Grant of HRA at a higher rate (“B” Category) to the Central Government Servants

Grant of HRA at a higher rate (“B” Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding

RD570050807IN

COURT-CASE
MOST URGENT

F.No.4-23/2000-PAP
GOVERNMENT OF INDIA
MINISTRY OF COMMUNICATION & IT
DEPARTMENT OF POSTS
(ESTABLISHMENT DIVISION)/P.A.P.SECTION
DAK BHAWAN, SANSAD MARG, NEW DELHI – 110 001

DATED, THE 01ST MARCH, 2016.

TO

The Chief Post Master General
N.E.Postal Circle
Shillong – 793001

ORDER

Subject: Grant of HRA at a higher rate (‘B’ Category) to the Central Government Servants Posted at Aizawl (Mizoram) – Court Case regarding.

Central Government Employees Federation of Mizoram, General Head Quarters, Aizawl, Mizoram made a representation to the Hon’ble Prime Minister of India claiming House Rent Allowance at “B” Class City rates and Compensation in lieu of Rent Free Accommodation at the rate of 10% to the Central Government Employees Posted in Mizoram State based on the judgement passed by Supreme court of India in Civil Appeal No.2715/91-Union of India & Ors V/s Shri S.K.Ghosh & Others and Department of Posts Order No.8-40/87-PAP dated 7.3.1994 & No.4-52/98-PAP dated 27.02.1999. On rejection of their claim, the Central Government Employees posted in the State of Mizoram approached the Central Administrative Tribunal, Guwahati under O.A.No.381/2000. The Hon’ble CAT, in Para -5 of its order dated 12.04.2002 pronounced as under:-

“In view of the position enumerated above,I am of the-view that the applicants are entitled to House Rent Allowance at the rate prescribed for B class cities to the Central Government Employees which should be payable to the applicants at the rate of 15% from 1.1.1986 to 30.9.1986 and from 1.10.86 to 30.9.1986 and from 1.10.86 to 30.9.86 and from 1.10.1986 at flat rate prescribed under O.M.dated 7.8.1987 read with another O.M.dated 13.11.1987 and the Notification GSR No.623 (E) amending the Fundamental Rule 45 A with effect from 1.7.1987.

As regards the claim for compensation in lieu of Rent Free Accommodation the respondents are to act in conformity with the Office Memorandum No.12-11/60-ACC-I dated 2.8.1960,O.M.dated 23.2.1986 and 22.5.1987 and also to O.M.dated 13.11.1987. The respondents shall examine the each case on merits and thereafter shall pass necessary order in individual cases. Rent free unfurnished accommodation is admissible to Central Government Employees having all India transfer liability only those who are posted in Mizoram or HRA at the rate prescribed from time to time. Compensation and admissible HRA shall be granted to those persons who are entitled to rent free accommodation and could not be provided accommodation and the above benefit shall be granted only to the Central Government employees having all India Transfer liability and Posted in Mizoram vide letter No.11015/1/E/(B)/76 dated 31.7.1977. The respondents shall examine the individual cases and thereafter pass necessary orders in those Cases, others will not be eligible for the same.The application is allowed in part, No Costs”.

2. The Department filed WP No.2955/2003 in the Hon’ble High Court of Guwahati against the orders of the CAT dated 12.04.2002.The Hon’ble High court in its judgment dated 25.4.2003, “disposed of the appeal with the observations that the directions given by the Learned Tribunal in the last part of the judgment quoted above shall be complied with by the Central Government after taking due consideration of the observations recorded within a period of 6 Months. The High court observed that the case of each and every Central Government employee posted in the state of Mizoram will have to be taken separately and appropriate orders shall be passed thereon after such consideration in terms of OM dated 23.09.86, 19.03.87 and 13.11.87. The Hon’ble High court, however, observed that the employees posted in Aizawl Headquarters of the State of Mizoram being a “C”Class city may not be entitled to HRA as prescribed for “B” class cities.”

3. Aggrieved by the order of the Hon’ble High Court of Guwahati, the Central Government Employees filed a civil appeal No.646/2005 in the Supreme Court of India. The Supreme court stayed the operation of the judgment order dated 25.04.2003 of the high court of Guwahati in WP No.2955/2003. The Honble supreme Court of India has dismissed the civil appeal and passed the orders dated 17.07.2013 as under:-

“We have thoughtfully considered the submissions of the learned counsel. In our view, the direction given by the Tribunal, which has been confirmed by the High Court, merely ordains consideration of the cases of each employee for grant of City compensatory Allowance in accordance with O.M. dated 02.08.1960, O.M. dated 23.02.1986 and 2.5.1987 as also O.M.dated 13.11.1987 and nothing more. Therefore, the impugned order as also the one passed by the Tribunal do not call for interference by this court under Article 136 of the Constitution.

With the above observation, the appeal is dismissed.

However, it is made clear that if the Government of India has issued fresh instructions after 13.11.1987 then the cases of the respondents shall be considered in accordance with the latest instructions.”

4. Consequent upon obtaining the concurrence of Integrated Finance Wing of this Department, the, matter was referred to Ministry of Finance, Department of Expenditure for decision.

5. Ministry of Finance, Department of Expenditure has considered the matter and accorded their approval in view of the decision taken by the Department of Posts to not to file any Review petition in the matter and as the Ministry of Law & Justice has advised Department of Posts to take administrative decision for implementation of the said order of Hon’ble Tribunal, implementation of the Order dated 12.04.2002 passed by the Hon’ble CAT, Guwahati Bench in O.A.No.381/2000 for grant of House Rent Allowance at “B/Y” class cities rates, as admissible from time to time, is agreed to.

