Release Basic Tax Assignment Instalment Of ₹738 Cr To MCD To Enable Payment Of Outstanding Dues: High Court To Delhi Govt

The Delhi High Court has recently directed the Delhi Government to release a basic tax assignment instalment of Rs. 738 crores to the Municipal Corporation of Delhi (MCD) to enable payment of outstanding dues by the civic body to its former and serving employees.

In an order passed on April 08, a division bench comprising Acting Chief Justice Manmohan and Justice Manmeet PS Arora directed the Delhi Government to release the amount within 10 working days.

The counsel appearing for MCD informed the court that as soon as the amount is received, all its serving as well as former employees shall be paid their outstanding dues in accordance with the 7th pay commission (CPC).

The court was assured that the retirement benefits of the former employees shall be paid within 12 weeks.

The counsel further told the court that in future, salaries and pensions shall be paid on time to the existing and former employees.

“The aforesaid statements, assurances and undertakings given by learned counsel for the MCD before this Court are recorded and the MCD is held bound by the same,” the court directed.

The bench disposed of a batch of pleas, some of which were moved in 2017, while some were filed in the wake of COVID-19, concerning the issue of non-payment of salaries to various employees of MCD, previously bifurcated as NDMC, SDMC and EDMC.

Some of the pleas are moved by retired employees of the civic body raising a grievance that their pensions were not being released.

The matter is now listed for compliance on July 23.

Earlier, the court had rapped the MCD over unpaid dues and arrears of the 7th CPC to employees of the civic body.

In January last year, the court summoned Finance and Urban Development Secretaries of the Delhi Government and the MCD Commissioner over failure to make payment of salaries to employees of the civic body.

The court had said that was unfortunate that class III and IV employees were not being paid despite assurance of making payments “from time to time.”

Title: Court on its own motion v. Union of India and other connected matters

Citation: 2024 LiveLaw (Del) 442

Click here to read order