CAG says 20 PSUs paid Rs 414 cr in irregular leave encashment

NEW DELHI: Deviating from norms, about 20 central PSUs, including BHEL, NMDC and Hindustan Petroleum, made irregular payments of about Rs 414 crore to employees towards leave encashment, the CAG said today.

"Encashment of half-pay leave/sick leave in deviation from Department of Public Enterprises guidelines resulted in irregular payment of Rs 413.98 crore from January 2007 to November 2012," the Comptroller and Auditor General (CAG) of India said in a report tabled in Parliament.

With effect from January 1, 2006, the government allowed encashment of half-pay leave and earned leave on superannuation, subject to a combined limit of 300 days.

The auditor observed that about 17 central public sector enterprises made irregular payments of Rs 391.31 crore to their employees towards half-pay leave encashment on superannuation over and above the ceiling of 300 days.

These PSUs include Neyveli Lignite Corporation, BHEL, Hindustan Petroleum and Power Finance Corporation.

Further, the CAG observed that PSUs such as Bharat Electronics Ltd and Cochin Shipyard made irregular payments of Rs 22.67 crore to their employees towards sick leave.

The government does not allow encashment of unused sick leave.