6. Since, the Department of Posts had represented the Union of India on behalf of all the respondents Ministries/Departments/Offices, the approval accorded by the Department of Expenditure, Ministry of Finance is therefore conveyed to all the Respondent Ministries/Departments/Offices for issuing appropriate instructions for compliance of orders dated 12.04.2002 of Hon’ble CAT, Guwahati Bench in respect of the employees working under their administrative control who were/are applicants in the said OA No.381/2000.

7. This has the approval of the Competent Authority.

sd/-
(K.V.Vijayakumar)
Assistant Director General (Estt.)

Source: http://aipeup3bbsr.blogspot.in/

Issues related to House Rent Allowance : Views of Indian Audit & Accounts Department

2 . Issues related to Allowances : House Rent Allowance: The Commission recommends that HRA be paid at the rate of 24 percent, 16 percent and 8 percent of the new Basic Pay for Class X, Y and Z cities respectively. The Commission also recommends that the rate of HRA will be revised to 27 percent, 18 percent and 9 percent respectively when DA crosses 50 percent, and further revised to 30 percent, 20 percent and 10 percent when DA crosses 100 percent

Composite Transfer and Packing Grant (CTG) : The Commission recommended that CTG should be paid at the rate of 80 percent of last month basic’s pay. However, for transfer to and from the island territories of Andaman, Nicobar and Lakshadweep, CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

Reimbursement of staying accommodation charges: The commission made flowing recommendations:

Level	Level Ceiling for Reimbursement (Rs.)
14 and Above	7500
12 and 13	4500
9 to 11	2250
6 to 8	750
5 and below	450

For levels 8 and below, the amount of claim (up to the ceiling) may be paid without production of vouchers against self-certified claim only. The self-certified claim should clearly indicate the period of stay, name of dwelling, etc. The ceiling for reimbursement will further rise by 25 percent whenever DA increases by 50 percent. Additionally, it is also provided that for stay in Class ‘X’ cities, the ceiling for all employees up to Level 8 would be Rs.1,000 per day, but it will only be in the form of reimbursement upon production of relevant vouchers.

Reimbursement of Travelling Charges: The Commission made flowing recommendations:

Level	Level Ceiling for Reimbursement (Rs.)
14 and above	AC Taxi Charges up to 50 Km
12 and 13	Non-AC Taxi charges up to 50 KM
9 to 11	Rs.338 Per day
6 to 8	Rs.225 Per day
5 and below	Rs.113 Per day

Similar to Reimbursement of staying accommodation charges, for levels 8 and below, the claim (up to the ceiling) should be paid without production of vouchers against self certified claim only.

Family Planning Allowance:- The Pay Commission has recommended to abolish the Family Planning Allowances.

Views of Indian Audit and Accounts Department

In para 8.7.14, the Commission took note of the link between increase in HRA and increase in house rent after implementation of recommendations of 6th CPC. There was a sharp rise in the index from the first half of 2009, immediately following 6th CPC recommendations. There is likely to a similar rise in House Rent after implementation of recommendations of 7th CPC. Hence the existing percentage of House Rent may be retained at the rate of 30 percent, 20 percent and 10 percent of the new Basic Pay for Class X, Y and Z cities respectively

As the labour charges and cost of packing materials are continuously rising, the CTG may continue to be paid at the rate of 100 percent of last month’s Basic Pay.

The main objective of the Audit Department is to carry out Audit function which entails long periods of stay out of headquarters. Consequently, officials at pay level 5 to 11 have to visit small towns (at Block/Sub-division level). For such places, as per recommendations of the 7 th CPC, officials of pay level 8 and below will be entitled to the claim without production of vouchers (ie. against self-certified claim only), where as officials of the pay level 9 and above will have to produce vouchers for the similar claim.

To eradicate such anomalous situation, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

In the same analogy, as mentioned against reimbursement of staying accommodation charges above, it is submitted that claims, as admissible upto pay level 8, may be paid without production of vouchers against self-certified claim to all pay level officials.

This is an incentive for promoting small family norms and therefore, it needs to be continued

Grant of House Rent Allowance

Grant of House Rent Allowance to Railway employees posted to new Zones/new Divisions

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.E(P&A)II-98/HRA-6

RBE No: 20/2016
New Delhi, dated 17.02.2016

The General Manager/CAO’s
All Indian Railways & Production units.

Sub.: Grant of House Rent Allowance to Railway employees posted to new Zones/new Divisions – Regarding.

Attention is invited to the instructions contained in Board’s letters of even number dated 9.3.2004, 9.8.2005, 9.8.2006, 12.12.2007, 24.10.2008, 10.12.2009 , 01.07.2013 and 24.07.2014 on the above subject.

2. The matter has been considered by the Board subsequent to issue of letter No. E(G)2009 QR 1-2 dated 20.10.2014 and it has been decided that railway employees posted to ECR and NWR may be allowed house rent allowance upto 31.12.2015 on the same terms and conditions laid down in the letter of even number dated 09.03.2004 ibid and as amended/clarified from time to time.

3. This issues with the concurrence of the Finance Directorate of the Ministry of Railways.

(Salim Md. Ahmed)
Dy.Director/E(P&A)-II
Railway Board

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