GOVERNMENT OF ANDHRA PRADESH
FINANCE (PENSION-I) DEPARTMENT
Circular Memo No.16077/135/A.2/Pen.I/2004 Dt:-20-02-2006.
Pensions-Settlement of pensionary benefits in time-Avoiding payment of penal interest in case of delay- Rate of interest - Instructions-Regarding.
G.O. Ms No. 268 Finance & Planning (FW-Pen. I) Department dated 07-10-1986.
Circular Memo No. 37989/A/494/A.2/ Pen.I/98 dated 21-04-1999 of Finance & Planning (FW-Pen. I) Department.
Circular Memo No. 16077/135/A.2/ Pen.I/ 2004 dated 11-08-2005 of Finance (Pen. I) Department.
Based on the instructions of Government of India, orders were issued in the reference 1 st cited that interest may be allowed on delayed payments of Retirement Gratuity in cases of administrative delay, at the rate of 7% per annum for the period beyond 3 months and upto one year and beyond one year, 10% per annum, after the gratuity becomes due and payable till the end of the month preceding the month in which the payment is actually made.
2. Further instructions were issued in the reference 2 nd cited, stipulating certain conditions for payment of interest on delayed payment of gratuity. The conditions are as follows:-
i) should be sanctioned by the administrative Department concerned with the concurrence of Finance Department.
ii) where disciplinary or judicial proceedings are pending interest is payable from the date of conclusion of the proceedings.
iii) the delay should be on account of administrative lapse or for reasons beyond the control of the Government servant concerned.
3. It has come to the notice of the Government that most of the banks have reduced their interest rates given to the public in the recent past and Nationalised Banks are paying interest on Fixed Deposits at 4.5% for 3 months and 5% upto one year.
4. Thus, keeping this in view and in supersession of the orders issued in the reference 3 rd cited, an amendment is issued to para 10 of the orders issued in the reference 2 nd cited.
A M E N D M E N T
10. Further interest shall be allowed on delayed payment of retirement Gratuity. The rate of interest is 7% p.a for the period beyond 3 months and upto 1 year and 10% p.a beyond 1 year after the gratuity becomes due and payable till the end of the month proceeding the month in which the payment is actually made. The interest is allowed on the following conditions:
10. Further interest shall be allowed on delayed payment of retirement Gratuity. The rate of interest is 4.5% p.a for the period beyond 3 months and upto 1 year and 5% p.a beyond 1 year after the gratuity becomes due and payable till the end of the month preceeding the month in which the payment is actually made. This interest is allowed on the following conditions:
5. The memo is available on Internet and can be accessed at the address http://www.aponline.gov.in .
RANJEEV R ACHARYA
SECRETARY TO GOVERNMENT (FP)
The Principal Accountant General, A.P. Hyderabad.(with a covering letter)
The Accountant General (A&E) A.P. Hyderabad.
The Accountant General (Audit. I) A.P. Hyderabad.
The Accountant General (Audit.II) A.P. Hyderabad.
The Director of Treasuries & Accounts, A.P. Hyderabad.
The Director of State Audit, A.P. Hyderabad.
The Director of Works and Projects, Hyderabad.
The Pay and Accounts Officer, Hyderabad.
The Joint Director, Pension Payment Office, M.J Road, Hyderabad- 500 001.
All the Departments of Secretariat.
The Secretary to Governor, Raj Bhavan, Hyderabad.(with a covering letter)
All the Heads of Departments.
The Registrar General, High Court of Andhra Pradesh, Hyderabad (with a covering letter)
The Registrar, A.P. Administrative Tribunal, Hyderabad.(with a covering letter)
The Registrar, A.P. Lokayukta and Upa Lokayukta, Hyderabad.(with a covering letter)
The Secretary, Andhra Pradesh Public Service Commission, Hyderabad. (with a covering letter)
The Secretary, A.P. GENCO, Vidyut Soudha, Hyderabad.(with a covering letter)
The Secretary, A.P.TRANSCO, Vidyut Soudha, Hyderabad.(with a covering letter)
The Commissioners of Municipal Corporation, Hyderabad, Vijayawada, Visakhapatnam, Warangal, Kurnool,
Rajahmundry, Guntur, Nellore, Kakinada, Eluru, Nizamabad, Karimnagar and Kadapa.
The Registrar, Osmania University /Andhra University / Sri Venkateswara University /
Kakatiya University / Nagarjuna University / Acarya N.G. Ranga Agricultural
University/ Jawaharlal Nehru Technological University/ Sri Krishna Deva Raya
University/ Dr. B.R. Ambedkar Open University, Hyderabad/Sri Padmavathi Mahila
Viswavidyalayam/Sri Pottisriramulua Telugu University/Dravidian University, Kuppam
and NTR University of Health Sciences, Vijayawada.
The Chairman, Tribunal for Disciplinary Proceedings, Hyderabad.
The Vice Chairman & Managing Director, A.P. Housing Board, Hyderabad.
All the Collectors.
All the District Judges.
All the District Treasury Officers.
All the District Development Officers of Zilla Praja Parishads.
All the District Panchayat Officers.
All the District Educational Officers.
The Joint Director (Works & Accounts) N.S. Project, Secretariat Buildings, Hyderabad.
The Secretary Tungabhadra Project, Via. Hospet, Ballary District.
The Joint Director (Works & Accounts) N.S. Right Canals, Vijayapuri North, Nalgonda District.
The Joint Director (Works & Accounts) N.S. Left Canals, Tekulapally, Khammam District.
The Joint Director (Works & Accounts) G.B. Project, Dowlaiswaram, E.G. District.
The Joint Director (Works & Accounts), Sriramsagar Project, Nizamabad District.
The P.A.O., T.P.H.L.C., Stage-I, Anantapur.
The Assistant P.A.O., Vamsadhara Project, Srikakulam District.
The Director of State Ports, Kakinada, East Godavari, A.P.,
All the Secretaries of Market Committees through Director of Marketing (30 copies).
All the Commissioners/ Special Officers of Municipalities through the Commissioner of Municipalities (100 copies).
The Commissioner, Dr. M.C.R. H.R.D Institute of A.P. (Institute of Administration), Jubilee Hills, Hyderabad.
The Resident Commissioner, Andhra Pradesh Bhavan, Ashoka Road, New Delhi-110 001.
The Pay & Accounts Officer, Government of Andhra Pradesh, New Delhi-110 001
Copy to SF/SCS.
This Memo is available on the Internet at www.aponline.gov.in .