
