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(3) If no pension is admissible, payment shall cease immediately the error is
detected and a report of the circumstances leading to the overpayment
shall be submitted to the competent authority.

(ii) Those not challenged in audit within 12 months from the date of payment
(including those where payments were made partly within 12 months and
partly at a date(s) or dates more than 12 months anterior to the date of
challenge):
(1) If a pension is payable, further payments shall be made at the correct
rate and a report of the circumstances leading to the overpayment shall
be submitted to the Central Government through Controller General of
Defence Accounts. Pending the orders of that authority, no recovery
of the overpayment shall be made.
(2) If no pension is payable, payment shall cease immediately the error is
detected and a report of the circumstances leading to the overpayment
shall be submitted to the Central Government through Controller
General of Defence Accounts.
(c) Action to be taken by the Central Government:
(I) On receipt of the reports specified in clause (b) above, the Central
Government shall decide, whether the whole or any portion of the
overpayment shall be recovered or written off, or in cases
involving fraud and misconduct, whether the pension shall be
withheld wholly or reduced, and if so, permanently or temporarily,
as the case may be, and communicate his decision to the Principal
Controller of Defence Accounts (Pensions). Any amount withheld
under this Regulation shall be adjusted against the overpayment to
the extent necessary.
(II) Overpayment made during the 12 months preceding the date of
challenge in audit, shall not be written off unless it is absolutely
impossible to effect recovery.

(d) Mode of recovery- If the competent authority decides that the overpayment
should be recovered, recovery shall normally be effected in instalments of one-third of
pension plus dearness relief unless otherwise specified in the orders. If no pension is

payable, the method of recovery shall be decided by the competent authority in

consultation with the Principal Controller of Defence Accounts (Pensions).

POWERS TO WRITE OFF OVER-PAYMENT OF PENSION AND TO WAIVE
AUDIT OBJECTIONS

96. (a) Overpayments of pension not due to an error in law (including a
misinterpretation of Regulations and orders) which are from any cause, irrecoverable may
be written off by the Principal Controller of Defence Accounts (Pensions) and his staff
Officers in each case as under: -

Pension Regulations for the Army, Part II (2008)

234