New Delhi, March 20.
The Supreme Court on Monday granted the central government time till March 2024 to clear all OROP dues after the latter claimed that there was no money to pay these dues at one go and these could only be paid in instalments.
“All state governments are in fiscal deficit. This is an important fiscal management issue,” Attorney General for India K. Venkataramani told a bench led by Chief Justice of India D.Y. Chandrachud.
“We can’t just pay one section and not pay the others,” Venkataramani said. “We have to balance equities.”
The Ministry of Defence, he said, had consulted the Finance Ministry and had been told that there was no money to pay these dues at one go and these could only be paid in instalments. The government has to pay Rs 28000 cr by way of OROP dues to armed services pensioners.
In a short order, CJI Chandrachud, who had earlier expressed his unhappiness with the move to stagger these payments, allowed the government an extended deadline of March end 2024 to complete these payments.
The government is duty-bound to make these payments, he said, while allowing the government greater flexibility to pay these dues. “The amount is staggering. We were upset… but we can’t lose sight of national interest,” the CJI said.
As per the fresh schedule fixed by the court, gallantry-award winners and family pensioners (who have lost their breadwinners) will get their dues first, by April 30, 2023.
Those pensioners who are 70 and above will get their pensions either in one instalment or multiple instalments by June 30, 2023.
The other pensioners will get their pensions in equal instalments on three tranches on Aug 31, 2023, Nov 30, 2023, and 28th Feb, 2024.
These extended deadlines will not impact the computation of dues for the next equalisation, the bench clarified at the request of senior advocate Huzefa Ahmadi who was appearing for the armed forces personnel.
Ahmadi pointed out that these arrears were due since 2019 and urged the court to grant some interest on the delayed OROP dues, but the court did not accept this.
At the outset the AG sought the court’s indulgence to place a sealed cover compliance report which among other things pointed out the financial problems being faced by the government in paying OROP dues to 21 lakh pensioners.
The government has said that 4 lakh odd pensioners were not eligible for OROP as they were already getting higher pensions. But CJI Chandrachud insisted that the AG state the government’s position in public or claim privilege, which would allow the court examine this.
“We want to end this sealed cover business,” CJI Chandrachud said. He cautioned that once the top court follows sealed cover procedure, High Courts will also follow this.
