Punjab and Haryana HC directs AAP govt to release pending DA in 15 days, warns of 6 % interest for delay
PTC News Desk: In a major setback to the Punjab government, the Punjab and Haryana High Court directed issuance of pending Dearness Allowance (DA) to nearly 8 lakh state employees and pensioners within 15 days.
The court also made it clear that if the payment is not made by the end of this month, the government will have to pay 6% interest on the pending amount.
The detailed written order is awaited.
Employees have been waiting for the DA since 2023. The Punjab government had consistently opposed the demand for DA payments during the proceedings, and it is now expected to challenge the High Court's order in the Supreme Court.
Government's arguments rejected
During the hearing, the Punjab government told the court that it had not accepted the report dated June 18, 2021. It also informed the court that a new plan had been introduced on February 18, 2025. The government argued that Punjab already offers its employees higher pay scales than many other states, making a separate DA payment unnecessary.
However, advocate Sunny Singla, appearing for the employees' organisations, argued that the Punjab government is legally bound to pay DA to its employees and pensioners in line with the Central Government pattern. He pointed out that IAS, IPS, IFS and judicial officers are already receiving DA at Central Government rates, while other employees and pensioners have been denied the same benefit.
The High Court rejected the government's arguments, observing that employees and pensioners in neighbouring Haryana also receive higher pay scales. The court clarified that the issue before it was not about pay scales but about the payment of Dearness Allowance.
Directions on pending DA since 2016
According to advocate Sunny Singla, the High Court also directed the Punjab government to release the pending DA due from January 1, 2016. The Chief Secretary has been instructed to file a compliance report before the High Court Registry within the stipulated time after implementing the order.
The court also advised the government to avoid unnecessary additional financial expenditure while complying with its directions.
- PTC NEWS
