GUIDELINES OF THE MINISTRY OF DEFENCE FOR PENALTIES IN BUSINESS DEALINGS WITH ENTITIES

GUIDELINES OF THE MINISTRY OF DEFENCE FOR PENALTIES IN BUSINESS DEALINGS WITH ENTITIES

(A) Introduction
A.1 It is imperative that the highest standards of propriety be maintained throughout the process of procurement of defence equipment.

A.2 The procurement process needs to proceed without loss of credibility and therefore, there is a need to put in place appropriate measures to deal with acts of impropriety.

A.3 The following paragraphs lay down the policy and guidelines for Levy of Financial Penalties and/ or Suspension/Banning of business dealings with entities seeking to enter into contract with/having entered into a contract for the procurement of goods and services by the Ministry of Defence.

A.4 In applying the measures provided for under the guidelines, the concerned authorities shall be guided by the need to ensure probity, transparency, propriety and compliance in the defence procurement process. Equally, the concerned authorities shall also ensure fairness, impartiality, rigour and correctness in dealing with entities, keeping in view the overall security interests of the country.

(B) General
B.1 Ministry of Defence will include Department of Defence, Department of Defence Production, Departement of Defence Research & Development, HQ, IDS, Armed Forces Headquarters and their attached/subordinate offices.

B.2 “Entities” will include companies, trusts, societies, as well as individuals and their associations with whom the Ministry of Defence has entered into, or intends to enter into, or could enter into contracts or agreements.

B.3 All firms/companies which come within the sphere of effective influence of the entities shall be treated as its allies firms. In determining this, the following factors may be taken into consideration:-
(i) Whether the management is common or the majority interest in the management is held by the partners or directors of the entities.
(ii) Majority shares are owned by the entity, their directors/shareholders and by virtue of this it has controlling voice.

B.4 Effect of actions, viz., levy of financial penalties and/or suspension/banning of business dealings with an entity in accordance with these guidelines may, with the approval of the competent authority also apply when an entity participates in the procurement process as member of consortium.

B.5 The competent authority for the purpose of these guidelines will be Raksha Mantri.

B.6 The Competent Authority may constitute Committees as necessary, to examine and make recommendations on any matter provided for under the guidelines.

(C) Causes for Suspension and Banning of Business Dealings with Entities
C.1 The competent authority may levy financial penalties and/or suspend/ban business dealings with an entity for one or more of the grounds listed below:-
a) Violation of Pre-Contract Integrity Pact (PCIP) (where such PCIPs are entered into between the Ministry of Defence and an entity).

b) Resort to corrupt practices, unfair means and illegal activities during any stage of bid/contract to secure a contract, even in cases where PCIP is not mandated.

c) Violation of Standard Clause in the contract of agents/agency commissions.

d) If national security considerations so warrant.

e) Non-performance or under performance under the terms and conditions of contract(s) or agreement(s) not covered in grounds listed in (a) to (c) above in accordance with provisions in contract or agreement.

f) Any other ground for which the competent authority may determine that suspension or banning of business dealings with an entity shall be in the public interest.

(D) Suspension
D.1 Suspension of business dealing with an entity may be ordered by the competent authority pending a full proceeding into allegations or facts related to any grounds enumerated in paragraph C.1 (a) to (f) above.

D.2 The competent authority may suspend business dealings with an entity when it refers any complaint against the entity to CBI or any investigating agency or when intimation is received regarding initiation of criminal investigation or enquiry against any entity.

D.3 An order of suspension of business dealings with an entity will be issued for such period as the competent authority may deem fit. The period of suspension shall not ordinarily exceed one year. A review of the Order of suspension of business dealings with an entity shalll be undertaken within six months of the issue of such an Order and before expiry of the period specified therein. The suspension of an entity may be extended beyond the period of one year, on the order of the Competent Authority for subsequent periods of six months each. The total period of suspension of business dealings with an entity shall not exceed the maximum period of banning of business dealings with an entity for the same cause of action.

(E) Effect of Suspension of Business Dealings with an Entity
E.1 An order of suspension of business dealings with an entity shall result in immediate ineligibility of the entity from participating in future bids. No RFP will be issued to such an entity.

E.2 Any on-going procurement process, where L1 determination has not yet been done, will be progressed after excluding the bid involving an entity with which business dealings are suspended. In case there are only two bidders, one being the entity with which business dealings are suspended, the procurement will be progressed as per extant provisions of DPP after excluding such an entity.
E.3 Any on-going procurement process where the lowest bid involves the entity with which business dealings are suspended by order of competent authority, will be held in abeyance till decision of revocation of such order or banning of business dealings with the entity or till expiry of the validity of the existing bid, whichever is earlier. Extension of the validity of the bid involving such entity will not be permitted. On expiry of the bid validity, the procurement process will be terminated and fresh procurement process, if required, may be initiated. In cases of operational urgency, the procurement process may be foreclosed prior to the expiry of the bid validity and a fresh process initiated, excluding the entity with which business dealings are suspended.
E.4 Order of suspension of business dealings with an entity may be extended to its allied firms by specific order of the competent authority.

