Can Salary Of An PSU Employee Be On Hold For A Month Under Any Rule?

After the resignation (during notice period), when an employee is regularly doing his assigned job, monthly salary and other allowances has been kept on hold for an PSU employee. Under which Government/Company rule it is possible? Who is authorized to hold the salary of an employee?

Under normal circumstances it is not possible to hold salary of any employee without reason and without informing the employee of the intention of the employer to hold the salary. However, in the case of full and final settlement it is permitted if provided in the Standing Orders of the establishment and if the person being relieved or going to be relieved has been in charge of any highly responsible position involving cash and other confidential dealings. It is always required to be clarified from the department itself.
Regards,
Madhu.T.K

I agree with Mr. Madhu's opinion.
Such irregularities are unheard of in PSUs.
However, in case of resignation, depending on the date of cessation of service or other circumstances; the last month's salary may be with-held and paid alongwith the Final Payments; as the attendance data is not sent to Payroll (as salary and salary slip is not prepared) but to the Final Settlement section.
Warm regards.