Interpratation of F.R. 28
No.F.2(47 )-E.III/60
Government of India
Ministry of Finance
(Department of Expenditure)
New Delhi-2, the 16th August, I960.
OFFICS MEMORANDUM
Subjects- Interpratation of F.R. 28.
The undersigned is directed to refer to Fundamental Rule 28 and to say that a question has been raised whether a competent authority ordering the transfer of a Government servant from a higher to a lower grade or post as a penalty can fix the pay of the Government servant concerned in the lower post even at a rate higher than that he would have drawn in the lower post in the normal course by the operation of F.R. 22 read with clause (b) or (c) of F.R. 26.
2.The question has been carefully considered by the Government of India and it is clarified that it is not the intention that under F.R.28 a Government servant can draw, in the lower post, pay higher than that to which he may be entitled in the lower post by the application of Fundamental Rule 22 read with clause (b) or (c) of Fundamental Rule 26. In order to make the position clear F.R. 28 is being amended as in the advance copy of the notification enclosed.
3.Once the pay is fixed in the lower post in the manner indicated above, the regulation of increments in the lower post will be made under the normal rules unless the increment in the lower post also is withheld.
4.Under sub-rule(2)of F.R.29, if a Government servant is reduced as a measure of penalty to a lower grade or post, the authority ordering the reduction may or may not specify the period for which the reduction shall be effective, but where the period is specified, that authority shall also state whether, on restoration, the period of reduction shall operate to postpone future increments, and if so, to what extent. Where the period of reduction is specified in the order of penalty the Government servant concerned shall be automatically restored to his old post after the expiry of the specified period
5.The question as to what should be the pay of a Government servant on restoration to the higher post grade, in cases where the period of reduction is specified, shall be decided as follows:-
(i) if the order of reduction lays down that the period shall not operate to postpone future increments, the Government servant shall be allowed the pay which he would have drawn in the normal course but for his reduction to the lower post. If the pay drawn by him immediately before reduction was below the efficiency bar, he shall not be allowed to cross the bar except in accordance with the provisions of F.R.251
(ii) if the order lays down that the period of reduction shall operate to postpone his future increments, for any specified period which shall not exceed the period of reduction to the lower post/grade, the pay of the Government servant on restoration shall be fixed in accordance with (i) above but after treating the period for which increments are to be postponed as not counting for increments.
6.In cases where the reduction to the lower post grade is for an unspecified period, if and when the Government servant is reappointed to the higher post in the normal course the pay in the higher post will be regulated only in accordance with the normal relating to pay fixation.
Sd/-
( V . Doraiswamy )
Deputy Secretary to the Govt. of India.
Source: http://finmin.nic.in/the_ministry/dept_expenditure/notification/payfixation/16-08-1960.pdf