Rule 15 - Waiver of Recovery
Original Rule Text
Rule 15: Waiver of recovery of overpayment made to Government servants– (1) A Department of Government of India, an Administrator and any other Subordinate Authority to the Department, to whom powers may be delegated by or under special order of the President, may waive the recovery of an amount found to have been overpaid mistakenly to a Government servant, in excess of their entitlement, subject to the following conditions, namely: -
(i) the amount disallowed has been drawn by the Government servant concerned under a reasonable belief that he was entitled to it; and
(ii) if, in the opinion of the aforesaid authority –
(a) recovery will cause undue hardship; or
(b) recovery is impossible.
(2) A Department of Government of India may waive recovery of overpayment upto Rs. 2,00,000/- (Rupees Two Lakhs only)in the case of each individual with the concurrence of Financial Advisers of the Department. Proposals for waiver of recovery of amount greater than Rs. 2,00,000/- (Rupees Two Lakhs only) in each case shall be referred to the Finance Ministry for concurrence.
(3) For the cases of waiver of recovery, the Departments of the Government of India will examine whether over payment has been made on account of fraud, misrepresentation, collusion, favouritism, negligence or carelessness on the part of those responsible for over payments and the employees who benefitted from such actions. All proposals of waiving of recovery will be accompanied by a report in this regard duly approved by the disciplinary authority.
Government of India’s Decision (1): Waiver of recovery of excess payment made to Government employees - General instructions for Ministries/ Departments – A Department of Government of India, an Administrator and any other Subordinate Authority to the Department, to whom powers may be delegated by or under special order of the President, may waive the recovery of an amount found to have been overpaid mistakenly to Government servant, in excess of their entitlement, subject to certain conditions and financial limits as laid down under this rule.
2. The date of order for recovery of overpayment is a critical input for decision regarding waiver of such recovery. Therefore, such order for recovery of overpayment should be issued within one month from the date of detection of overpayment.
3. As per Rule 15 of DFPR 2024, a Department of Government of India may waive recovery of overpayment upto Rs. 2,00,000/- (Rupees two lakh only) in the case of each individual with the concurrence of Financial Adviser of the Department. The following guidelines may be adhered to while processing such cases:
(i) The Ministries/ Department should examine all proposal
(s) in terms of the provisions laid down in Rule 15 of DFPRs.
(ii) Ministries/ Departments should verify that in cases of waiver, no serious negligence has taken place on the part of any Government servant, which may call for disciplinary action by a higher authority.
(iii) In case a Ministry/ Department is of the view that the loss is on account of a defect in existing rules or procedures, the same shall be brought to the notice of Department/ Ministry with authority to amend such rules or procedures.
(iv) The guidelines issued by DoP&T vide its O.M. dated 02.03.2016 (Appendix- II) shall be strictly adhered to by the administrative Ministry/Department while considering waiver of excess payment made to Government servants. Each case of waiver should be recommended by the Financial Advisor and approved by the Administrative Secretary.
(v) In cases where the waiver of recovery arises from a Court direction, the Ministries/ Departments should satisfy themselves that there is appropriate justification for not challenging such Court direction.
(vi) In case a recovery which is subsequently waived is on account of
incorrect interpretation of rules or procedures, Ministries/ Departments may review all similarly placed cases to check requirement of waiver of recovery in future cases. In case of incorrect interpretation of rules or procedures, Ministries/ Departments shall take appropriate measures to ensure that such lapses are corrected. If any inquiry has been made to fix the responsibility, the final report as well as action taken by the Ministry may be kept on record.
(vii) In case an incorrect interpretation of rules or procedures (e.g., incorrect pay fixation) has remained un-detected over a long period of time, Ministry/ Department may keep on record appropriate justification why such cases were not noticed during regular review, internal audit, etc.
What This Means
Rule 15 of the Delegation of Financial Powers Rules (DFPR), 1978, focuses on how government departments should handle situations where money has been incorrectly paid out and the department is considering waiving the recovery of that money. Essentially, it's about ensuring fairness, accountability, and preventing future errors. The rule applies when an overpayment has been made to a government employee or another party, and the department is contemplating not recovering the excess amount. It affects all government ministries and departments, as well as any government employee who might be subject to an overpayment.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Key Points
- 1Ministries/Departments must examine all proposals for waiver of recovery based on Rule 15.
- 2Departments must verify that no serious negligence by a government servant led to the overpayment before considering a waiver.
- 3If the overpayment resulted from a flawed rule or procedure, the relevant authority must be notified to amend it.
- 4Waiver of excess payment to government servants requires recommendation by the Financial Advisor and approval by the Administrative Secretary, adhering to DoP&T guidelines.
- 5If a court directs a waiver, the department must justify why the court's direction shouldn't be challenged.
Practical Example
Ms. Sharma, a clerk in the Ministry of Agriculture, was mistakenly paid ₹10,000 extra in her salary for three months due to a clerical error. The accounts department discovered the overpayment and initiated recovery. However, Ms. Sharma appealed, claiming financial hardship. The Ministry, following Rule 15, examined the case. They found no serious negligence on Ms. Sharma's part and that the error was solely due to a system glitch. The Financial Advisor recommended a waiver of the recovery, considering Ms. Sharma's circumstances and the relatively small amount. The Administrative Secretary approved the waiver, ensuring compliance with DoP&T guidelines. The Ministry also reported the system glitch to the IT department for correction to prevent future errors.
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Frequently Asked Questions
What does 'waiver of recovery' mean in the context of Rule 15?▼
Who is responsible for ensuring compliance with Rule 15?▼
What happens if the overpayment was due to a defect in existing rules?▼
Are there specific guidelines to follow when considering a waiver of excess payment to government servants?▼
What should be done if a court orders a waiver of recovery?▼
This explanation was generated with AI assistance for educational purposes. Always refer to the official gazette notification for authoritative text.
Test Your Knowledge
Question 1 of 3
According to Rule 15 of the Delegation of Financial Powers Rules, 1978, what is the primary responsibility of Ministries/Departments when considering a waiver of recovery of an overpayment?