ABSTRACT

Tamil Nadu Khadi and Village Industries Board – Sanction of

Rs.36.86 crore - towards Payment of terminal benefits to the
employees retired between 1.10.2008 and 31.3.2012 –
Orders issued.

Handlooms, Handicrafts, Textiles and Khadi (F2) Department

G.O.(Ms).No.53 Dated: 20.03.2013

Nandana Panguni 7
Thiruvalluvar Aandu 2044

Read:

1. From the Chief Executive Officer, Tamil Nadu

Khadi and Village Industries Board, Letter
No.2035/B1/2009, dated 11.10.2011.

2. From the Chief Executive Officer, Tamil Nadu

Khadi and Village Industries Board,
Letter No.2035/B1/2009, dated 7.02.2012
and 14.5.2012.
-----

ORDER

In the letter first read above, the Chief Executive

Officer, Tamil Nadu Khadi and Village Industries Board has
stated that Pensionary benefits of the staff already retired
from Board’s service from 1.10.2008 to 31.12.2009
amounting to Rs.1959.63 lakh, and the Pensionary benefits
amounting to Rs.1458.95 lakh have not been paid to the
pensioners who retired from 1.1.2010 to 31.8.2011. A sum
of Rs.267.77 lakh is approximately required for settlement of
Pensionary benefits to those who were retired from Board’s
service during the period from 1.9.2011 to 31.3.2012.
Totally, a sum of Rs.3686.35 lakh is required for settlement
of Pensionary benefits.
 2. In the letters second read above, the Chief Executive
Officer, Tamil Nadu Khadi and Village Industries Board has
also stated that some of the pensioners have moved the
Honourable Court to settle their retirement benefits and
some pensioners have also obtained Court orders to settle
their retirement benefits within a specific period of time.
But the Board is unable to settle the Pensionary benefits to
retired staff due to lack of funds. In fact, the Board has a
cumulative liability of over 200 crore. Therefore, it will not
be possible to raise sufficient resources to meet this liability.
The Chief Executive Officer, Tamil Nadu Khadi and Village
Industries Board has therefore requested that as a first step,
Rs.36.86 crore may be sanctioned as grant for the purpose of
pensionary benefits to employees those who were retired
from 01.10.2008 to 31.03.2012 early.

3. In the meanwhile, the Hon’ble Minister for Khadi has

announced the following announcement on the floor of
Assembly on 2.5.2012.

“1.10.2008
1.10.2008 Kjš 31.3.2012 Koa gâòçªJ XŒÎ bg‰WŸs jäœehL fj®
»uhk¤ bjhêš thça¥ gâahs®fë‹ Áuk§fis fU¤Âš bfh©L
kh©òäF jäHf Kjyik¢r® mt®fë‹ Miz¡»z§f ãYit
XŒñÂa¥ ga‹fŸ tH§f %.36.86 nfho murhš mDk¡f¥gL«.”
mDk¡f¥gL«.

4. The Government, after careful examination, accept

the proposal of the Chief Executive Officer, Tamil Nadu Khadi
and Village Industries Board and sanction a sum of Rs.36.86
crore (Rupees Thirty six crore and eighty six lakh only) as
loan to Tamil Nadu Khadi and Village Industries Board to
enable payment of terminal benefits to the employees retired
between 1.10.2008 and 31.3.2012.

5. The expenditure sanctioned in para 4 above shall be

debited to the following new detailed head of account.

“6851-00 Loan to Khadi and Village Industries

Board
105 Khadi and Village Industries
I Non Plan
 AA Loan to Statutory Corporation Boards
and Government Companies
controlled by the Secretary to
Government, Industries.
02 Loans to Khadi and Village Industries
Board
DPC 6851-00 105 AA 02 – (Out go)
DPC 6851-00 105 AA 02 – (Receipts)”

6. The interest accrued for the Loan sanctioned in para

4 above shall be credited to the following head of account.

“ 0049 Interest Receipts – 04. Interest Receipts of State/

Union Territory Governments – 190. Interest from Public
Sector and other Undertakings – BM Loans to Tamil Nadu
Khadi and Village Industries Board.” (DPC 0049 04 19 BM
0007)

7. The Commissioner of Treasuries and Accounts,

Chennai shall draw and credit the amount sanctioned in para
4 above to the Personal Deposit Account of the Board held
with the Government under the following head of account.

“K Deposits and Advances (b) Deposits not bearing

interest 8443 00 Civil Deposits 800 Other Deposits BR
Deposits of Tamil Nadu Khadi and Village Industries Board
(TNKVIB).”
(DPC 8443 00 800 BR 00 0C)(Receipts)

The amount shall not be paid in cash but contra credited to

the above head of Account by means of Cheque/ Demand
Draft drawn in favour of Personal Deposit Account of Tamil
Nadu Khadi and Village Industries Board NBI.A/c
No.6184513750.

8. The Secretary, Handlooms, Handicrafts, Textiles and

Khadi Department is the estimating, reconciling and
controlling authority of the above new detailed head of
account.
 9. The Pay and Accounts Officer(South), Chennai is
requested to open the above new detailed head of account in
their accounts.

10. The expenditure sanctioned in para 4 above shall

be constituted an item of “New Instrument of Service” and
the approval of the Legislature will be obtained in due
course. Pending approval of the Legislature the expenditure
will be initially met by drawl of an advance from the
contingency fund. Orders for sanction of advance from the
contingency fund will be issued by the Finance (BGI)
Department. The Handlooms, Handicrafts, Textiles and
Khadi Department is directed to send application in the
prescribed format along with the copy of this order to
Finance (BGI) Department for sanctioning of an advance for
required quantum. The Chief Executive Officer, Tamil Nadu
Khadi and Village Industries Board is directed to send
necessary explanatory notes for inclusion of the above
expenditure in the Supplementary Estimates 2012-2013 to
Government in Finance (BGI) Department without fail.

11. The Chief Executive Officer, Tamil Nadu Khadi and

Village Industries Board is informed that the loan sanctioned
in para 4 above shall be utilized only for the settlement of
pensionary benefits as stated in para 1 above and not for any
other purpose.

12. This order issues with the concurrence of Finance

Department vide its U.O.No.12242/Finance
(Industries)/2013, dated 20.03.2013.

(By Order of the Governor)

G.Santhanam
Secretary to
Government

To
The Chief Executive Officer,
Tamil Nadu Khadi and Village Industries Board,
Kuralagam, Chennai-108.
The Accountant General (A&E), Chennai-18.
The Accountant General (A&E),
Chennai-18. (By Name)
The Accountant General (Audit-1), Chennai-18.
The Accountant General (Audit-1),
Chennai-18. (By Name)
The Accountant General (CAS), Chennai-9.
The Residential Audit Officer, Secretariat, Chennai-9.
The Pay and Accounts Officer (North), Chennai-1
The Pay and Accounts Officer (South), Chennai-35.
The Commissioner of Treasuries and Accounts,
Panagal Buildings, Chennai-15.
The Chief Internal Auditor and Chief Auditor of
Statutory Boards, Chennai-2.
Copy to:
The Hon’ble Chief Minister’s Office, Chennai-9.
Finance (Industries/W&M/BG-I/L&A Cell/BG-II)
Department,Chennai-9.
The Special Personal Assistant to Minister
(Khadi and Village Industries), Chennai-9.
Stock File/ Spare Copy

/Forwarded By Order/

Section Officer