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

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/

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Re-Classification/Upgradation of Cities/Towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance (HRA) to Central Government employees.

No.2/5/2014-E,II(B)

Government of India

Ministry of Finance

Department of Expenditure

New Delhi, 21st July, 2015.

OFFICE MEMORANDUM

Subject:- Re-Classification/Upgradation of Cities/Towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance (HRA) to Central Government employees.

Reference is invited to this Department’s O.M. No. 2(13)/2008-E.11(B) dated 29.08.2008 relating to grant of House Rent Allowance (HRA) to Central Government employees on the recommendations of the 6th Central Pay Commission (CPC) whereby a list of cities/towns classified as “X”, “Y” and “Z” for the purpose of grant of HRA was enclosed as Annexure. The matter relating to re-classification of cities/towns on the basis of Census-2011 for the purpose of grant of HRA to Central Government employees has been considered by the Government.

2, The President is pleased to decide that in supersession of all the existing orders relating to classification of cities/towns for the purpose of grant of HRA to Central Government employees, cities/towns shall now be re-classified as “X”, “Y” and “Z” for the purpose of HRA as enumerated in the Annexure to these orders.

3. Consequent upon implementation of the recommendations of the 5th Central Pay Commission, certain cities/towns were placed in a lower classification as compared to their existing classification for HRA purpose, vide this Department’s G.M. No. 2(30)/97- E.II(B) dated 03.10.97. However, these cities/towns were allowed to retain their existing higher classification, vide Para 3 thereof; and further extended vide O.M. No. 2(21)/E.II(B)/2004 dated 16.03.2005 & O.M. No. 2(13)/2008-E.II(B) dated 07.01.2009. As other cities/towns to which protection of retaining earlier higher classification was allowed, got upgraded during the intervening period and as on date only two cities i.e. Ajmer in Rajasthan and Durgapur in West Bengal were retaining such protection. Consequent upon upgradation of these two cities also on the basis of their population as per Census-2011, provisions contained in Para 3 of this Department’s O.M. No. 2(30)/97-E.II(B) dated 03.10.97 which Were allowed to further continue vide G.M. dated 16.03.2005 & 07.01.2009, stand withdrawn/discontinued.

4. Special orders allowing continuance of HRA at Delhi (‘X” class city) rates to Central Government employees posted at Faridabad, Ghaziabad, NOIDA and Gurgaon, at Jalandhar CY” class city) rates to Jalandhar. Cantt., at “Y” class city rates to Shillong, Goa & Port Blair vide this Department’s O.M. No.2(13)12008-E.11(B) dated 29.08.2008, and continuance of HRA at par with Chandigarh (“Y” class city) to Panchkula vide this Department’s O.M. No,2(13)/2008-E.II(B) dated 04.03.2011, shall continue to be applicable till the recommendations of 7th CPC are considered by the Government.

5. These orders shall take effect from 1st April, 2015.

6. The Orders will apply to all civilian employees of the Central Government.The orders will also be applicable to the civilian employees paid from the Defence services Estimates. In respect of Armed Forces personnel and Railway employees, separate orders will be issued by the Ministry of Defence and the Ministry of Railways, respectively.

7. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the comptroller & Auditor General of India.

8. Hindi version is attached.

Sd/-

(Subhash Chand)

Director

Source:http://finmin.nic.in/the_ministry/dept_expenditure/notification/hra_citiesclassification/21-07-2015.pdf

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Cabinet Approves Revision and Up gradation of Cities for granting HRA and Transport Allowance

Press Information Bureau 

Government of India

Cabinet

Revision of the classification/upgradation certain cities/towns on the basis of Census-2011 for the purpose of grant of House Rent Allowance and Transport Allowance to Central Government employees 

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has given its approval to the proposal of the Ministry of Finance, Department of Expenditure for reclassification/upgradation of certain cities/towns on the basis of Census-2011, for the purpose of grant of House Rent Allowance (HRA) and Transport Allowance to Central Government employees.

On the basis of the final population figures of Census-2011, two cities have qualified for being upgraded from 'Y' class to 'X' class and 21 cities have qualified for being upgraded from 'Z' to 'Y' class for the purpose of HRA. Six cities have qualified for being upgraded from "Other Places" to specified higher class for the purpose of Transport Allowance.

The revised classification of cities shall take effect from 01.04.2014. The impact on the exchequer on account of upgradation of 29 cities, would be approx. Rs.128 crore for the year 2014-15.

