Yes, this is because even if he is found guilty under the Criminal Act or Civil Act, it does not mean that he is guilty under the Employment/Service Conditions Act. Hence, suspend him immediately and issue him a charge sheet. Conduct a departmental enquiry/domestic enquiry based on the principle of natural justice. If the charges of misappropriation are proven, dismiss him from service. Once he is dismissed as per the Employment Conditions Act (that is under the Industrial Employment Standing Orders Act or as per your service rules), his gratuity can then be forfeited.