What is Advance Non-Compoundable Increment? Kerala Government gives right direction

The Karnataka Government recently issued an order about the withdrawal of grant of non-compoundable increment granted to those PhD holders from 2007 onwards. The order is as follows:

According to the above order, it appears that the Government has interpreted the 2007 PhD increment order as wrong. According to recent interpretation of Government, the two increments which were sanctioned for acquiring  PhD  from 2002 to 2008 are required to be converted into non-compoundable, they are required to be changed into 420+420, instead of 3+3 = 6 per cent, which was already sanctioned to them.
The following aspects are important:

1. Karnataka Government implemented the UGC Pay Scales on 1-1-2006. According to this order, subject to fulfillment of certain conditions, as and when faculty acquire PhD during their service, they have to be sanctioned three advance non-compoundable increment. 
2. There are many faculty who acquired PhD from 2002 to 2007. As per then Government Order, they had been sanctioned two advance increments (Rs. 420+Rs. 420 = Rs. 840). As per another Government Order, these two increments were converted into  6% per cent non-compoundable increment. As such is the case, the interpretation of Government now, that the compoundable increment sanctioned to faculty should be corrected has not relevance. UGC has already clarified this issue in the following clarification: 

According to the above clarification from UGC, non-compoundable means only advance increment. DA, and other allowances must be given on this increment.