Dear client, 

If it is found that the person appointed on the basis of forged certificate, his appointment is void . But after death of person, he cannot be penalised for any crime and hence compensated appointed should be granted but possible only after Court involvement. 

1) You mean to say on record Mr.X is still alive or the employment which got to X depends are not on behalf of X but someone else.

2) Than in this blunder management should held responsible one who has passed or sanction this death and further deceased legal  employment.

if the employment of the person is doubtful then department can deny the benifit of compensate employment it can terminate the service if the legal heir is already given employment.

See gratuity can be withheld pending the departmental enquiry and criminal case

If it is proved in the departmental enquiry that Mr X used forged and fabricated document in order to get is employment, then the dependent employment process cannot be initiated for the legal heirs of Mr X.

Employer cannot withhold gratuity amount even during the pendency of disciplinary action.

It has to be mandatorily released.

Section 4 (6) of the Act permits an employer to forfeit gratuity payable to an employee in the certain circumstances. As per the said provision:

The gratuity of an employee, whose services have been terminated for any act, willful omission or negligence causing any damage or loss to, or destruction of, property belonging to the employer' shall be forfeited to the extent of the damage or loss so caused

The gratuity payable to an employee may be wholly or partially forfeited (i) if the services of such employee have been terminated for his riotous or disorderly conduct or any other act of violence on his part, or (ii) if the services of such employee have been terminated for any act which constitutes an offence involving moral turpitude, provided that such offence is committed by him in the course of his employment.

you need to abide with directions of the court. Gratuity of the forged person can be put on hold.

Dependents would not be entitled to compassionate  appointment 

since Mr X had obtained employment by fraudulent means dependent employment offered would be withdrawn 

Govt cannot withhold your father, gratuity merely because criminal case is pending

If the proposal for employment on compassionate grounds was forged or any fraud played upon then it may be cancelled and if there is a evidence to prove the same, a criminal complaint may be lodged against the person who was responsible for the commission of  this offence.

Death cum retirement gratuity due to the deceased employee can be paid to the nominee provided the nominee's name has not been manipulated or fraud played upon.