SC Slams Centre for Delayed OROP Decisions, Imposes ₹2 Lakh Fine

The Supreme Court heavily criticized the Centre on Tuesday for failing to make any decision for years regarding the pension payable to retired regular captains of the Army under the One Rank One Pension (OROP) scheme.

The Court also imposed a fine of ₹2 lakh on the Central Government.

A bench of Justices Sanjiv Khanna and R Mahadevan gave the Centre one last opportunity until November 14 to resolve the anomalies concerning the pension of these retired officers under the scheme. The Court directed that the ₹2 lakh fine be deposited into the welfare funds of the Army and warned the government that if a decision is not made by November 14, it would consider directing a 10 percent increase in pension for retired regular captains.

The Apex Court scheduled the matter for further hearing on November 25. Appearing for the Central Government, Additional Solicitor General Aishwarya Bhatti stated that the Kochi bench of the Armed Forces Tribunal (AFT) had identified six anomalies that need rectification, but the government has yet to address these issues.

The bench expressed frustration, asking, “For how many years will this continue? Either you pay an enhanced pension by 10 percent or we will impose a cost on you. We wanted a decision, but none has been made. This matter has been pending since 2021.”

Bhatti argued that the government cannot make piecemeal decisions and must consider all six anomalies holistically, as the decision may affect others. She offered an apology and requested three months to resolve the issue, promising to file an affidavit.

Initially, the Bench was unwilling to grant more time or accept an affidavit, threatening to direct an enhanced pension for the retired officers. Justice Khanna remarked, “If the government is not taking a decision, I cannot do anything. This does not help the officers. They are retired captains with no say. Either you start paying 10 percent more or pay the cost. The choice is yours.”

As the bench began drafting an order for the enhanced pension, Bhatti requested a cost instead, arguing it would be more equitable. The Bench then gave the government until November 14 as a final opportunity but imposed a ₹2 lakh fine, to be deposited in the armed forces welfare fund within four weeks.

On July 23, the Supreme Court noted that the AFT’s regional bench had ordered on December 7, 2021, that the government decide on the pension for retired regular captains due to anomalies needing resolution for the OROP implementation. The Centre challenged the AFT order and involved 13 retired captains as parties to the dispute.

The bench observed that the court had repeatedly adjourned the matter to allow the government to decide on the pensions. It was inclined to impose exemplary costs and direct a 20 percent pension increase from the date the OROP scheme became applicable. However, it granted the government a final opportunity to obtain instructions, re-listing the case for July 30.

The dispute originates from the OROP scheme introduced by the Centre in 2015, which aimed to align the pensions of past retirees with current retirees. Anomalies in the pension tables for captains and majors arose due to inadequate data on officers in these ranks, as the minimum rank for pensionable service is lieutenant colonel.

The Ministry of Defence appointed a One Man Judicial Committee (OMJC) in 2016 to address these anomalies, but no action was taken thereafter. The Kochi Bench of the AFT directed the ministry to resolve the issues based on the OMJC’s recommendations in a timely manner. The Centre challenged this AFT order in the Supreme Court.