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The Government of Maharashtra has issued a significant policy update mandating that dues related to government accommodation will be directly recovered from the pension benefits of retired employees if not cleared on time.

The Finance Department’s Government Resolution (GR), dated June 3, 2026, introduces stricter timelines, accountability mechanisms, and recovery provisions under the Maharashtra Civil Services (Pension) Rules, 1982, aligning them with the Central Civil Services (Pension) Rules, 2021.

Direct Recovery from Pension

A key provision of the GR states that if any dues—such as licence fees, damage charges, or utility bills—remain unpaid even after adjustment from gratuity, the remaining amount will be recovered directly from the pensioner’s Dearness Relief.

In such cases:

  • Recovery can be made without the pensioner’s consent
  • Dearness Relief payments may be stopped until full recovery is completed
  • Penal licence fees will apply for unauthorized occupation or overstay

This applies to cases involving:

  • Continued occupation beyond the permissible period
  • Unauthorized possession
  • Subletting or transfer to ineligible individuals

Timeline for No-Demand Certificate

The GR introduces a strict timeline for issuing the No-Demand Certificate, a critical document required for releasing retirement benefits.

  • The concerned Executive Engineer must issue the certificate within 14 days of application after the employee vacates the accommodation
  • This is aimed at reducing delays in settlement of retirement dues

Interest on Delayed Payments

If the No-Demand Certificate is not issued within the stipulated 14-day period:

  • The retired employee will be eligible for interest on the excess withheld gratuity
  • The interest rate will be linked to General Provident Fund (GPF) rates
  • The liability to pay interest will rest with the Executive Engineer

Gratuity Release Mechanism

The GR clarifies that:

  • Gratuity withheld due to pending dues must be released immediately after submission of the No-Demand Certificate
  • In cases where dues cannot be calculated in time, up to 10% of gratuity may be withheld temporarily

Once dues are determined and cleared, the balance amount must be released without delay.

Accountability of Officials

The responsibility for:

  • Calculating pending licence fees
  • Recovering dues
  • Issuing No-Demand Certificates

has been clearly fixed on the concerned Executive Engineer, ensuring administrative accountability.

Expanded Applicability

The revised rules will also apply, with suitable modifications, to:

  • Pensioners of aided educational institutions
  • Universities and affiliated colleges
  • Pensioners under Zilla Parishads governed by the Maharashtra Zilla Parishads Act, 1961

Background

Earlier provisions allowed recovery of dues from salary and gratuity, but lacked strict timelines and enforcement clarity. The updated GR introduces:

  • Defined timelines
  • Direct pension recovery mechanism
  • Financial accountability for delays

The resolution is part of ongoing efforts by the Maharashtra government to streamline the management of government accommodation and ensure timely recovery of dues after retirement.

Also Read: MAHARASHTRA GOVERNMENT WORKING TOWARDS CONNECTING KEY NODAL POINTS IN MUMBAI

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