PDA

View Full Version : Interest on LTC cancellation - reg



jaiaawjisiddha
23-05-2011, 03:03 PM
I had drawn a LTC advance of Rs. X for travelling to hometown. The advance was drawn on 4 March, 2011 (since rail tkts can be booked 90 days in advance) and the date of journey was 20 May, 2011. However, due to education related problem of my children studying in Board class, I had to cancel the journey. Accordingly, the tickets were cancelled 2 days before the date of journey i.e. on 18 May, 2011. Since IRCTC takes about 2 days to refund the cancellation amount against Etickets, I received the refund on 20 May, 2011. I returned the full advance amount on the first working day following receipt of the refund (Saturday & Sunday is holiday in my institute). *However, my institute has charged me interest on the amount, saying that I held the amount with me. Ideally speaking, I was holding the (refund) amount only for 2 days i.e. 21 & 21 May. The amount was actually with Railways before the cancellation. My question is :-

1) Can interest be charged in such a case ?
2) If yes, for what period ?

RKPATHAK
24-05-2011, 09:43 AM
In case the money not remained with you you have to pay penal interest for two days only,

jaiaawjisiddha
24-05-2011, 09:48 AM
Dear Mr. Pathak,

Thank you very much for a very quick response. Can U pls direct me to the OM to substantiate!

Regards,
Sunil

jaiaawjisiddha
24-05-2011, 09:48 AM
Dear Mr. Pathak,

Thank you very much for a very quick response. Can U pls direct me to the OM to substantiate!

Regards,
Sunil

RKPATHAK
24-05-2011, 09:49 AM
You consult GFR chapter penal interest

jaiaawjisiddha
24-05-2011, 10:00 AM
Thanx again. I tried to find the relevant details, but could not find. Shall be obliged if you could let me have the link to the relevant GFR.

jaiaawjisiddha
24-05-2011, 05:14 PM
Dear Sir,

I cud not find the relevant GFR. I shall be obliged for your sending me a link to the same.

With Kind Regards,
Sunil