Punjab DA case: Chief Secretary appears in High Court, govt admits Rs 32,418 crore dues
PTC Web Desk: The Punjab and Haryana High Court on Tuesday held an important hearing on the unpaid dearness allowance (DA) of Punjab government employees and pensioners. Punjab Chief Secretary KAP Sinha appeared in person because the state had not followed the court’s earlier orders.
The Punjab Government told the court that its total DA liability for the period from July 1, 2021, to September 30, 2026, comes to Rs 22,818 crore. Including other dues, the total pending amount is Rs 32,418 crore.
At the last hearing, the court had imposed a fine of Rs 1 lakh on the Chief Secretary and made strong remarks. The Chief Secretary had then offered an unconditional apology in the court.
In his report, Sinha said there was no stay on the High Court’s August 3 judgment. Under that order, the government has to pay the arrears with 6 per cent annual interest.
Government’s explanation
The government said it decided to raise DA by 8 per cent at a meeting chaired by the Chief Minister on September 18. On September 23, the Finance Department issued a notification raising DA from 42 per cent to 50 per cent. The new rate applies from September 1, 2026. Salaries and pensions for September were paid at the higher rate in October.
The Chief Secretary also pointed to the size of the bill. The state’s yearly spending on salaries and pensions is around Rs 58,064 crore, according to the revised estimates for 2025-26. He said the budget would need proper provisions to clear the arrears.
On the legal side, the state said it filed a special leave petition in the Supreme Court on September 1, challenging the High Court’s August 3 ruling. The Supreme Court registry pointed out some procedural defects and the petition was filed again on October 1. The government said it is still pursuing legal remedies and that the delay in payment was not deliberate. It argued that a delay caused while seeking legal remedies should not be treated as wilful disobedience of the court’s order.
The government also accepted that the High Court’s order is still in force and that it must pay the arrears, with 6 per cent annual interest, to employees and pensioners.
What the court said
During the hearing, the Punjab and Haryana High Court observed that the state’s intention appeared clear: it did not want to give employees what they are owed. The court asked why the state had still not taken the matter forward in the Supreme Court.
The court made it clear that the government must follow the High Court’s order until the Supreme Court hears the case. It said the state has so far not explained why the order was not followed and called this a direct violation of the court’s directions. It also noted that the DA is not being paid and the defects in the Supreme Court petition are not being fixed.
The court is keeping a close watch on the case and on the payment of the arrears.
Also Read | Punjab DA arrears case reaches High Court again; employees seek contempt action against officials
- PTC NEWS
