The failure of the Municipal Corporation of Delhi (MCD) to fulfil its obligations towards the payment of salaries, pensions, and arrears for both current and former employees has drawn strong disapproval from the Delhi High Court.
The Division Bench, comprising Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, expressed dissatisfaction and warned that if the MCD continues to neglect these fundamental financial commitments, the Court may contemplate the possibility of winding up the municipal corporation.
Highlighting that this issue has persisted for four years, the Court stated that it is providing the MCD with a final opportunity to rectify the situation and ensure financial stability. The Bench emphasised that payment of wages, pensions and arrears in accordance with the Seventh Pay Commission is a statutory obligation, and if the MCD cannot meet the same, there will be consequences.
In its order, the Court reiterated that it will not wait for the MCD to find ways to enhance its financial resources. Additionally, the MCD was given a clear directive to settle the statutory obligation of paying wages in line with the Seventh Pay Commission.
In response to the Court’s stern remarks, MCD’s Counsel has assured the Court that salaries and pensions of employees would be disbursed within the next 10 days. It also pledged to provide information on addressing the issue of arrears.
The Counsel added that the MCD has been actively working to clear outstanding dues, with the arrears having reduced from nearly Rs 1,000 crore to Rs 400 crore.
The Court acknowledged these submissions, but informed that it would not tolerate further delays. The Court has set a deadline of four weeks for the matter to be concluded.