(F) Banning of Business Dealings with an Entity/Debarment of an Entity
F.1 Banning of business dealings with an entity may be ordered by the competent authority on acceptance of misconduct related to any of the grounds enumerated in paragraph C.1 (a) to (f) above by the entity or establishment of such misconduct by a competent court/ tribunal/ authority
F.2 Banning of business dealings with an entity may be ordered by the competent authority on receipt of information regarding filing of charge-sheet in the court of law by CBI or any other investigating agency.
F.3 The order of banning of business dealings with an entity will be issued for such specified period as the competent authority may deem fit. For the grounds listed in paragraph C.1 (a) to (d) above, the period of banning of business dealings with an entity shall not be less than five years. For the grounds listed in paragraph C.1 (e) and (f) above, banning of business dealings may be resorted to if, in the view of the competent authority, the grounds for action are such that continuation of business dealings with the entity would be detrimental to public interest. In such cases, the period of banning of business dealings with an entity shall not ordinarily exceed three years. The period of Banning of business dealings with an entity in both the categories will be inclusive of period of suspension of business dealings with an entity, if any, for the same cause of action. In exceptional cases and those involving national security considerations the competent authority may order a longer period of banning of business dealings with an Entity, as deemed appropirate.

(G) Effect of Banning of Business Dealings with an Entity/Debarment of an Entity
G.1 An order of banning of business dealings with an entity shall result in immediate ineligibility of the entity, from participating in future bids of a specified period with effect from the date of such order. No RFP will be issued to such an entity.
G.2 Any on-going procurement process where L1 determination has not yet been done will be progressed after excluding the bid involving entity with which the business dealings are banned. In case there are only two bidders, one being the entity with which business dealings are banned, the procurement will be progressed as per extant provisions of DPP after excluding such an entity.
G.3 Any on-going procurement process where the lowest bidder involves an entity with which business dealings are banned, will be terminated and fresh procurement process, if required, may be initiated.

G.4 Orders of banning of business dealings with an entity may be extended to its allied firms by specific order of the competent authority.
(H) Employees / Agents of an Entity

H.1 Any employee or agent of an entity, who is convicted for any act of impropriety, will not be allowed to engage in any bid process in any capacity with the Ministry of Defence, any time in the future.

H.2 Any employee or agent of an entity with which business dealings are suspended or banned and who is involved in a case of alleged impropriety for which investigation or judicial proceedings is in progress, will not be allowed to engage in any bid process in any capacity with the Ministry of Defence even after the expiry of the period of suspension / banning of business dealings with the entity.

(I) Miscellaneous
I.1 The entity with which business dealings are suspended or banned, may with the approval of competent authority, participate in the future RFPs for spares, upgrades, maintenance etc for the equipment/weapon systems supplied earlier by it, if the equipment which is the object of the Contract is a proprietary item and there are no available alternate sources of supply.

I.2 In cases wherein Transfer of Technology (ToT)/Licensed production has been taken in the past for manufacturing of equipment/weapon systems in India from the entity with which business dealings are suspended or banned, may with the approval of the competent authority, participate in the future RFPs related to components/ rotables/ additional items of such equipment/ weapon systems for which the TOT/Licensed production has been taken.

I.3 Any contract(s) related to the procurement process(es) in connection with which business dealings with an entity have been suspended will be held in abeyance. Any contract(s) related to the procurement process(es) in connection with which business dealings with an entity have been banned, shall be cancelled. However, other contracts involving such entity shall continue unless a decision to the contrary is taken by the competent authority, on a case by case basis.

I.4 If it becomes necessary on grounds of national security and operational preparedness / export obligations, to deal with an entity with which business dealings have been suspended or banned, in a procurement process and which is the only source that can supply/manufacture an equipment/weapon systems, the Competent Authority will be approached for approval of issuance of RFP or conclusion of contract with such an entity. Certificates (as provided in Annexure-I) signed by the Vice Chief of the service concerned / CISC / Additional Secretary (Defence Production) will be placed before the Competent Authority. SHQ / Department of Defence Production may propose special conditions to conclude a contract with such an entity.

I.5 The entity with which business dealings have been suspended or banned will not be permitted to transact contracts or agreements under a different name or division either through a transfer of assests of such an entity to another legal entity or otherwise.

I.6 An updated list of entities with which business dealings have been suspended or banned by the competent authotity and/or against which financial penalties have been imposed shall be maintained on the official website of the Ministry of Defence.

(J) Application
J.1 These guidelines shall come into force with immediate effect.

