Delhi HC Warns MCD of Dissolution Over Unpaid Wages and Pensions

The Delhi High Court has issued a final warning to the Municipal Corporation of Delhi (MCD) to address its financial issues by increasing resources and settling outstanding salary and pension payments for employees, or face the possibility of dissolution.

The court emphasized the prolonged delay in addressing the matter of unpaid wages and pensions, stressing that it is the statutory responsibility of the civic body to adhere to the 7th Pay Commission guidelines for employee compensation.

During the proceedings, a bench of Acting Chief Justice Manmohan and Justice Manmeet PS Arora, reiterated to the MCD counsel that it will not tolerate further delays in rectifying the situation. The court highlighted that failure to fulfill basic wage obligations would have consequences. The case pertains to multiple petitions concerning unpaid wages and pensions for MCD employees and retirees.

The MCD counsel informed the court that salaries and pensions have been disbursed to some employees and retirees up to January, with arrears expected to be settled within 10 days. The issue of arrears related to the 7th Pay Commission was also addressed, with the MCD stating that it has paid most employees accordingly, except for a few, resulting in a liability of Rs 403 crore.

The Delhi government’s representative disclosed that a sum of Rs 803.69 crore was allocated to the MCD on January 24, which has been credited to its account. Despite this, the court expressed frustration with the MCD’s reluctance to relinquish authority and its failure to address financial shortcomings. The bench emphasized the need for immediate action and warned of potential dissolution if the MCD fails to rectify the situation within a week or 10 days.

The court firmly stated that strict action will be taken and urged the MCD to demonstrate accountability. The matter has been scheduled for further hearing on March 1, with the court emphasizing the need for prompt resolution.