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Government of India
Ministry of Personnel, Public Grievances & Pensions
Department of Personnel & Training
Estt. (Pay-I) Section
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Recovery / waiver of the wrongful / excess payments made to Government
servants.
Department of Personnel & Training has issued instructions from time to time
regarding recovery of wrongful / excess payments made to Government servants. The
essence of these instructions has been summarized in the following paras for guidance
and better understanding.
I. Supreme Court Judgments on the matter of recovery of excess
payments:
The issue of recovery of wrongful/excess payments made to Government servants
was examined by the Department of Personnel & Training in consultation with the
Department of Expenditure and the Department of Legal Affairs in the light of the
following judgments of the Hon’ble Supreme Court:
(i) Chandi Prasad Uniyal and Ors Vs State Of Uttarakhand And Ors, 2012 AIR
SCW 4742, (2012) 8 SCC 417, decided on 17th August, 2012
(ii) State of Punjab & Ors Vs Rafiq Masih (White Washer) etc in CA No.11527 of
2014 (Arising out of SLP(C) No.11684 of 2012) decided on 18th December,
2014.
II Procedure to deal with the issue of wrongful/excess payments:
In view of the law declared by Courts and reiterated by the Hon’ble Supreme Court
in the case of Chandi Prasad Uniyal and Ors Vs State of Uttarakhand and Ors, 2012 AIR
SCW 4742, (2012) 8 SCC 417, the Ministries/Departments were advised to deal with the
issue of wrongful/excess payments as follows:
i. In all cases where the excess payments on account of wrong pay fixation, grant
of scale without due approvals, promotions without following the procedure, or
in excess of entitlements etc. come to notice, immediate corrective action must
be taken.
ii. In a case where the authorities decide to rectify an incorrect order, a showcause notice may be issued to the concerned employee informing him of the
decision to rectify the order which has resulted in the overpayment, and
intention to recover such excess payments. Reasons for the decision should be
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clearly conveyed to enable the employee to represent against the same.
Speaking orders may thereafter be passed after consideration of the
representations, if any, made by the employee.
iii. Whenever any excess payment has been made on account of fraud,
misrepresentation, collusion, favoritism, negligence or, carelessness, etc., roles
of those responsible for overpayments in such cases, and the employees who
benefitted from such actions should be identified, and departmental/criminal
action should be considered in appropriate cases.
iv. Recovery should be made in all cases of overpayment barring few exceptions of
extreme hardships. No waiver of recovery may be allowed without the approval
of Department of Expenditure.
v. While ordering recovery, all the circumstances of the case should be taken into
account. In appropriate cases, the concerned employee may be allowed to
refund the money in suitable installments with the approval of Secretary in the
Ministry, in consultation with the Financial Adviser (FA).

ANNEXURE
List of OMs mentioned in this Document
1. DoPT’s OM No 18/26/2011-Estt (Pay-I) dated 06.02.2014
2. DoPT’s OM No. 18/03/2015-Estt (Pay-I) dated 02.03.2016