Annexure-I

(Refers to Para-1.4 of draft Guidelines)

CERTIFICATE***
1) The
…………………………………………………………………………………. [equipment/weapon system] is inescapably required for national security and operational preparedness / export obligations and no other alternative/combination of equipment/weapon system can fulfil the requirement.

2) The …………………………………………………………………………………………….. [equipment/weapon system] is not availbale from any other source.

3) It is absolutely necessary to deal with …………………………………………………………………………… [name of the entity] with which business dealings have been suspended or banned for meeting the instant requirement.

**Certificates as above, signed separately by the Vice Chief of the Service concerned / CISC, are to be placed before the Competent Authority.
**Certificate for inescapable requirement on account of export obligations, signed by AS (DP) is to be placed before the Competent Authority.

Authority: www.mod.nic.in

Pensionary benefits of medically decategorised running staff opt for voluntary Retirement

Pensionary benefits of medically decategorised running staff opt for voluntary Retirement

Railway Board Circular on Pensionary benefits of medically decategorised running staff opt for voluntary Retirement Ministry of Railways has issued a Circular on Pensionary benefits of medically decategorised running staff opt for voluntary Retirement

GOVERNMENT OF INDIA MINISTRY OF RAILWAYS (RAILWAY BOARD)

RBE No. 137/2016

No. E(P&A)II-2004/RS-05

New Delhi, dated 29 .11.2016.

The General Managers(P)/CAOs, All Indian Railways & Prod. Units etc.

Sub: Pensionary benefits of medically decategorised running staff who opt for voluntary retirement. Ref: Board’s letter no. E(NG)I-2009/RE-3/9 dated 05-10-2011.

Vide DC/JCM item no. 25/2004, PNM/NFIR Item No. 8/2015 and PNM/AIRF Item No. 46/2012, recognised staff Federations have demanded that 55% of Pay Element be reckoned for computing retirement benefit for those running staff who have been medically decategorised and decide to take Voluntary Retirement instead of opting for redeployment in an alternative stationary post.

2. The issue has been examined in Board’s office, and it is observed that the issue is governed under the provisions contained in Board’s letter referred to above. To address the specific aspect brought out by Federations, it has been decided that whenever a medically decategorised running staff governed by RS(PR)1993. who has rendered the prescribed qualifying service opts for Voluntary Retirement either on his own or within a period of one month from the date of offer of the first alternative post, his pension may be computed with addition of 55% Pay Element. This 55% benefit will be reckoned after deducting the 30% Pay Element fixation benefit if granted already as per Board’s letter dated 05-10-2011 referred to above.

3. In case such staff does not give option of Voluntary Retirement within the outer limit period of one month specified herein above. it will be deemed that the staff has accepted the alternative appointment offered and in this case, retirement benefits will be governed by extant instruction on the issue whenever he superannuates or opts for Voluntary Retirement thereafter.

4. The period of one month to opt for Voluntary Retirement for those medically decategorised running staff, who have already been offered the alternative posts, will start from the date of issue of this letter.

5. The above clarification shall take effect from the date of issue of this letter.

6. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

7. Please acknowledge receipt.

(S. Balachandra Iyer)
Director/Pay Commission,
Railway Board.

Download RBE No. 137/2016 No. E(P&A)II-2004/RS-05, dated 29.11.2016.

Tamil Nadu Govt declares holiday for its offices today

Tamil Nadu Govt declares holiday for its offices today

Chennai: Tamil Nadu government has announced today as a holiday for its offices under the Negotiable Instruments Act, as a mark of respect to late Chief Minister J Jayalalithaa. A Government Order (GO) said the notified public holiday will apply to all state government offices, undertakings, corporations and boards.

“Under the Explanation to Section 25 of the Negotiable Instruments Act, 1881 read with Notification of the Government of India, Ministry of Home Affairs No.20-25-26, Public-1, dated 8th June 1957 the Government of Tamil Nadu hereby declares that Tuesday, the 6th of December, 2016 as a public holiday as a mark of respect to the late Selvi J Jayalalithaa, Hon’ble Chief Minister of Tamil Nadu,” it said.

The day will be also treated as a paid holiday for all industrial employees on regular work charge and industrial establishments and the labour hired on daily wages, it said. The government also issued another order declaring three days holidays for “all educational institutions” starting today. The holidays were being declared “as a mark of respect” to the late leader, the GO said.

 PTI

7th Pay Commission: Finmin gets 2 months more to issue higher allowances notification

7th Pay Commission: Finmin gets 2 months more to issue higher allowances notification

New Delhi: The Finance Ministry has got 2 months extension to issue the higher allowances notification under 7th Pay Commission recommendations, a Finance Ministry official said on Monday on condition of anonymity.

