Karnataka High Court Orders Full Pension and Gratuity for Retired Officer who was chargesheeted for taking Bribe

The Karnataka High Court has ruled in favor of a 73-year-old retired government officer, Hanumanth N Karkun, who was denied his pension and gratuity for over a decade. The court set aside an order that withheld 100% of his retirement benefits and directed the authorities to release the full amount within four weeks.
Background of the Case
Hanumanth N Karkun, a former Superintendent in the Central Excise, Customs, and Service Tax department, was accused of demanding a bribe of ₹2,000 for issuing a service tax registration certificate in 2011. A complaint was filed by a man named Rohith B. Deshpande, leading to an investigation by the Central Bureau of Investigation (CBI).
Following the investigation, a chargesheet was filed against Karkun. Meanwhile, he retired on January 31, 2012, upon reaching the age of superannuation. Despite his retirement, the Disciplinary Authority initiated a departmental inquiry against him based on the same allegations from the criminal case. Eventually, on February 6, 2023, the authority imposed a penalty, withholding 100% of his pension and gratuity.
Court’s Observations and Verdict
Justice M. Nagaprasanna, who presided over the case, ruled that the penalty imposed was legally unjustified. He noted that the criminal trial court had already acquitted Karkun of all charges due to a lack of evidence. The court emphasized that the acquittal was not merely on a “benefit of doubt” basis but on clear grounds that the prosecution had failed to prove any wrongdoing.
The High Court highlighted that the evidence and documents presented in both the criminal trial and the departmental inquiry were identical. Since Karkun was cleared in the criminal trial, the same charges could not be used to impose a penalty in the departmental proceedings.
“The documents and witnesses in both proceedings are the same. If the criminal court has acquitted the petitioner, it should automatically lead to canceling the penalty imposed by the disciplinary authority,” the court stated.
Violation of Pension Rules
The court also pointed out that under the CCS (Pension) Rules, 1972, the maximum penalty allowed is a 50% reduction in pension for a limited period or permanently. There is no legal provision to withhold 100% of both pension and gratuity.
“The petitioner retired 13 years ago and has not received his rightful benefits. Withholding his full pension and gratuity has no legal sanction,” the court ruled.
Final Decision
Rejecting the government’s argument that Karkun should file an appeal with the Appellate Authority, the court emphasized that he had already suffered enough.
“The petitioner is now 73 years old and suffering from cancer. Despite retiring 13 years ago, he has not received his terminal benefits. The imposed penalty is harsher than dismissal itself. The ‘cup of sorrow’ has overflowed, and justice cannot be delayed further,” the bench stated.
As a result, the Karnataka High Court directed the authorities to release the full pension and gratuity within four weeks, ensuring that Karkun finally receives his rightful benefits.