THE GAZETTE OF INDIA: EXTRAORDINARY

[PART PI—SEC. 41

SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

NOTIFICATION

New Delhi, the 17th July, 2002

Small Industries Development Bank of India (Payment of Gratuity to Employees) Regulations, 2002

HRDD No. 1995 (2)/STAFF-GEN (2).—Whereas it is necessary to frame regulations governing the

payment of gratuity to the employees of the Small Industries Development Bank of India and establishment of

Gratuity Fund, the Board hereby makes.the following regulations:—

ghofljiteind

1 - These Regulations may be called the Small Industries Development

csmmenfiemfint

B a n k o f l n d i a ( P a y m^ent^of^Gratuity^to^{Employees) Regulations, 2002.}

Power to Interpret

2. The power to interpret these Regulations vests in the Chairman

and

Managing

Director

(which

expression

shall

include

Whote-Time-Director and an Executive Director) and if there is no

Whole-Time-Chairman and Managing Director, the said expression

shall mean the Whole-Time-Director and includes an Executive

Director, who may authorise the issue of such administrative

instructions as may be necessary to give effect to these Regulations.

Definitions

3. In these Regulations, unless there is anything repugnant in the

subject or context -

(1) "the Act" means the Small Industries Development Bank of India

Act, 1989 (39 of 1989);

(2) "date of retirement" means -

(a) in the case of

employee who retires or is retired in

accordance with the terms and conditions of his service, the

date on which he so retires or is retired ;

(b) in the case of any other employee, the date from which he

ceases to be in the Small Industries Bank's sen/ice; and the

expression

"month

retirement"

shall

construed

accordingly;

(3) "Fund" means the Small Industries Development Bank of India

Employees¹ Gratuity Fund referred to in Regulation 10 ;

234,>^r-Gr[a2~--2

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART HI—SBC. 4]

(4) "Pay" means -

the "pay" admissible to an employee in the

grade held as on

the date of retirement and includes -

i) Substantive pay

ii) Officiating pay

iii) Special pay

iv) Personal pay

v) Special personal pay and

vl) any other emoluments classified as 'pay¹ by the Board;.

(5) "Dearness allowance" means the allowance.

(6) "Service in the Small Industries Bank" -

(a) includes the period of an employee's continuous temporary

service immediately preceding his confirmation;

(b) includes the period of service of an employee in the Reserve

Bank and/ or the Industrial Development Bank of India

immediately before the appointed day or, as the case may be,

before his posting on appointment, selection, promotion or

transfer to the Small Industries Bank in terms of sub-section(2)

of Section 33 of the Act;

leave duly authorised by a competent authority ;

(d) does not include any period during which an employee is

absent from duty without permission or overstays his leave,

unless specifically permitted by a competent authority ;

(7) "substantive pay" means the pay to which an employee is entitled

in the scale of pay applicable to the post held by him

substantively;

(8) "y^ear" means the year ending on the 31st March;

(9) Words and expressions used but not defined in these Regulations

and used in the Act have the meanings respectively assigned to

them for the purposes of the Act.

Conditions of grent

4. Subject to the terms, conditions and other provisions contained in

the succeeding Regulations, gratuity will be granted to a permanent

employee after termination of his service in the Small Industries Bank,

or in the event of his death before receipt of gratuity, to such person or

persons as may be determined in accordance with Regulation 8;

Provided that nothing in these Regulations shall be construed

as conferring any right or benefit on any employee whose service in

the Small Industries. Bank is governed by a contract expressly

stipulating his service to be for a specified period.

Wh9P not

5 (1) No gratuity will be granted to or in the case of, an employee if he

sdmissiblo

HMH twivf

n a s n o^j com^p|e^tec^{j service in the Small Industries Bank for a}

minimum period often years ;

(2) Notwithstanding anything contained in sub-regulation (1), gratuity

will be granted to or in the case of, an employee who has not

completed service in the Small Industries Bank for a minimum

period of ten years if -

i) he dies while in service of the Small Industries Bank; or

ii) he has retired or has been required to retire, either on account

of certified permanent incapacity due to bodily or mental

infirmity or owing to the abolition of his appointment on account

of reduction of establishment; or

iii) his service in the Small Industries bank is terminated by the-

Small Industries Bank for reasons other than reduction of

establishment.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART III—SEC. 41

Amount admisslbfe

6. (1) Without prejudice to the provisions of Regulation 5, the amount

of gratuity admissible to an employee shall be -

(a) a sum equal to one month's pay plus dearness allowance, for

. -each completed year of service in the Small Industries Bank [or

part thereof in excess of 6 months] subject to a maximum of

twenty months' pay plus dearness allowance or Rs.3,15,000/-

whichever is less for first twenty four years of service ;

(b) an additional sum equal to half month's pay plus-dearness

allowance, for each completed year of service in the Small

Industries Bank (or part thereof in excess of 6 months for '

service) in excess of twenty four years ;

(2)

Notwithstanding anything contained in sub-regulation 6(1), in

the case of an employee irrespective of the wages drawn by

him, the amount of gratuity admissible shall be determined at

the rate of 15 days' wages for each completed year of service

in the Small Industries Bank or part thereof in excess of 6

months subject to a maximum of Rs.3,50,000 and also subject

to other conditions as per the Payment of Gratuity Act, 1972, if

payment under this sub-regulation is more beneficial to the

employees.