"The October-November month is the scheduled for issuing notification for the Finance Ministry, but the time was extended by 2 months because the cash crunch on account of demonetisation, which is taking time to get normality.

Therefor,unless the banks can begin to function with a modicum of efficiency, the government will not issue notification on higher allowances to save demonetisation chaos," the official said.

He further said “the issue of increased financial activities after demonetisation compels the government to keep in abeyance to issue higher allowances notification for getting normalized the position and it is likely to issue from January next, after the the cash crunch will ease.

However the government wants to issue the higher allowances notification speedily in a time bound manner."

The committee on allowances head Finance Secretary Ashok Lavasa said in October, "We are ready to submit our report, when the Finance Minister Arun Jaitley calls up."

The government constituted the committee on allowances in June headed by Finance Secretary Ashok Lavasa to examine the 7th Pay Commission recommendations on allowances, other than dearness allowance.

"The committee has been asked to submit its report within four months and it was ready to submit its report in advance but the government intends to accept the report after December 30, deadline for depositing demonetised notes," the official said.

Existing allowances are now being paid to the central government employees according to the 6th Pay Commission recommendations until issuing of higher allowances notification.

Government asks staff to become ambassadors for digital push

Government asks staff to become ambassadors for digital push

New Delhi: Government has asked its employees to maximise use of debit cards for personal transactions and become 'ambassadors' for promoting digital payments.

The Finance Ministry has asked all ministries/departments to encourage their employees to make use of debit cards for personal transactions instead of cash, an official statement said.

It said that given the progress made in banking technology, it is assumed that each employee would be in possession of a debit/ATM card linked to his/her bank account.

"Ensuring and encouraging government employees to maximise the usage of debit cards for personal related transactions instead of cash would go a long way, with the employees serving as ‘ambassadors’ for the digital push, and also motivate, encourage the general public in taking up the cause," the ministry added.

Government and PSUs have been disbursing salaries to majority of their employees through electronic mode into their bank accounts.

The ministry said that in the recent years, advancements in banking technology, progress in mobile banking and innovative technologies to facilitate digital payments have enabled large number of small denomination transactions to be handled smoothly in electronic mode.

Following the announcement of demonetisation of 500 and 1000 rupee notes on November 8, the government has been taking a slew of measures to promote digital transaction.

While the Finance Ministry has asked public and private sector banks to waive off transaction costs for all payments made through debit cards, the Road Transport Ministry has asked vehicle manufacturers to provide a digital tag on all new cars for e-payments at toll plazas and check posts.
The Finance Ministry has also asked government departments to liaise with their accredited banks and set up special camps to ensure that all its employees are in possession of debit cards.

It also asked other ministries/departments to issue similar advisories to their attached offices, PSUs and autonomous bodies.

PTI

High Court asks RBI to consider issue of salary payment to teachers

High Court asks RBI to consider issue of salary payment to teachers

Mumbai: The Bombay High Court today asked the RBI to consider the issue of payment of salaries to aided school teachers since it is disbursed through district cooperative banks which have been prohibited from depositing and exchanging old currency notes.

The Mumbai, Solapur, Nashik and Pune District Central Cooperative Banks had approached the high court challenging the RBI circular of November 14, restricting them from exchanging or depositing old currency notes of Rs 500 and Rs 1,000, which were declared as illegal tender under the government’s demonetisation move on November 8.

Solapur co-operative bank counsel V M Thorat today informed the court that the bank receives around Rs 95 crore from the state government for salaries of teachers in aided schools, but due to the circular the bank is not able to disburse the amount.

A division bench of Justices A S Oka and Anuja Prabhudessai asked the Reserve Bank to consider the issue.

"RBI needs to consider this issue. We cannot take this matter up on merits as the Supreme Court is already seized of the main contentions raised in the petitions, but this particular issue about teachers’ salaries can be looked into," Justice Oka said.

"It is common knowledge that teachers of aided schools get their salaries from cooperative banks. We want to know how teachers will get their salaries now," the court said.

Thorat informed the bench today that the banks have filed application in the apex court seeking clarification on whether the high court can hear the matter.

"The application along with the transfer petition filed by the Union government seeking for all petitions filed on the demonetisation issue to be heard by SC itself is posted for hearing on December 9," the counsel said.

The high court then adjourned the cooperative banks petitions to December 14.

PTI

7th CPC - Govt will consider the report of Committee, says in Parliament

7th CPC - Govt will consider the report of Committee, says in Parliament

Pay hike after implementation of 7th CPC

GOVERNMENT OF INDIA
MINISTRY OF FINANCE
RAJYA SABHA

UNSTARRED QUESTION NO-1526

ANSWERED ON-29.11.2016

Pay hike after implementation of Seventh Central Pay Commission

1526 . Dr. Sanjay Sinh

(a) the salient features of the Seventh Central Pay Commission;

(b) the percentage of increase in the salaries of employees after the implementation of the recommendations of Seventh Central Pay Commission;

(c) the percentage of increase in the salaries of employees after the fourth, fifth and sixth Central Pay Commission;

(d) whether the extent of pay hike this time is very less as compared to the previous pay hikes; and

(e) whether Government would reconsider it in view of the resentment among employees and pay anomalies?

