MCD to release Rs 15 crore monthly to clear pensioners' pending arrears

MCD news: The Municipal Corporation of Delhi has decided to release Rs 15 crore every month in accordance with the recommendations of the seventh Central Pay Commission to clear the pending arrears of its pensioners, according to an official document.

The civic body has issued a conveying order to disburse the first instalment of the pending arrears of the pensioners, many of whom have been waiting to get their dues for over seven years.
This comes after the Delhi High Court pulled up the MCD for the second time while hearing a batch of pleas last week over non-payment of salaries and pensions to municipal staff and retired employees and gave an ultimatum to pay dues for the month of February within 10 days.

The court cautioned the civic body that it would direct its dissolution and replace it with a "better system" if the corporation is unable to make itself financially viable. "The competent authority vide order dated 29.04.2024 is pleased to allow the release of Rs 15 crore every month on account of seventh CPC arrears of pensioners,” the order issued by the finance, accounting, and planning department of the MCD dated March 6 read.

"In view of the above, Rs 15 crore is being released as the seventh CPC arrears of pensioners. Accordingly, you are requested to make the payment to pensioners as per rules," it read.
The civic body has a liability of Rs 403 crore amounting to the non-payment of salaries and pensions, according to the MCD's counsel who informed the court that dues of only a few employees are left to be cleared.

The corporation has already received Rs 803.69 crore from its parent AAP-led Delhi government, the state government's lawyer had said. Earlier in February, the Delhi High Court had warned the MCD to augment its resources to clear the dues stating it will wind up the civil body if it fails to pay the employees.