NON PAYMENT INTEREST ON ARREARS PRE-2006 PENSIONERS WEF 1/1/2006.

NON PAYMENT INTEREST ON ARREARS PRE-2006 PENSIONERS WEF 1/1/2006. IN VIOLATION OF DELHI HIGH COURT DIRECTION[ INTEREST SHOULD BE PAID @ 9% wef 1/4/2014] AND RBI CIRCULAR.[ RBI CIRCULAR [ BANK SHOULD COMPENSATE PENSIONERS by paying compensation at Bank Rate Plus 2% Penal Interest ] RESPECTED SIR, 1. KINDLY REFER ;- A] GOI LETTER NO: No.38/37/08-P&PW(A) Dated the 30th July, 2015 ,WHICH IS APPENDED BELOW. B] On 15.5.2014 the Hon'ble CAT Principal Bench New Delhi disposed of the contempt petition No. 158/2012 WHICH IS APPENDED BELOW. C] DELHI HIGH COURT LETTER ... DIRECTING PAYMENT OF INTEREST @ 9% wef 1/3/2013 FOR DELAYED PAYMENT OF ARREARS. it will also carry interest at 9% with effect from 01.03.2013." D]RBI CIRCULAR EXTRACT VIDE... (Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated 9th April, 2010. MENTIONING PAYMENT OF INTEREST @ by paying compensation at Bank Rate 8 %Plus 2% Penal Interest. 2. THE GOI LETTER MENTIONED IN PARA [1{A}] IS SILENT ON PAYMENT OF INTEREST .ACCORDINGLY THE PCDA CIRCULAR 547 & 548 ON THE SUBJECT ARE ALSO SILENT ON PAYMENT OF INTEREST ON ARREARS. 3] BANKS ARE NOT THUS PAYING INTEREST TO PENSIONERS NEITHER ON DELHI HIGH COURT RULING NOR ON RBI CIRCULAR BASIS, 4] THE CASE WAS TAKEN ON 02 AUG, 2015. UP WITH Sh.Harit 'gingh) Deputy Secretary to the Government of India, THE AUTHOR OF GOI LETTER. WHEN NO REPLY WAS RECEIVED THEN THE CASE WAS EXPEDITED AGAIN BUT STILL NO REPLY SO FAR. 5.] OUR TRI-SERVICES HQ HAVE FULL FLEDGED PAY COMMISSION CELL HEADED BY MAJ GEN RANK OFFICER ALONG WITH EX-SERVICEMEN CELL. IT PAINS ME THAT THEY NEVER REACT & PREFER TO REMAIN SILENT A] SUM OF GRADE PAY... FINALLY CASE WAS SETTLED BY SC VIDE vide O.A No. 655/2010 CAT CASE 065/2010. B] ABOLITION OF RANK PAY IN 1996 LETTER. No.38/37/08-P&PW(A) Dated the 30th July, 2015` WITHOUT ANY LOGIC & VISION, THE RANK IS BASIC STRUCTURE OF ARMY & STRUCTURE HAS BEEN REMOVED BY OUR BABUS VIDE 1996 LETTER & VIOLATION OF ARTICLE 18 OF CONSTITUTION. KINDLY SEE MY MAIL DATED 05 0CT,2015 FOR COMPLETE DETAILS. C] NOW THIS PRESENT CASE LETTER... NON PAYMENT OF INTEREST ON ARREARS wef 1/1/2006 IS A VIOLATION OF RBI CIRCULAR & DELHI HIGH COURT JUDGEMENT 6] THUS THERE IS NOW NEED TO RAISE THE LEVEL FOR SPEEDY PAYMENT OF INTEREST TO PRE-2006 OLD PENSIONERS & WIDOWS. 7] I. REQUEST YOU TO USE YOUR GOOD OFFICE FOR ISSUING OF DIRECTIONS FOR PAYMENT OF INTEREST ON ARREARS wef 1/1/2006 AS DEEMED FIT ie EITHER ON BASIS OF RBI CIRCULAR OR DELHI HIGH COURT DIRECTIONS. WITH BEST WISHES & WARM REGARDS COL LAMBA[ ONE MAN ARMY] No.38/37/08-P&PW(A) Government of India Ministry of Personnel, PG & Pensions Department of Pension & Pensioners' Welfare 3rd Floor, Lok Nayak Bhawan Khan Market, New Delhi Dated the 30th July, 2015` Office Memorandum Sub: - Revision of pension of pre-2006 pensioners - reg. The undersigned is directed to say that as per Para 4.2 of this Department's OM of Even number dated 1.9.2008 relating to revision of pension of pre-2006 pensioners w.e.f. 1.1.2006, the revised pension w.e.f. 1.1.2006, in no case, shall be lower than 50% of the sum Of the minimum of pay in the pay band and the grade pay thereon corresponding to the perceived Pay scale from which the pensioner had retired. A clarification was issued vide DoP&PW OM of even number dated 3.10.2008 that the pension calculated at 50% of the Minimum of pay in the pay band plus grade pay would be calculated at the minimum of the Pay in the pay band (irrespective of the pre-revised scale of pay) plus the grade pay Corresponding to the pre-revised pay scale. 