The Comptroller and Auditor General has criticised the state government for extending leave encashment benefit to the tune of Rs 40.52 lakh to serving all India service officials in violation of All India Service (conditions and service-residuary matters) Rules.

In its latest audit report for 2007-2008, the CAG has pointed out that 78 IAS, one IFS and 61 IPS officials had encashed leave while in service. In all, 140 officials encashed leave 172 times violating their service rules between February, 2005 and July 2007. The state government had applied the State Civil Services, Class I rules to extend leave encashment facility to serving all India service officials also.

But the CAG, quoting a January 2005 government of India letter sent to all state chief secretaries, has pointed out that even when all India service officials are posted in states, their service conditions are governed by the all India service rules and not by the state service rules.

As per the all India service rules, officials are entitled to leave encashment only on superannuation or in the case of death. The only exception permitted for all India service officials is encashment of earned leave for 10 days while availing leave travel concession. However, it should not exceed 60 days in their entire service.

The report further said, "As the payment of encashment of leave to all India service members goes against the provisions," the money should be recovered from the officers concerned.

Reacting to the issue, Tamil Nadu chief secretary K S Sripathi told TOI, "The leave encashment facility was earlier given to all India service officials also. It was withdrawn and re-introduced by the government of India many times. We have taken up the matter with the CAG office here. If the money has to be recovered from the officials, it will be done."