"Fix Your House": Delhi High Court Warns MCD On Non-Payment Of Employees

On Friday, the Delhi High Court criticised the Municipal Corporation of Delhi (MCD) over its failure to pay wages and pensions of employees – former and currently serving.

The division bench of Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora warned the MCD to pay off the salaries of employees or else the court may consider ordering the winding up of the civic body.

“We are giving you the last opportunity. You fix your house. Put it in order. Otherwise, we will say this is a fit case where municipalities need to be winded up…This court has made it clear that it is not going to wait for MCD to find ways and means to augment its resources,” the Court stated, as per a Bar and Bench report.

The Court reminded the corporation that paying salaries, pensions and arrears is a statutory obligation as per the seventh pay commission, failing which the MCD will have to face serious consequences.

MCD Standing Counsel Divya Prakash Pande assured the Court that the non-payments of former and current employees will be released in 10 days. Pande also claimed that the civic body has been taking necessary steps to clear all dues, with arrears coming down to 400 crore from 1000 crore, according to the Bar and Bench report.

“We will come up with positive instructions and inform when we will clear it,” Pande added as reported by Bar and Bench.

After hearing several petitions by MCD employees to non-payment of wages, pensions and arrears on time, the Court asserted it will end this matter within four weeks.

Appearing for the Delhi government, Advocate Satyakam informed the Court that the state government had sanctioned 803 crores for the MCD on January 24, and that the amount had been credited to the civic body”s account.

(With inputs from Bar and Bench)