2. Several petitions were filed in Central Administrative Tribunal, Principal Bench, and New Delhi inter alia claiming that the revised pension of the pre-2006 pensioners should not be Less than 50% of the minimum of the pay band + grade pay, corresponding to the pre-revised Pay scale from which pensioner had retired, as arrived at with reference to the fitment tables Annexed to Ministry of Finance, Department of Expenditure OM No.l/1/2008-IC dated 30th August, 2008. Hon'ble CAT, Principal Bench, New Delhi vide its common order dated 1.11.201lin OA No.655/2010 and three other connected OAs directed to re-fix the pension of All pre-2006 retirees w.e.f. 1.1.2006 based on the Resolution dated 29.8.2008 of the Department of Pension & Pensioners' Welfare and in the light of the observations of Hon'ble CAT in that order. 3. The above order was challenged by the Government by filing Writ Petition No.153512012 in respect ofOA No. 655/2010 and WP No.2348-50/12 in respect of the three Other connected OAs in the High Court of Delhi. The Hon'ble High Court in Its common Order dated 29.4.2013 noted that the DoP&PW had, in the meanwhile, issued an OM No.38/37/08-P&PW (A) dated 28.1.2013 which provided for stepping up of pension of pre- 2006 pensioner’s w.e.f. 24.9.2012 to 50% of the minimum of pay in the pay band and grade Pay corresponding to pre-revised pay scale from which the pensioner had retired. Hon'ble High Court observed that the only issue which survived was, with reference to Paragraph 9 of OM dated 28.1.2013 which makes it applicable w.e.f. 24.9.2012 instead of 1.1.2006. Hon'ble High Court of Delhi dismissed the Writ Petition No.1535/20 12 along with three other Writ Petitions vide its order dated 29.4.2013. Special Leave Petitions (No.23055/2013 and No.36148-50/2013) filed against the said order dated 29/412013 of the Hon'ble Delhi High Court has also been dismissed by the Hon'ble Supreme Court. 4. Accordingly, in compliance with the above judicial pronouncements, it has been Decided that the pension/family pension of all pre-2006 pensioners/family pensioners may be Revised in accordance with this Department's OM No.38/37/08-P&PW(A) dated 28.1.2013 with effect from 1.1.2006 instead of24.9.2012. Further, this benefit has already been granted to the Applicants in OA No. 655/2010 vide OM of even No. dated 26/08/2014 read with OM dated 19/09/2015 following dismissal of SLP (C) No.23055/2013 by the Hon'ble Supreme Court. 5 In case the consolidated pension/family pension calculated as per para 4.1 of O.M. No.38/37/08-P&PW (A) dated 1.9.2008 is higher than the pension/family pension calculated in the manner indicated in the O.M. dated 28.1.2013, the same (higher consolidated pension/family pension) will continue to be treated as basic pension/family pension. 6. All other conditions-as given in OM No. 38/37/08-P&PW (A) dated 1.9.2008, as amended from time to time shall remain unchanged. 7. Ministry of Agriculture, etc. are requested to bring the contents of these orders to the notice of Controller of Accounts/Pay and Accounts Officers and Attached and subordinate Offices under them on a top priority basis. All pension disbursing offices are also advised to prominently display these orders on their notice boards for the benefit of pensioners. 8. This issues with the approval of Ministry of Finance ID Note No. 1(9)/EV/2011- Vol.1I dated 24.7.2015. 