Last chance to pay salaries, pension to staff or will wind up MCD: Delhi HC

The Delhi High Court on Friday gave a last opportunity to the Municipal Corporation of Delhi (MCD) to set its house in order by augmenting resources and paying arrears of salaries and pension to employees or else it will wind up the civic body.

The high court said the matter relating to non-payment of salaries to staff and retired employees is dragging on for long and added that it was the civic agency's statutory obligation to pay employees in accordance with the 7th Pay Commission.

"The court has made it clear to the MCD counsel that it is not going to wait for the MCD to find ways and means of augmenting its resources. The liability to pay the 7th Pay Commission wages is a statutory obligation. If the MCD is not in a position to pay the basic wages then consequences will follow," a bench of Acting Chief Justice Manmohan and Justice Manmeet PS Arora said.

The court was hearing a batch of pleas relating to the non-payment of salaries and pensions to MCD employees and retired staff, respectively.

During the hearing, the court was informed by the MCD counsel that the civic body has paid salaries and pensions to some of the employees and retired staff members till January and the arrears of others would be cleared within 10 days.

He sought some time to get instructions regarding payment of arrears of 7th Pay Commission.

He added that arrears of 7th Pay Commission are not regarding all employees and the MCD has been paying its staff in terms of 7th Pay Commission and few of them are left for which the liability is of Rs 403 crore.

The Delhi government lawyer submitted that Rs 803.69 crore was sanctioned by the government to the MCD on January 24 and it has been credited in the latter's account.

The court observed that the problem is MCD is not willing to give up any authority.

"No one wants to give up today, even at the worst of financial health they will say we have money if they are getting some more power. They just try to grab more power and authority. Every institution is doing this. But you must have the resources to deal with that issue. If he does not have it, how are we concerned whether he is going to augment his resources tomorrow or day after," the bench said.

While pulling up the MCD, the bench said, "They are inefficient and they will also make us inefficient in the process. This matter is dragging on for four years and we are waiting for one good day when you will augment your resources from 2020. We don't know when this good day is going to arrive. We are giving you the last opportunity to set your house in order in a week or 10 days otherwise we will say it is a fit case where the municipality needs to be wound up."

The court listed the matter for further hearing on March 1.

"Please tell your commissioner that we will be taking strict action. We are not going to get lost and we will not wait for four years. The matter will come to an end in four weeks. You have to now show the colour of money and if you don't have you will be wound up," it said.