Background:

HRA and Transport Allowance are admissible to Central Government employees depending upon employees' Basic Pay (including NPA where applicable)/Grade Pay and the classification of the city/town where they are posted. The existing classification of cities/towns in different classes viz. 'X', 'Y' and 'Z' for the purpose of HRA and 13 specified cities classified earlier as 'A-1'/ 'A' and "Other Places" for the purpose of Transport Allowance, is as per the criterion recommended by the 6th Central Pay Commission. The existing qualifying limits of population for classification for HRA purpose is 50 lakhs & above for 'X', 5 - 50 lakhs for 'Y' and below 5 lakhs for 'Z' class city. Transport allowance is payable at 'higher rates' in 13 specified cities classified earlier as 'A-1' / 'A' (that is those cities having population of 20 lakhs & above) and at 'lower rates' in all other places.

The classification of cities/towns for this purpose is revised on the basis of their population as reflected in the decennial census report. The existing classification of various cities/towns is based on 2001 Census figures. The criterion of population for this purpose has been followed as recommended by the Central Pay Commissions.

Cities/towns to be upgraded on the basis of census-2011 for grant of House Rent Allowance

Cities to be upgraded/re-classified as "X"

Ahmadabad(UA)

Pune (UA)

Cities to be upgraded/re-classified as "Y"

Nellore (UA)

Gurgaon (UA)

Bokaro Steel City (UA)

Gulbarga (UA)

Thrissur (UA)

Malappuram (UA)

Kannur(UA)

Kollam (UA)

Ujjain (M. Coprn.)

Vasai-Virar City (M. Corpn.)

Malegaon (UA)

Nanded-Waghala (M.Corp.)

Sangli (UA)

Raurkela (UA)

Ajmer (UA)

Erode (UA)

Noida (CT)

Firozabad (NPP)

Jhansi (UA)

Siliguri (UA)

Durgapur (UA)

Cities/towns to be upgraded on the basis of census-2011 for grant of Transport Allowance

Cities to be added for higher rates of Transport Allowance (i.e. which have population of more than 20 lakh to qualify for earlier classification as “A-1”/ “A” as stipulated in O.M. No. 21(2)/2008-E.II(B) dated 29.8.2008):

 Patna (UA)

Kochi (UA)

Indore (UA)

Coimbatore (UA)

Ghaziabad (UA)

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Re-classification of Saharanpur as ‘Y’ class city for the purpose of House Rent Allowance-regarding.

GOVERNMENT OF INDIA

MINISTRY OF RAILWAYS

RAILWAY BOARD

S.No.PC.VI/274
No.E(P&A)11-2011/HRA-4

RBE No. 123/2011.

New Delhi, dated 16.9.2011.

The General Managers/CAOs,
All Indian Railways & Prod.Units etc,
(as per mailing lists No.I & II).

Subject:- Re-classification of Saharanpur as ‘Y’ class city for the purpose of House Rent Allowance-regarding.

   Attention is invited to Board’s letter No. E(P&A)II/2004/HRA-l6 dated 28.1.2005 and letter of even number dated 12.9.2008 regarding re-classification of cities/towns on the basis of 2001 Census for the purpose of grant of House Rent Allowance (HRA) to Railway employees.

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Decision of the Government on the recommendations of the sixth Central Pay Commission relating to re-classification of cities/towns for grant of House Rent Allowance (HRA).

No.2(13)/2008-E.II(B)

Government of India

Ministry of Finance

Department of Expenditure

*****

New Delhi, 4th March, 2011.

OFFICE MEMORANDUM

Subject :- Decision of the Government on the recommendations of the sixth Central Pay Commission relating to re-classification of cities/towns for grant of House Rent Allowance (HRA).

   The undersigned is directed to refer to para 6 of this Ministry’s O.M. of even number dated 29.08.2008 on the above mentioned subject, vide which the special dispensation for grant of HRA has been allowed to continue to (i) Faridabad, Ghaziabad, Noida & Gurgaon at “X” class city rates and (ii) Jalandhar Cantt., Shillong, Goa & Port Blair at “Y” class city rates and to state that the special dispensation allowed to Panchkula for grant of HRA at par with Chandigarh vide this Ministry’s O.M. No.2(2)/2001E.II(B) dated 16.06.2003, shall also continue.

   2. In this context, it is also clarified that any other similar special dispensation allowed by this Ministry in the past in respect of other cities for grant of HRA at higher rates and not specifically mentioned in this Ministry’s O.M. of even number dated 29.08.2008, shall continue to apply, if the same has not been superceded / dispensed with or the existing classification of such city has not been revised to a higher classification on account of the population criteria, vide O.M. dated 29.08.2008.

   3. These orders shall be effective from 1st September,2008.

   4. All other conditions governing grant of HRA under existing orders shall continue to apply.

   5. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders issue in consultation with the Comptroller & Auditor General of India.

   6. Hindi version is attached.

-sd-

(Anil Sharma)

Under Secretary to the Govt. of India

Click Here To View The Order

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