Non payment of leave encashment

1.  Earned leave is compulsory encashable at the time of separation, resignation, retirement or termination as mandated by every State Shops and establishment Act.

2.  Leave encashment is considered part of wages and non payment can be treated as illegal deduction under payment of wages act.

3.  Write a letter to HR and demand written explanation if not amenable send a legal notice through prudent lawyer and recover the money through civil court.

It is not compulsory to avail of encashment of leave at the time of separation/resignation/retirement, unless specified in the employment contract, company policy, or applicable state laws under the Shops & Establishment Act.

An earned leave can be encashed under the Shops and Establishments Act, but the specific rules and regulations vary by state. 

Most states' Shops and Establishments Acts allow for the encashment of earned leave, often when an employee leaves the company, but some allow for encashment during employment as well, subject to certain conditions. 

The specific provisions regarding the number of days that can be encashed, the rate of payment, and other conditions are governed by the respective state's Shops and Establishments Act and the employer's internal policies. 

Your employer  is a private or public company ?

Whether CCS Rules or what type of rules govern the subject matter ?

It is better to consult and engage a local prudent lawyer practicing service matters for proper appreciation of facts, professional advise and necessary proceeding.

Any suggestion depnds upon the provisions under which the firm is registered.