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MCD to disburse Rs 15 crore monthly for pensioners’ arrears

The Municipal Corporation of Delhi (MCD) has taken the decision to allocate Rs 15 crore monthly to address the pending arrears of its pensioners, aligning with the seventh Central Pay Commission’s recommendations. This move aims to clear the long-overdue dues of pensioners, some of whom have been awaiting payment for more than seven years. The decision comes following scrutiny from the Delhi High Court, which recently criticized the MCD for its failure to pay salaries and pensions to municipal staff and retirees, issuing a directive to settle February’s dues within 10 days.

In response to the court’s admonishment, the MCD has initiated the process by issuing an official order to disburse the first installment of pending arrears to pensioners. The order, issued by the finance, accounting, and planning department of the MCD on March 6, authorizes the release of Rs 15 crore monthly for the seventh CPC arrears of pensioners, urging compliance with the established rules for payment.

According to the MCD’s legal counsel, the corporation carries a liability of Rs 403 crore in unpaid salaries and pensions. However, they informed the court that only a few employees’ dues remain outstanding. The MCD has already received financial assistance totaling Rs 803.69 crore from the Delhi government. Earlier warnings from the Delhi High Court have emphasized the urgency for the MCD to enhance its financial capabilities to settle outstanding dues, indicating potential dissolution if the corporation fails to meet its obligations.

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