Maharashtra Scraps No-Dues Certificates, Speeds Up Pension for Retiring Employees
Maharashtra Ends No-Dues Certificates for Faster Pensions

In a major administrative reform, the Maharashtra government has abolished the long-standing and cumbersome requirement for retiring state employees to obtain "no-dues" and "no departmental inquiry" certificates from all their previous offices. This decision promises significant relief for thousands of employees and aims to expedite the pension sanctioning process.

End of a Cumbersome Legacy Practice

The state finance department issued a crucial circular on Thursday under the Maharashtra Civil Services (Pension) Rules, 1982. The circular explicitly acknowledges that these additional certificate demands, which lacked any foundation in the official pension rules, were causing substantial delays. Consequently, complete retirement proposals were not being forwarded to the accountant general within the stipulated time, leading to late disbursement of pension benefits.

This delay often plunged retirees, who depend solely on their pension income, into unnecessary financial hardship. An official explained that Appendix 5 (Form 7) of the pension rules already mandates the current head of office to certify if any government dues are pending or if proceedings are ongoing against the employee. Despite this, offices routinely insisted on separate certificates from every past posting, a process that could drag on for months and stall pension cases indefinitely.

Key Provisions of the New Circular

The new directive brings clarity and enforces a streamlined system. Citing earlier reforms in final pay certificate procedures, the circular states, "Strict adherence to the revised system makes it unnecessary to separately call for no-departmental inquiry or no-dues certificates." It mandates that all required information should be deemed available within the current office or assumed under existing rules if not received within prescribed timelines.

For government accommodation, the circular introduces a pragmatic rule. If recovery details for outstanding licence fees are not received from the Public Works Department by a specified date, it will be presumed that no dues are pending for the eight months preceding retirement. Pension processing should not be delayed on this account. However, if a retired employee continues to occupy government quarters post-retirement, gratuity will be withheld as per existing orders.

Simplifying Advances and Recovery Verification

The government has provided further simplifications regarding various advances. It clarified that recoveries for house-building, vehicle, festival, computer, and travel advances are systematically recorded in service books and deducted from salary, making external verification from old offices redundant. Similarly, details concerning salary arrears, leave encashment, and income tax deductions are available with the current salary-drawing office, eliminating the need for confirmations from previous postings.

Strict Timelines for Departmental Inquiries

To prevent last-minute hurdles, the circular sets strict deadlines for reporting departmental or judicial proceedings. If an inquiry is initiated against an employee, the concerned office must inform the employee's current office within three months of its initiation. Crucially, if the employee is due to retire within six months, this information must be communicated within one week.

The circular carries a strong warning: "Failure to report pending proceedings within the stipulated period will lead to the presumption that no such action is pending." Furthermore, delays in pension proposals caused by non-reporting of inquiries within the prescribed time will invite disciplinary action against the responsible department or office head.

This comprehensive overhaul by the Maharashtra government is a welcome step toward bureaucratic efficiency and empathy. It directly addresses a chronic pain point for retiring public servants, ensuring they receive their rightful financial security without procedural agony, marking a shift towards a more employee-centric administration.