Explanation

For the purpose of this sub-regulation, "wages' means pay plus

dearness allowance only

Payment of reduced

7(1) The Small Industries Bank may, while determining the amount of

amount—ID—certain

gratuity payable to an employee, take into account any financial

cases

loss caused to the Small Industries Bank by reason of the

inefficiency or misconduct of such employee, and grant a reduced

amount of gratuity;

Provided that the difference between the amount of gratuity

ordinarily admissible under the foregoing Regulations and the

amount of gratuity so reduced shall not exceed the amount of the

financial loss caused to the Small Industries Bank;

(2) Unless otherwise specifically permitted by the sanctioning

authority, where residential accommodation has been allotted or

provided by the Small Industries Bank or Industrial Development

Bank of India to an employee, no gratuity will be, or become,

payable to the employee or to any person claiming through or

under him, unless such employee or, as the case may be, the

person claiming through or under him, delivers or arranges to

deliver to the Small Industries Bank or the Industrial Development

Bank

India,

vacant

possession

the

residential

accommodation after fully satisfying the terms and conditions on

which such accommodation has been so allotted or provided ;

(3) Any amount due or recoverable from or in the case of an

employee, whether on account of arrears of rent or other amounts

payable to the Small Industries Bank in respect of residential

accommodation allotted or provided by it, or by way of

outstandings towards any loan or advance granted by the Small

Industries Bank or by reason of any overpayments made by, or of

any liability, loss or expense caused to the Small Industries Bank,

may be deducted from the amount of gratuity sanctioned to or in

the case of, the employee ;

(4) The provisions of this Regulation shall have effect notwithstanding

anything contained in the foregoing Regulations.

^&G))*>~^\

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART III—SHC. 4]

Payment in case of

8. In the event of the death of an employee before receipt of gratuity

P93t Qnn9

t n e a m o u n ^t O^f^{gratuity admissible shall}^be^paid^{: .}

(a) to the person who may have been nominated or deemed to have^l

been nominated by the employee in terms of Regulation 23 of the

Small Industries

Development

Bank of India Employees'

Provident Fund Regulations, and if there are more persons than

one so nominated or deemed to have been nominated, the

amount of gratuity shall be distributed among such persons in the,

same proportion in which the employee has distributed the

amount standing to his credit in the Provident Fund ; and •

(b) if no such nomination has been made or is subsisting, the amount

of gratuity may be paid to such persons who, in the opinion of the

Chairman

and

Managing

Director,

Whole-Time-Director,

Executive Director or the Chief General Manager, are the heirs of

the deceased or to any person on production of a probate or

letters of administration evidencing the grant to him of

administration of the estate of the deceased or a succession

certificate granted under the Indian Succession Act, 1925.

Liability for Tax

Income Tax and Super tax, if any, payable on the account of

gratuity granted to an employee will be borne by the Bank;

Provided that the Income tax and super tax, if any, payable on

the difference in the amount of gratuity admissible on account of

revision of ceiling under regulation 6(i) (a) above from the basis of 20

months' pay or Rs.2,25,000/- whichever is^less to 20 months' pay plus

dearness allowance or Rs.3,15,000/- whichever is less, shall be borne

by the employee himself in such manner as may be decided by the

Bank.

Constitution of

10. The Small Industries Bank shall have a fund to be called the Small

^ ^

Industries Development Bank of India Employees' Gratuity Fund, and

there shall be credited thereto-

(a) All moneys appropriated by the Small Industries Bank before

the date of commencement of these Regulations, for meeting the

liability on account of gratuities, including additional gratuities,

bayable to officers and other employees of the Small Industries

Bank;

(b) the amounts as and when received from the Development Bank

on account of its proportionate share of liability for gratuities in

respect of such employees who have become members of the

staff of Small Industries Bank by reason of sub-section (2) of

Section 33 of the Act;

under Regulation 13 increased to the nearest higher multiple of

Rupees One Lakh in the succeeding year;

(d) such amount as, in the opinion of the Small Industries Bank,

may be necessary having regard to-

i) the balance of the amount standing to the credit of the Fund;

ii) the number of officers and

other employees of the Small

Industries Bank;

iii) the accrued liability of the Small Industries Bank for payment of

gratuities, including additional gratuities; and

iv) any other relevant consideration.

Administration of

11. The fund shall be held by the Small Industries Bank and, subject^

ine rynq

j 0 ^e

provisions of these Regulations, shall belong to the Small

Industries Bank and be administered by the Board or a Committee of

the Directors authorised or set up by the Board for the purpose.

THE GAZETTE OF INDIA: EXTRAORDINARY

[PART PI—SEC, 4]

Interest

12. The Small Industries Bank shall credit to the Fund at the end of

every year an amount calculated on the balance in the fund at the end

of that year, at the rate at which interest was last credited to the

Industrial Development Bank of India Employees' Provident Fund or

the Small Industries Development Bank of India Employees' Provident

Fund, as may be applicable.

Disbursements from 13. The moneys in the Fund shall be utilised for making payments on

e ^ u n

account of gratuities payable by the Small Industries Bank under these

Regulations or any law for the time being in force.

Statement of

14. The accounts of the Fund shall be made up as at the end of each

ftCfiPMlUS

y e a r a n c l a n au(^jiteC^{j statement of the accounts shall be submitted to}

the Board or the Committee authorised or set up under Regulation 11,

not later than the end of December every year.

P. B. NIMBALKAR, Chairman and Managing Director

[ADVT. IU/IV/139/20Q2-Exty.]

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and Published by the Controller of Publications, Dolhi-110054.