9. Hindi version will follow. tv~~~ (Harj it 'gingh) Deputy Secretary to the Government of India To 1. All Ministries/Departments (as per standard mailing list) 2. All SCOV A Members 3. All identified Pensioners Associations Copy to NIC for uploading on the website of the Department. CAT CASE . Hon'ble CAT Principal Bench New Delhi disposed of the contempt petition No. 158/2012 1.On 15.5.2014 the Hon'ble CAT Principal Bench New Delhi disposed of the contempt petition No. 158/2012 directing the Union of India to implement the directions of the Tribunal expeditiously, preferably within three months" 2. SUPREME COURT HAS ALREADY ISSUED JUDGEMENT IN FAVOUR. The contempt petition CP158/2012 filed by pre-2006 pensioners, against UOI for the non-implementation of the judgement in their case OA655/2010, came up before the principal bench of CAT PB on 15/05/2014.The UOI counsel informed the court that the law ministry has advised the UOI to implement the court judgement in pre-2006 pensioners case OA655/2010. The court hence granted 3 months to UOI for implementation of the judgement. 3]Principal Bench of the Central Administrative Tribunal (vide O.A No. 655/2010). This Hon'ble Tribunal in their order dated 1.11.2011 quashed the above clarificatory order of Department of Pension & Pensioners Welfare dated 3.10.2008 and directed the respondents refix the pension of all pre 2006 retirees with effect from 1.1.2006 based on Government Resolution dated 29.8.2008. g). Government of India challenged the above decision of the said Tribunal before Delhi High Court vide WP (C) No.1535/2012 which was dismissed by the High Court vide their order dated 29.4.2013 upholding the decision of the Tribunal. Government of India then filed the following S.L. Ps etc. (i) SLP (C) No. 23055/2013 dismissed on 29.7.2013 (ii) Review Petition (C) No. 2492 / 2013 dismissed on 12.11.2013 (iii) Curative Petition (C)No. 126/2014 dismissed on 30.4.2014 Thus the CAT verdict dated 1.11.2011 attained legal finality. On 15.5.2014 the Hon'ble CAT Principal Bench New Delhi disposed of the contempt petition No. 158/2012 directing the Union of India to implement the directions of the Tribunal expeditiously, preferably within three months" 4. It will not be out of place to mention there that response to answer to Lok Sabha unstarred question No. 3406, the above directions of the CAT Principal Bench had already been implemented in respect of all pre 2006 retirees but from an arbitrarily fixed date of 24.9.2012 (vide Department of Pension & Pensioners Welfare O.M. F.No. 38/40/12- P&PW (A) dated 28.1.2013. the direction to implement it w.e.f 1.1.2006 has to be in respect of all pre 2006 retirees also. DELHI HIGH COURT DIRECTIONS Pensioners set for pay-out after Delhi High Court order By Sana Shakil Published: 00:07 GMT, 6 May 2013 | Updated: 00:07 GMT, 6 May 2013 The Delhi High Court has held that all government employees who retired before 2006 will get a revised pension according to the Sixth Central Pay Commission. Rejecting the government's plea that the pre-2006 employees would get the increased pension only from 2012, the court directed the authorities to give retired employees the increased pension from 2006 itself. The sixth pay commission, which had raised the salaries of government employees by a significant amount, was implemented in 2006. The Delhi High Court passed the judgement which will provide a huge financial windfall to former government employees The landmark judgment would almost double the pension amount of the government employees, including both Central government and state government employees. A bench of Justices Pradeep Nandrajog and V Kameswar Rao gave strict directions to the government to give the arrear to the pensioners within two months. The court said if the government fails to do so, it will have to pay the pending amount to the retired employees at a whopping interest of 9 per cent. The bench said: "Mandamus is issued to the respondents to refix the pension of the petitioners accordingly within a period of two months. In case, the arrears are not paid within a period of two months, it will also carry interest at 9% with effect from 01.03.2013." The court was hearing