Dear friend,
There is no mention in the post whether the employee went missing while on his duty or otherwise.
In the first place, in my poinion, the lapse of two years since missing, the conclusion of the employer as revealed by the poster himself that this is a case of missing and not abscondence and the issue of non-traceability certificate by the Police upon a complaint lodged by the missing employee's family would indicate that there is no scope for any action by the employer under the CCS(CCA)Rules.
Secondly, as far as I am aware of, there is no special Law in India like the Presumption of Death Act,2013 as in the United Kingdom.
Therefore, if at all any remedy is available, it is only through the provisions of Sec.108 of the Indian Evidence Act,1872. But it is time consuming and has certain limitations on probate purposes.
While disposing of a writ petition filed by the legal heirs of a missing bus conductor employed in the State Transport Corporation, a Division Bench of the hon'ble High Court of Madras has held that a person missing for long and not heard of for over seven years could be presumed to have died u/s 108 of the Indian Evidence Act,1872 only on the day after completion of seven years. The Court further observed that there is an inherent danger in presuming that the date from which a person went missing could be taken to be the date of death for the reason that many claims which could be made by his legal heirs would become barred by time despite the fact that the very presumption of death could be raised only after 7 years from date on which he was last heard of. In this connection the Court cited Rule 49-A of the TamilNadu Pension Rules,1972 which provides for the settlement of terminal benefits to legal heirs of missing Govt. employees on receipt of " Not-traceable" certificate from Police subject to submission of an indemnity bond that the payment made could be adjusted from dues payable to the Govt.servant if he appeared later and made any claim. The Court also observed that the logic behind such a Rule is of universal application.
The poster's establishment may consider this and take action to settle the terminal benefits, if any accordingly.