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The Delhi High Court on Monday dismissed a plea challenging the Centre's decision to freeze the dearness allowance (DA) of public servants and pensioners in the aftermath of the COVID-19 pandemic. The HC said the government has the right to take a decision like that.
Under the All India Services (Dearness Allowance) Rules, 1972, a bench of judges Vipin Sanghi and Rajnish Bhatnagar said the Central Government is entitled to draw DA and it may enforce whatever conditions it finds necessary from time to time. The court also stated that the Center does not have a statutory obligation to continue to enhance the DA or Dearness Relief (DR) at regular intervals i.e. to revising the same upward time to time. About the proposed 4% hike in DA, the bench said the government did not take it away, it was postponed it till July 1, 2021 and it had the power to do so.
In view of the COVID-19 crisis, the petition had also opposed the decision of the Centre to delay the planned 4% increase in DA until July 2021.The petition had also argued that it was necessary to cut salaries and pensions at a time of financial hardship, which was not the case at the moment.
The Center raised by 1 percent to 5 percent in September of last year for central government employees and dearness relief for central government pensioners, benefiting 50 lakh employees and 61 lakh pensioners. "Release of additional Dearness Allowance (DA) installment is an increase of 1 per cent over the existing rate of 4 per cent of basic pay / pension, to account for the price rise. The new rate will apply from 1 July, "the official statement stated. Cabinet approved the hike on 13 March. However, on 23 April, the Ministry of Finance postponed the hike from January 2020 to 30 June 2021 in view of the COVID-19 pandemic.
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