an appeal filed by the Central government challenging the Central Administrative Tribunal's (CAT) 2009 order which had said that government employees who retired before 2006 were also entitled to the benefits of the sixth pay commission. The CAT had passed the order on a petition filed by the Central Government Pensioners Association. While ruling in favour of the employees, the high court bench pointed out that even the government has admitted that employees who retired prior to 2006 deserved revised pension as per the sixth pay commission. The bench said: "The government of India has tacitly admitted that it was in the wrong and that the tribunal is correct. We conclude by noting that as regards the substance of the view taken by the Tribunal, even the Central Government accepts its correctness, but insists to make the same applicable prospectively." The government proposed that those employees who retired before 2006 be given revised pension from 2012 but not 2006 as pleaded by the Central Government Pensioners Association. The court, however, ruled in favour of the employees. BANKS SHOULD COMPENSATE THE PENSIONER FOR THE DELAY RBI is receiving several complaints from the pensioners alleging in ordinate delay in disbursing the revised pension and arrears. The position was reviewed by RBI and Customer Service Department. They have issued instructions to the agency banks as under:- “Pension paying banks should compensate the pensioners for the delay if any in crediting the pension/arrears there of by paying compensation at Bank Rate Plus 2% Penal Interest for the delay after the due date. automatically without waiting for any claim from them.” This is applicable to all delayed pension payment made since October, 2008. (Ref.DO.No.CSD.CO/8793/13.01.001/2009-10 dated 9th April, 2010.) RBI CIRCULAR Penal interest of 8% to be paid by Banks on delayed payment of Pension/Pension arrears-RBI Circular dated 13-04-2012 Wednesday, July 10, 2013 RBI Circular dated 13-04-2012 regarding 8% penal interest as penalty on delayed credit of pension/revised pension/arrears. RESERVE BANK OF INDIA www.rbi.org.in DGBA.GAD.No . H-6760 / 45.01.001 /2011-12 April 13, 2012 1. The Chairman / Managing Director Associate Banks of SBI 2. The Chairman and Managing Director All Nationalised Banks and ID81 Bank Ltd. 3. The Managing Director ICICI Bank Ltd., Axis Bank Ltd., HDFC Bank Ltd. Dear Sir Pension payments to Central / State Government pensioners by Agency banks - Compensation for delay Please refer to our circular DGBA.GAD.No.H-6212 / 45.01.011 / 2010-11 dated March 11, 2011, on the captioned subject, wherein we had advised the agency banks that all the pensioners, including non-State resident pensioners, would be compensated for delay in credit of pension / revised pension / arrears, for the delayed period beyond the due date at the "Bank Rate plus two per cent" penal interest. 2. Recently. the Bank Rate, which was kept unchanged at 6 per cent since April 2003, has been aligned with Marginal Standing Facility (MSF) rate and currently stands at 9.5 %. Henceforth, whenever there is an adjustment to the MSF rate, the Reserve Bank will consider and align the Bank Rate with the revised MSF rate. 3. It has now been decided todelink the penal interest levied for delayed credit of pension / revised pension / arrears, from the Bank Rate plus two per cent, and charge a fixed interest rate of 8 per cent on such delays. This rate will be subject to review by RBI as considered appropriate. 4. You may please issue suitable instructions to your concerned Regional Offices / branches authorized to disburse pension, accordingly. 5. Please acknowledge receipt. Yours faithfully, sd/- (CG. Biswal) Deputy General Manager Like