Y Hari Babu vs EMPLOYEES PROVIDENT FUND ORGANISATION (EPFO) on 14 October 2026

ORAL ORDER

(As per Hon’ble Mr. Manish Garg, Judicial Member)

The instant O.A. has been filed by the applicant, seeking the following relief: “It is therefore prayed that this Hon’ble Tribunal in the interest of justice may be pleased to declare the proceedings AP/GNT/HRM/PENSION/PPO NO.APGNT000334/2024, dt.05- 09-2024 issued by the 3rd Respondent is arbitrary, illegal and in violation of Article 14, 16 and 21 of Constitution of India and also contrary to the Judgments of Supreme Court of India and to Quash or set aside the same, and to issue a consequential direction to the 3rd Respondent to release the interest @ 18% on delayed payment of pension and encashment of earned leave forthwith and to pass such other order of orders which are deemed fit and proper in the circumstances of the case.”

2. Highlighting the facts of the case, learned counsel for the applicant submits that the applicant superannuated on 31.05.2022. A provisional pension order was issued. It is to be noted that the retiral dues were sanctioned vide Office Order dated 28.03.2024 and accordingly released. It is the case of the applicant that no departmental proceedings nor charge memo was pending consideration before the competent authority. The payment was withheld on account of FIR No. RC0362022A0005 dated 01.02.2022 (page 10 of the paper book) pending consideration under various provisions of the Prevention of Corruption Act, 1988 and IPC. He further submits that though the applicant was named as Accused No.4 in the said matter, however, the CBI dropped him in the charge sheet vide letter dated 27.02.2024 and benefits were released only in March, 2024. It is to be noted DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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that though a show cause notice dated 25.02.2022 was purportedly issued to the applicant, which reads as under: “SHOW CAUSE NOTICE Whereas, an FIR has been registered by Central Bureau of Investigation, Anti-Corruption Branch vide FIR No. RC0362022A0005 dt.01-02-2022 under section 120B of the Indian Penal Code and under section 7, 7A and 8 under PC Act 1988 (as amended in 2018) at PS ACB, Visakhapatnam against Shri Yarraguntla Hari Babu, Senior Social Security Assistant, Regional Office, Guntur alleging that he took undue advantage in the form of money, unauthorizedly obtained through different mobile payment apps, such as Paytm, PhonePe and Google Pay etc. and these payments are other than legal remuneration to be paid to the employee by the employer i.e., Employees’ Provident Fund Organisation, Ministry of Labour & Employment, Government of India. Whereas Shri Yarraguntla Hari Babu, Senior Social Security Assistant has been alleged “Shri Eesa Ramanjaneyulu, Sr.SSA shared a phone number 9063702306 with Shri Y. Hari Babu, Senior Social Security Assistant for PhonePe or Google Pay transfer. This phone number is in the name of Shri Swarna Sreenivasulu, S/o Swarna Chinna Subbaiah, R/o 16/65-1, Gajula Street, Masapet, Kadapa. It appears that the suspect is routing the ill-gotten money through the digital wallets of others. Shaik Mansoor, P.F. Consultant regularly communicates with Shri Y. Haribabu and on 03-06-2020 he asked Shri Y Hari Babu to share his PhonePe number. Shri Srinivas Padala, saved in the mobile phone of Shri Y.Haribabu as “Satuluri”, communicated “Sir did you receive my cover”. “Money send to you plz check and inform” to Shri Y.Haribabu.” DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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In view of the above unbecoming and highly objectionable acts on his part Shri Yarraguntla Hari Babu, Senior Social Security Assistant directed to submit his explanation on the allegations leveled against him by the CBI, ACB, Visakhapatnam within (ten) days from the date of receipt of this Notice, failing which it will be presumed that the Official has nothing to submit in this regard and action as per the provisions of Employees’ Provident Fund Staff (CCA) Rules, 1971 as well will be initiated against him.” However, the said show-cause notice was not taken to its logical conclusion by initiating disciplinary proceedings.

