DA Arrears: CM’s Reaction on Supreme Court Orders of Payment of DA Arrears to West Bengal Employees

DA Arrears Verdict: On the very day the State Budget was presented in the Assembly, significant news arrived from the Supreme Court for West Bengal government employees. The Apex Court has issued a major directive to the State Government regarding the long-standing Dearness Allowance (DA) case. Along with setting a deadline for clearing arrears, Chief Minister Mamata Banerjee has also broken her silence on the administration’s next steps.

Supreme Court’s Directive and Deadlines

On Thursday, a division bench comprising Justice Sanjay Karol and Justice Prashant Kumar Mishra delivered a crucial verdict regarding DA arrears under the 5th Pay Commission. To resolve the pending Dearness Allowance accumulated from 2008 to 2019, the court issued clear instructions:

• 25% Payment: The State Government must immediately clear 25% of the total DA arrears accumulated under the 5th Pay Commission.
• Deadline: This 25% amount must be disbursed to the employees by March 31, 2024.
• First Installment: The first installment of this payment must be made by March 6.
• Report Summoned: A ‘Compliance Report’ stating whether the court’s order has been duly followed must be submitted to the Supreme Court by April 15.

CM’s Reaction and Formation of New Committee

When asked about the Supreme Court verdict during a post-budget press conference, Chief Minister Mamata Banerjee stated that she had not yet received the copy of the order. She refrained from making any hasty comments on the matter. Mamata Banerjee said, “We will study the order copy thoroughly once it reaches us. We have formed a committee, and the government will act according to their recommendations.”

The State Government has already mobilized to review the situation:

• A 5-member special committee has been formed under the leadership of the Chief Secretary.
• This committee will examine the court order and provide legal and administrative advice.
• The Chief Minister confirmed that future steps will be taken based on the committee’s report.

Remaining Arrears and Future Roadmap

Regarding the remaining 75% of the arrears, the Supreme Court has directed the formation of a separate committee to decide how and when it will be paid. This panel, headed by a retired judge and including former Supreme Court Justice Indu Malhotra among others, will examine the matter. They will decide on the number of installments in which the remaining amount can be cleared.

Sources suggest that implementing this court order could impose a financial burden of approximately ₹10,400 crore on the state exchequer. The next hearing for the case is scheduled for May 15. The verdict had been reserved since the conclusion of the hearing on September 8 last year and has finally been pronounced.