If you are an employee of a public sector undertaking and have the option to take VRS, go for it and grab it with both hands because chances are that you get more than you have ever imagined getting.

This is what happened when some state PSUs implemented VRS to reduce excess manpower and improve efficiency. They not only ended up paying emoluments that the employees were not entitled to but also threw the VRS open to employees who were not entitled to opt for it under rules. The Comptroller and Auditor General (CAG) has made these startling revelations in its report tabled in Vidhan Sabha recently.

The CAG has now taken strong exception to the excess payment of Rs 1.46 crore made to employees under VRS that the State government had introduced in 1993. It is worth mentioning that VRS was open to employees who had completed 10 years of service or had attained 40 years of age. The State government, however, had provided that the PSUs would implement VRS after seeking prior approval of the respective administrative departments.

According to provisions of the Voluntary retirement scheme, the employees were entitled to draw the amount lying in the Contributory Provident Fund (CPF) under the provisions of CPF rules, leave encashment as per the guidelines of the PSU rules, gratuity as per the provisions of the Gratuity Act, one or three months of pay in lieu of notice board of one or three months as the case may be. In addition, the employees were entitled to an ex-gratia amount in the nature of compensation calculated at one and a half months emoluments (pay and allowance) for each year of completed service or emoluments for remaining service at the time of taking the VRS, whichever is less.

It may be recalled that the emoluments in respect to the VRS optees were to include only pay and dearness allowance but were not to include the amount of interim relief. Also, the scheme was not available to daily fixed-wages employees, contract and work charge establishments as well as seasonal employees. The CAG observed that the PSUs paid excess amount by including the interim relief, special allowance and personal pay.

For example, the UPEC provided VRS benefits to employees who had not completed 10 years of service, which is a direct violation of VRS provisions. The 13 PSUs that implemented the VRS included the UP State Handloom Corporation, UP State Textile Corporation, UP Pashudhan Udyog Nigam, UP Panchayat Raj Vitt Evam Vikas Nigam, Indian Turpentine and Rasin Company Limited, The UP State Leather Development and Marketing Corporation Limited, UP State Mineral Development Corporation, UP Instruments Limited, UP State Sugar Corporation and the UP Agro Industries Corporation Limited. The CAG’s check of only seven PSUs brought some interesting facts. In its report, CAG had pointed that the UPIL paid an access amount of Rs 68.44 lakh to its 244 employees who opted for VRS whereas the UPSSCL paid an excess amount of Rs 52.84 lakh to its employees. The UPEC on the other hand paid an excess amount of Rs 6.62 lakh to there employees. 

Well, India mein Sab Chalta Hai! Why not this!!

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