Recovery period of commutation amount.

20 Apr

Recovery period of commutation amount.

Actually when the period of 15yrs was fixed, It was based on the then prevailing rate of interest @ 12%. The rate of interest has been declining since 2006, which in 2010 was 8%, & presently hovering around 7%. On calculation the entire amount of commutation @8% stands recovered in 10 years & 8 months. If the recovery is allowed to continue, the Govt.will be found to be enriching itself, the value of the same will come to 18.3%. Therefore, in CWP 2490/2024 filed in Hon’ble High Court Punjab& Chandigarh. judgement passed on 09/02/2024 staying future recovery.The petition No. 8222/2024 came up for hearing on 15/04/2024 & passed orders staying future recovery.