3. Counsel for the respondents relies upon the averments contained in the counter affidavit. It has been vehemently argued that there is no provision under law or any statute for payment of interest on delayed payments made. He has further relied upon the decision rendered by the Hon’ble Supreme Court in Chief General Manager, Gujarat Telecom Circle, BSNL vs. Manilal Ambalal Patel [(2019) 5 SCC 545]wherein the order passed by the Tribunal and the Hon’ble High Court for grant of interest on delayed payment of DCRG and commuted value of pension came to be rejected as against the employee. Counsel for the respondents relies on O.M. dated 05.10.1999, which pertains to leave encashment, and further relies upon O.M. dated 31.10.2022. Both the said Office Memoranda issued by the Government of India, Ministry of Personnel, PG & Pensions, Department of Pension & Pensioners’ Welfare, provide that there is no provision for payment of interest on belated payment of commutation of pension and leave encashment.That is not the issue herein. DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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4. In rejoinder to the argument put forth by the counsel for the respondents, learned counsel for the applicant relies on the decision rendered in S.K. Dua vs. State of Haryana &Anr.[(2008) 3 SCC 44 ]. The relevant portion of the said judgment reads as under: “In the circumstances, prima facie, we are of the view that the grievance voiced by the appellant appears to be well-founded that he would be entitled to interest on such benefits. If there are Statutory Rules occupying the field, the appellant could claim payment of interest relying on such Rules. If there are Administrative Instructions, Guidelines or Norms prescribed for the purpose, the appellant may claim benefit of interest on that basis. But even in absence of Statutory Rules, Administrative Instructions or Guidelines, an employee can claim interest under Part III of the Constitution relying on Articles 14, 19 and 21 of the Constitution. The submission of the learned counsel for the appellant, that retiral benefits are not in the nature of ‘bounty’ is, in our opinion, well- founded and needs no authority in support thereof. In that view of the matter, in our considered opinion, the High Court was not right in dismissing the petition in limine even without issuing notice to the respondents.”

5. It is relevant to reproduce the sanction order dated 28.03.2024, which reads as under: “SANCTION ORDER” Approval of the Competent Authority is hereby conveyed for payment of the following Superannuation Retirement benefits to SHRI. YARRAGUNTLA HARI BABU, SSSA, REGIONAL OFFICE, GUNTUR, who retired from the services of EPFO w.e.f. 31.05.2022 on account of Superannuation as detailed below: I) Retirement Gratuity: Rs.11,09,520/- (Rupees Eleven Lakhs Nine Thousand Five Hundred and Twenty Only) under Rule 50(1)(a) of DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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CCS (Pension) Rules, 1972. As the pension is being released from 01.04.2024 due to reduction in pension on account of commutation of pension, an amount of Rs.2,42,880/- was deducted from retirement gratuity and hence an amount of Rs.8,66,640/- may be paid to the retired official towards Retirement Gratuity. II) Retirement Basic Pension: Payable is Rs.27,600/- (Rupees Twenty Seven Thousand and Six hundred Only) per month plus Dearness relief as admissible from time to time with effect from 01.04.2024 under Rule 49 (2)(a) read with GID(4) of CCS (Pension) Rules, 1972. III) Commuted value of Pension: The official is hereby permitted to commute his superannuation Pension to the extent of 40% i.e. Rs.11,040/- as per Appendix I, Rule 5 read with GID(2) and an amount of Rs.10,85,541/- (Rupees Ten Lakhs Eighty Five Thousand Five Hundred and Forty One Only) may be paid to the official as commuted value of pension in one lump sum...” Earlier, vide proceedings dated 27.03.2024, an amount of Rs.7,39,680/- towards earned leave encashment was also sanctioned and credited.

6. Based on the aforementioned ratio laid down by the Hon’ble Apex Court in S.K. Dua (supra), applied to the present case, the decision rendered in Manilal Ambalal Patel’s case (supra) is distinguishable. In that case, the issue of payment of DCRG and commuted value of pension does not arise in the same manner. Here, the issue pertains to the delayed payments of pension and leave encashment. It is also noted that as per Rule 68 of CCS (Pension) Rules, penal interest at the rate applicable to GPF deposits has to be paid and, therefore, it cannot be said that there is no provision to pay interest @ GPF. DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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7. In view of the same, the applicant is entitled to interest for retirement benefits for the period from 31.05.2022 until the date of actual payment, within a period of two months from the date of receipt of the certified copy of this order. Failing which, the applicant shall be entitled to further interest for the delayed period @ 9% p.a. for default.

8. The O.A. is disposed of in the aforesaid terms. All pending MAs, stand closed. No order as to costs.

(VARUN SINDHU KUL KAUMUDI) (MANISH GARG) ADMINISTRATIVE MEMBER JUDICIAL MEMBER

/pv/ DN: C=IN, O=Central Administrative Tribunal, OU=Central Administrative Tribunal Hyderabad Bench, PostalCode=500004, L=Hyderabad, S=Telangana, STREET= No. 05 10 193, 1st Floor, HACA Bhavan, Saifabad, Hyderabad", Phone=12d84631fad4985ed436f8e9bed43bf11c66dc25e028e9218a4d1d0fb79d7fe3, SERIALNUMBER=

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