Delhi HC dismisses plea challenging Centre's decision to freeze hike in dearness allowance

Delhi High Court on Monday dismissed a plea challenging Centre's decision to freeze dearness allowance (DA) of public servants and pensioners in wake of COVID-19 pandemic. HC said that  government has power to take such a decision.

A bench of justices Vipin Sanghi and Rajnish Bhatnagar said under All India Services (Dearness Allowance) Rules, 1972, entitlement to draw DA is determined by central government and it can impose whatever conditions it deems fit from time to time. court also said re is statutory obligation on Centre to continue to enhance DA or Dearness Relief (DR) at regular intervals i.e. to revise same urds from time to time. With regard to proposed four-per cent hike in DA, bench said government was t taking it away, it was only postponing it till July 1, 2021 and it had power to do so.

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petition had also opposed Centre's decision to delay proposed four-per cent hike in DA till July 2021 in view of COVID-19 crisis. petition had also contended that reduction of salaries and allowances could be done at a time of a financial emergency, which was t case presently.

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Increase in dearness allowance and dearness relief

In September last year, Centre increased in dearness allowance (DA) for central government employees and dearness relief for Central government pensioners by 1 per cent to 5 per cent, benefiting 50 lakh employees and 61 lakh pensioners. "Release of additional installment of DA is an increase of 1 percent over existing rate of 4 percent of basic pay/pension, to compensate for price rise. new rate will be applicable from July 1," official statement stated. On March 13, Cabinet approved hike. However, on April 23, Ministry of Finance postponed hike from January 2020 till June 30, 2021, in view of COVID-19 pandemic. 

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(with PTI inputs)