Indian Railways writes off residential arrear of 72 months, approves 10% yearly hike in maintenance fee

Indian Railways employees who have been living in quarters or accommodation provided to them by their employer have good news to cheer about. The railways has decided to write-off the licence fee (maintenance fee) arrears for a period of 72 months between 01.07.2010 and 01.07.2016. The railway board had revised the licence fee in December 2017. However, the move has been criticised by many. Since the decision in this regard was disputed, the employees did not pay the increased license fee. However, the railway board in its meeting last month had decided to write off the rent arrears accumulated for the said period. 

The railway board has also approved a 10% yearly rent hike with effect from 1st July every year retrospectively from 01.07.2017. Thus, the employees living in railway quarters will have to pay rent arrears dues for the last 21 months.

Below are the key highlights from the railway board's new notification:

1. The flat rate of the licence fee (Standard Rent) for residential accommodation over the Indian Railways were revised w.e.f 01.07.2010, 01.07.2013 and 01.07.2016 and notified vide Board's letter number of even number dated 26.12.2018 retrospectively.

2. In light of various representation received, Full Board have, inter alia, considered the issue of non-recovery of the arrears on quarter rent from 01.07.2010 to 30.06.2016 and decided the followings:

I. Actual recoveries of revised flat rates of licence fee (Standard Rent) be effected only from 01.07.2016 and it has also been brought out that in effect this implies write-off of a significant amount between 01.07.2010 to 01.07.2016.

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II. A general norm of 10% increase in licence fee effective from 1st July every year (first such increase is due w.e.f 01.07.2017 and thereafter as on 01.07.2018 retrospectively and so on over the existing licence fee as on 30th June of the each year) be effected to ensure earlier recoveries of enhanced licence fee till further revision.