ANSWER

MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI ARJUN RAM MEGHWAL)

(a): The Seventh Central Pay Commission (7th CPC) has recommended the minimum pay of Rs. 18,000 per month and uniform fitment factor of 2.57 for all employees. The system of Pay Band and Grade Pay has been replaced with separate Pay Matrices for Civil, Defence and Military Nursing Services personnel. The Commission has recommended abolishing 52 allowances and subsuming of another 36 allowances either in an existing allowance or in newly proposed allowances. Allowances relating to Risk and Hardship will be governed by a Risk and Hardship Matrix. The Commission has also recommended revised pension formulation for all personnel who have retired before 01.01.2016 to bring about complete parity of past pensioners with current retirees.

(b) to (e): Salary of all employees will increase by at least 14.29 per cent after the implementation of Seventh Central Pay Commission (7th CPC) recommendations. The 7th CPC has mentioned that increases given in Minimum Pay were 27.6%, 31.0% and 54.0% by Fourth, Fifth and Sixth Central Pay Commissions, respectively. The anomalies arising out of implementation of the recommendations of the 7th CPC will be examined by the Anomalies Committee which has already been constituted. Based on the report of the Committee, the matter will be considered by the Government and appropriate decision will be taken.

Source: http://rajyasabha.nic.in/

7th Pay Commission Anomaly Committee - Agenda Item relates to Disability Pension

7th Pay Commission Anomaly Committee - Agenda Item relates to Disability Pension

Agenda for 1st Anomaly Committee of 7th CPC is given below:

AGENDA FOR DISCUSSION IN THE ANOMALY COMMITTEE MEETING TO BE HELD AT 11.00 A.M. ON 01.12.2016 UNDER THE CHAIRMANSHIP OF SECRETARY, DoPT)

The Agenda for discussion pertains to the issue of demand of Defence Forces Personnel for restoration of the percentage-based methodology for the calculation of Disability Pension to the Defence Forces Personnel. The 7th CPC has recommended a slab-based methodology for calculation of Disability Pension for them. As per their demand, while the 7th CPC has recommended slab-based system for calculation of Disability Pension for the Defence Forces Personnel, it has not made any recommendation for the civilians which continues to be percentage-based. Therefore, their contention is that the proposed slab-based Disability Pension system will lead to an anomaly between the Civilian side and the Defence Forces Personnel.

It has been decided to refer the matter for urgent consideration before the National Anomaly Committee.

2. The recommendations of the 7th CPC on this issue is contained in para no. 10.2.55 which is at Annexure-I.

3. The justification for the recommendation given by the 7th CPC in paras 10.2.49 to 10.2.51 are at Annexure-II, III & IV.

4. The representatives from the Defence Forces Personnel in a meeting held on 11.11.2016 have inter alia contended that:

a) That the 7th CPC-recommended slab-based Disability Pension System will, if implemented, lead to an anomaly between the civilian side and the Defence Forces Personnel because the civilian side will continue to be governed under a percentage- based system.

b) The basis of the 7th CPC recommendations for introduction of the slab-based system for the Defence Forces Personnel, viz. that the percentage of officers retiring with disability element has increased, is erroneous. According to their contention between 5th & 6th CPC, the number of retirement cases with disability element has, in fact, fallen as below:

Rank	5th CPC Regime Range (Slab Based)	6th CPC Regime Range (Percentage Based)
Lt. Col.	12% to 38%	7.5% to 21.2%
Col.	4.8% to 24.9%	3.3% to 23.3%
Brig.	4% to 17%	2.7% to 21.6%
Maj. Gen.	4% to 17.5%	0% to 16.5%
Lt. Gen.	10% to 50%	0% to 15.4%

c) 7th CPC has erroneously assumed that the slab-based system would benefit the lower ranks by narrowing down the gap between the maximum and the minimum. As per their conclusion, except for benefitting a miniscule number of Defence Forces Personnel who would get invalidated out in the lower ranks of service, the slab- based system would be detrimental to most ranks in all superannuation cases.

