Subject to the condition that no deduction may be made which reduces the credit by more than the amount of any contribution by the Authority with interest thereon credited under rules 18 and 20, before the amount standing to the credit of the subscriber in the Fund is paid out of the Fund, (A) the Chairperson may direct the deduction therefrom and payment to the Authority of,-
(i) all amounts representing such contribution and interest, if the subscriber is dismissed from service due to misconduct, insolvency or inefficiency :
Provided that where the Chairperson is satisfied that such deduction would cause exceptional hardship to the subscriber, he may, by order, exempt from such deduction an amount not exceeding two-third of the amount of such contribution and interest which would have been payable to the subscriber, if he had retired on medical grounds:
Provided further that if any such order of dismissal is subsequently cancelled, the amount so deduced shall, on his reinstatement in the service be replaced to his credit in the Fund.
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(ii) all amounts representing such contribution and interest, if the subscriber within five years of the commencement of his service as such or who has been appointed on contract for a fixed term or under a statute for a fixed term, within one year of the commencement of his service as such, resigns from the service or ceases to be an employee under Authority or otherwise than by reason of death, superannuation, or a declaration by a competent medical authority that he is unfit for further service, or the abolition of the post or the reduction of establishment.
(B). the Chairperson may direct the deduction therefrom and payment to the Authority of any amount due under a liability incurred by a subscriber to the Authority.