Dear Venkatesh,
What did you want to convey us? There was a suspected fraud by an employee but the company has no proof to say that this employee has done it. Therefore, when the company informs the employee of such fraud (means charge sheet the employee) the employee denies and defends and asks for proof (quite natural during the course of enquiry) then ........will he get his salary for that month? the duration of employment, is it that he has worked with the company for 2 years and 6 months...?
Now it is our turn to pick up the question and then to given an answer. If the above interpretation is correct, I would say that if the employee has not been suspended pending enquiry, he should be paid full salary for the month. If, on the other hand, finding that the employee has done some fraud he has been placed under suspension, then he should be paid 50% of salary as subsistence allowance. For deciding whether he should be paid full salary or just subsistence allowance service is not an issue. Even an employee who has served 30 or 40 years can also be suspended. At he same time, if this employee is an employee who has managerial powers and responsibilities then you can hold his salary and even the so called subsistence allowance need not be paid.