5. Point-wise inputs on the contention received from the D/o Ex-Servicemen Welfare at Annexure-V are briefly as under:

a) 7th Pay Commission has recommended slab-based system for disability element of disability pension for Defence Forces Pensioners. However, the 7th CPC has not made any recommendation for the civilians. The existing system of disability on percentage-based system would, therefore, continue in civil side. This has led to an anomalous situation.

b) A comparative statement indicating the percentage of retirees with disability during 5th CPC era when slab-system was prevalent vis-a-vis retirees with disability during 6th CPC when percentage system was placed, is as under:

Ranks	Percentage of retirees with disability during 1996 to 2005 (5th CPC)	Percentage of retirees with disability during 2006 to 2015 (6th CPC)
Lt. Col/Equivalent	2.04%-18.3%	7.5%-21.2%
Colonel / Equivalent	1.56%-17.38%	3.3%-23.3%
Brigadier / Equivalent	2.08%-17.42%	2.7%-21.6%
Major General / Equivalent	0.0%-11.27%	0.0%-l 6.5%
Lt. General/Equivalent	0.0%-21.88%	0.0%-15.4%

It could be seen from the data given by CGDA office that percentage of retirees for commissioned officers have increased in 6th CPC regime vis-a-vis 5th CPC.

c) Pre 2016 retirees 
The comparison between slab and percentage system of disability element for pre-1.1.2016 retiree pensioners have been made with reference to pay last drawn by migrating the same in 7th CPC pay structure and also by working out the disability element by linking the same with revised sendee pension under 7th CPC. The statements indicating rank wise, qualifying sendee wise status in both the said scenario are attached as Annexure- V('D' and 'C') respectively. The statement indicates that all commissioned officers are at disadvantage in case the slab recommended by 7th CPC is implemented. However, in case of JCO/ORs, lower ranks are getting benefited under slab rates.

Further the details of 1,09,988 JCO/OR retirees have also been analyzed on actual basis as data for these pensioners were readily available. It could be seen from the outcome tabulated as Annexure-V('D'), that lower ranks of JCO/OR are getting benefited especially Sepoy, Naik & Naib Subedar. Out of 1,09,988 records of JCO/OR processed, 85,640 (77.86%) pensioners would get benefited under slab rates. It is also intimated to the Ministry that pension for all pre-1.7.2014 retirees have been revised under OROP orders. It has been observed/analyzed that the pension of JCO/OR pensioners who are drawing pension on OROP rates (pre-2006 retirees and post-2006 retirees who retired upto 2009-10), are getting benefitted under slab rates of disability pension.

Post 2016 retirees 
For post-1.1.2016 retirees, no comparison has been made as notification relating to pay entitlement are not yet finalized. However, based on the recommendations of 7th CPC, it could be visualized that future progression in new pay structure percentage-based system would definitely be beneficial for post-7th CPC retirees in all ranks.

6. The matter is placed before the National Anomaly Committee for consideration.

Annexure-'I'

Para No. 10.2.55 


The feature that stands out when the historical evolution of the regime relating to disability pension is studied is the shift from slab-based system to a percentage based disability pension regime consequent to the implementation of the 6th CPC's recommendations. This move has been contrary to the tenets of equity insofar as treatment of disability element between Officers and JCOs/ORs is concerned borne out by the fact that the ratio of maximum to minimum quantum of compensation for disability across the ranks is now disproportionately high at 8.6. The Commission is, therefore, of the considered view that the regime implemented post 6th CPC needs to be discontinued, and recommends a return to the slab-based system. The slab rates for disability element for 100 percent disability would be as follows:

Rank	Levels	Rates (in Rs. per month)
Service Officers	10 and above	27,000
Honorary Commissioned Officers
Subedar Major/Equivalent	6 to 9	17,000
Subedar/Equivalent
Naib Subedar/Equivalents
Havildar / Equivalents	5 and below	12,000
Naik/Equivalents
Sepoy Equivalents

Annexure-'II'

10.2.49: The notable facts about the disability payout regime are:
a) There was a gradual rationalization in the number of slabs from eight, prior to 3rd CPC to three after the 4th CPC.

b) The ratio of maximum to minimum quantum of compensation for disability across the ranks witnessed a decline from 4.85 prior to the 3rd CPC to 1.67 post 5th CPC. As a consequence of the implementation of the recommendations of the percentage based system based on the 6th CPC Report the ratio of the maximum to minimum was reversed and now stands at 8.60.

c) Implementation of the 6th CPC recommendations resulted in a substantial increase in tire disability element. For 100 percent disability, at the minimum level, i.e., for ORs, it went up from Rs. 1,550 to Rs. 3,138, i.e., a little over double and at highest level amongst officers from Rs. 2,600 to Rs. 27,000, i.e., by 10.38 times.

d) Disability pension consists of two elements viz., service element and disability element. While the service element was linked with the qualifying service, disability element was not. Therefore, for the same level of disability, the service officer invalided out and one who served on and retired in due course, got the same quantum of disability element.

