Gratuity For Terminated Employee

Dear Seniors,
We have decided to terminate an employee because he was working as a freelancer to our existing client from our office while being an employee of our organization, he has breached his duties and responsibilities mentioned in the appointment letter.
He is an old employee working with us for more then 7 years. I would like to know if he is eligible for Gratuity.
Kindly advice.
Regards,
Glenn

Forfeiting gratuity is not a easy thing. It is very difficult to prove before controlling authority of gratuity rather pay him gratuity / settle the case outside labour authorities....