Delhi High Court Rebukes MCD for Not Settling Employees Issues

The Delhi High Court strongly rebuked the Municipal Corporation of Delhi (MCD) on Thursday for its failure to settle arrears owed to all employees and pensioners as per the 7th pay commission, labeling the civic authority as “incompetent to the core” and unable to carry out its duties effectively.

These criticisms arose after petitioners informed the court that MCD had yet to fulfill its obligations to approximately 60,000 pensioners. Furthermore, it was revealed that MCD had opted to distribute the pending arrears in monthly installments of ₹15 crore.

During proceedings led by acting chief justice Manmohan, MCD’s representative, Divya Prakash Pande, stated, “We have cleared salaries and pensions up to February, and have addressed arrears in line with the 7th pay commission. While 40,000 individuals were settled earlier, around 60,000 remain. MCD has committed to allocating a minimum of ₹15 crore monthly towards settling arrears, encompassing both current employees and pensioners. The process has commenced and will conclude in due course.”

Expressing concern over MCD’s financial strain due to the substantial allocation towards pending payments, the court questioned the civic body’s capacity to fulfill its developmental obligations. “Your financial situation is dire. How do you intend to carry out city development activities? Are you solely existing to pay salaries? What about waste management? You have inherent responsibilities. How will you fulfill them? Your capacity is severely compromised,” remarked the bench, which included justice Manmeet Pritam Singh Arora.

The bench went further, asserting, “You are unable to function adequately. This situation warrants exploration of alternative arrangements. We will direct the Union of India to consider why it shouldn’t exercise its authority, including issuing a show-cause notice for dissolution. Your inability to deliver services is evident.”

The court’s deliberations occurred within the context of several petitions, including a suo motu plea, highlighting MCD’s failure to remunerate its workforce adequately.

Additionally, the court announced its decision to hold daily hearings starting April 8, emphasizing the necessity to streamline the entire process.