Annexure-'III'

10.2.50 To examine the recent trends in disability cases, the Commission sought data and further clarifications with regard to all cases of pensioners with disability element. The total number of pensioners superannuating with disability element, each year, from 2007-08 to 2013-14, as provided by the Controller General of Defence Accounts (CGDA) is tabulated below:

Financial Year	JCOs/ ORs	Commissioned Officers	Total	Total JCO/OR Retirees	Total Officer Retirees
2007-08	9,355	285	9,640	49396	2096
	(18.9)	(13.6)	(18.7)
2008-09	6,908	318	7,226	50913	2118
	(13.6)	(15.0)	(13.6)
2009-10	2,644	284	2,928	39133	1712
	(6.8)	(16.6)	(7.2)
2010-11	1,840	316	2,156	38209	1678
	(4.8)	(18.8)	(5.3)
2011-12	4,765	321	5086	48201	1626
	(9.9)	(19.7)	(10.2)
2012-13	5,837	327	6,164	53446	1643
	(10.9)	(19.9)	(11.2)
2013-14	4,037	318	4,355	55901	1606
	(7.2)	(19.8)	(7.6)

Annexure-IV

10.2.51:- The following trends are discernible:

a. As a percentage of the total officer retirees, the number of officers retiring with disability has increased in 2013-14, as compared to 2007-08 (13.6 percent to 19.8 percent).

b. The percentage of JCOs/ORs retiring with disability is, on the other hand, decreasing (18.9 percent to 7.2 percent).
c. The percentage of officers retiring with disability is considerably higher than JCO/ORs retiring with disability.

ANNEXURE-V

Government of India

Ministry of Defence

Department of Ex-Servicemen Welfare

D(Pension/Policy)

Subject: 1st Anomaly Committee Meeting to be held on 1/12/2016 under the Chairmanship of Secretary(P) on calculation of Disability Pension for Defence Forces personnel as per the recommendations of the 7th Central Pay Commission.

The undersigned is directed to refer to Department of Personnel & Training OM No. 11/2/2016-JCA(Pt) dated 15th November 2016 on the above subject.

2. Point-wise inputs for the agenda note on the issues raised by the representatives from the Defence Force Personnel raised in the meeting held on 11.11.2016 are as under:

(a) 7th Pay Commission has recommended slab based system for disability element of disability pension for Defence Forces Pensioners. However the 7th CPC has not made any recommendation for the civilians. The existing system of disability on percentage based system would therefore continue in civil side. This has led to an anomalous situation.

(b) A comparative statement indicating the percentage of retirees with disability during 5th CPC era when slab system was prevalent vis-a-vis retirees with disability during 6th CPC when percentage system was placed , is as under:

Ranks	Percentage of retirees with disability during 1996 to 2005(5th CPC)	Range of retirees with disability during 2006 to 2015(6th CPC)
Lt. Col/ Equivaqlent	2.04%-18.3%	7.5%-21.2%
Colonel/ Equivalent	1.56%-17.38%	3.3%-23.3%
Brigadier/ Equivalent	2.08%-17.42%	2.7%-21.6%
Major General/ Equivalent	0.0%-11.27%	0.0%-16.5%
Lt. General/ Equivalent	0.0%-21.88%	0.0%-15.4%

It could be seen from the data given by CGDA office that percentage of retirees for commissioned officers have increased in 6th CPC regime vis-a-vis 5th CPC.

(c) Pre 2016 retirees 
The comparison between slab and percentage system of disability element for pre- 1.1.2016 retiree pensioners have been made with reference to pay last drawn by migrating the same in 7th CPC pay structure and also by working out the disability element by linking the same with revised service pension under- 7th CPC. The statements indicating rank wise, qualifying service wise status in both the said scenario are attached as Annexure - B & C respectively. The statement indicates that all commissioned officers are at disadvantage in case the slab recommended by Seventh CPC is implemented. However in case of JCO/ORs, lower ranks are getting benefitted under slab rates.

Further the details of 1,09,988 JCO/OR retirees have also been analysed-on actual basis as data for these pensioners were readily available. It could be seen from the outcome tabulated as Annexure - D, that lower ranks of JCO/OR are getting benefitted especially Sepoy, Naik & Naib Subedar. Out of 1,09,988 records of JCO/OR processed, 85,640 (77.86/0) pensioners would get benefitted under slab rates. It is also intimated to the Ministry that pension for all pre-1.7.2014 retirees have been revised under OROP orders. It has been observed/ analysed that the pension of JCO/OR pensioners who are drawing pension on OROP rates (pre-2006 retirees and post- 2006 retirees who retiree upto 2009-10), are getting benefited under slab rates of disability pension.
Post 2016 retirees


For post-1.1.2016 retirees, no comparison has been made as notification relating to pay entitlements are not yet finalized. However, based on the recommendations of 7th CPC, it could be visualized that future progression in new pay structure percentage based system would definitely be beneficial for post-7th CPC retirees in all ranks.

