Big Relief: MCD assures Delhi High Court to clear arrears of 7th pay commission

The Municipal Corporation of Delhi (MCD) has pledged to settle the outstanding arrears of the 7th Central Pay Commission (CPC) recommendations for its former and current employees, as affirmed before the Delhi High Court. 

During the hearing, the MCD’s counsel informed the division bench of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora that an installment of approximately Rs 738 crore, designated as a ‘basic tax assignment,’ is expected from the Delhi government shortly. Upon receipt of this amount, the MCD committed to disbursing the arrears to its employees, including retiral benefits for former staff, within 12 weeks. 

Additionally, the corporation pledged to ensure timely payment of salaries and pensions for both existing and former employees in the future.

Acknowledging the MCD’s commitment, the bench directed the Delhi government to release the Rs 738 crore installment within 10 working days. The court emphasized that any breach of this assurance would warrant contempt proceedings against the MCD Commissioner. The matter has been scheduled for compliance review on July 23.

Meanwhile, the Delhi government’s counsel informed the court that the payment process is underway and requested an extension until April 25 for marking the payment.

The High Court’s hearing stemmed from a series of petitions regarding the delayed disbursement of salaries, pensions, and arrears by the MCD. Earlier, on March 1, the bench had expressed concerns over the corporation’s financial viability, given the prolonged delay in settling the 7th CPC arrears.