(Manoj Sinha)

Under Secretary (Pen/Policy)

Shri D K Sengupta
Deputy Secretary
DoPT, North Block, New Delhi
MoD ID 3840/D(Pen/Pol)/2016 dated 22 November 2016
7th CPC grievances, disability Pension, 7th CPC, 7th Pay Commission Anomaly Committee, 7th Pay Commission ================ 7th pay commission, 7th pay commission latest news, autonomous bodies, Implementation of 7th CPC, 7CPC

Finance Ministry clarification on  the Applicability of recommendations of the 7th Pay Commission in respect of Autonomous/Statutory Bodies

Department of Expenditure issued a communication regarding Applicability of recommendations of the 7th Pay Commission in respect of Autonomous/Statutory Bodies

F. No. 1/1/2016-E.III (A) (eFTS-298581/2016)

Government of India
Ministry of Finance
Department of Expenditure

North Block, New Delhi

 Dated 17th November 2016

Subject: Applicability of the revised pay scales based on the recommendations of the 7th Central Pay Commission in respect of employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies set-up by and funded/controlled by the Central Government-regarding.

All the Financial Advisors of various Ministries/Departments under the Central Government are aware that the recommendations of the Central Pay Commissions are not directly applicable in case of employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies set-up by and funded/controlled by the Central Government. Therefore, once the recommendations of the Central Pay Commissions are accepted and implemented by the Central Government in respect of Central Government employees, separate orders are issued by the Ministry of Finance, Department of Expenditure, regarding extension of the orders applicable to the Central Government employees to the employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies set-up by and funded [controlled by the Central Government, based on the stipulations and conditions laid down therein. This was the practice adopted at the time of the 4th, 5th & 6th Pay Commissions. A reference is made to this Ministry's OM No. 7/23/2008~E-IIIA dated 30.9.2008 issued at the time of 6th Central Pay Commission.

2. No orders have so far been issued by the Ministry of Finance, Department of Expenditure in regard to applicability of the orders issued by the Government regarding revised pay scales based on the 7th Central Pay Commission in respect of the employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies set-up by and funded/controlled by the Central Government. The matter is under consideration. As and when a decision is taken regarding applicability of the revised pay scales based on the 7th Central Pay Commission, as accepted by the Government in respect of the Central Government employees, in case of such employees, appropriate orders will be issued for its applicability in respect of employees of Quasi-Government Organizations, Autonomous Organizations, Statutory Bodies set-up by and funded/controlled by the Central Government. Till such time, revised pay scales shall not be extended in respect of such employees.

3. This issues with the approval of Finance Secretary.

(Ashok Kumar)

Under Secretary to the Govt. of India

Brief of the 1st meeting of the National Anomaly Committee

Brief of the 1st meeting of the National Anomaly Committee

Sub: Brief of the 1st meeting of the National Anomaly Committee

The first meeting of the National Anomaly Committee was held today under the Chairmanship of Secretary(P), Government of India, to discuss the issue of calculation of Disability Pension for Defence Forces Personnel as per recommendations of the 7th CPC, which was attended by the Member Staff Railway Board and the Secretaries from other departments of the Government of India.

 AIRF was represented by the undersigned and Com. J.R. Bhosale, Treasurer AIRF while Army personnel were represented by the officials of all the three wings of the defence. At the outset, I urged upon the Secretary (DoP&T), to frame the definition of the "Anomaly", which has been already demanded by the Staff Side, NC/JCM.

This is in respect of report of the VII CPC, which has granted slab system on Disability Pension for the Defence Personnel, which was far short of the existing disability pension for the army officers. We explained the life of the army personnel and their cases of disability in the enemies’ action.

After threadbare discussions we urged upon the Official Side to see that there is no drop in the disability pension for any of the categories of the army personnel and paramilitary forces, rather they should be well compensated for their best they are giving for defending our motherland.

Source: AIRF

1st meeting of the National Anomaly Committee

1st meeting of the National Anomaly Committee

The 1st meeting of the National Anomaly Committee was held on 01.12.2016 on the anomaly of calculation of the disability pension for Defence Forces Personnel as per the recommendations of the 7th CPC. The representative of the Armed Forces made a presentation in the meeting demanding that the recommendations of the 7th CPC to grand disability pension on a slab system if implemented will lead to an anomaly between the civilian side and the Defence Forces Personnel because the civilian side will continue to be governed under a percentage based system. After studying the presentation, the Staff Side of NC-JCM has suggested that the slab system will be beneficial to the lower Rank personnel and hence both the slab system and percentage system may be accepted by the Govt. on an optional basis, alternatively the slab amount recommended by 7th CPC can be increased to avoid the anomalous situation. Secretary (P) informed that the issue would be further studied in consultation with CGDA.

Source: Confederation