Clearing OROP dues in one go not feasible: Govt tells SC

Requesting the top court to modify the orders passed in March 2022 and February 2023, the Centre sought to disburse outstanding arrears to ex-servicemen in four half-yearly instalments, citing a general practice of the government to pay any arrears in instalments as a “prudent fiscal measure”.

Clearing in one go, all dues to at least 1.6 million army pensioners under the one rank, one pension (OROP) scheme may not be in the larger interest of the nation, the Union government told the Supreme Court on Monday, arguing that this could disturb allocations made for other public purposes.

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Requesting the top court to modify the orders passed in March 2022 and February 2023, the Centre sought to disburse outstanding arrears to ex-servicemen in four half-yearly instalments, citing a general practice of the government to pay any arrears in instalments as a “prudent fiscal measure”.

“Upon taking the overall stock of the position as it exists, it is apparent that the number of pensioners in whose cases appear to be dispersed is 25 lakhs ex- servicemen and the amount comes to approximately ₹28,000 crores. It is submitted that such a huge financial burden in one stroke will disturb the allocation already made for other public purposes which may not be in larger interest of the nation particularly at the fag end of the financial year 2022-23,” the government said in an application moved before the court.

The application was moved in the wake of the strictures passed by a bench headed by Chief Justice of India Dhananjaya Y Chandrachud on February 27, when the court asserted that all the arrears must be cleared by the government by March 15.

Demanding an explanation from the secretary concerned in the defence ministry, the bench , on February 27 took strong exception to a letter issued on January 20 by an officer in the concerned department of the ministry seeking to extend the March 15 timeline by making provision for the payment of arrears in four half-yearly equal instalments.

On Monday, the matter came up before bench, which also included justices PS Narasimha and JB Pardiwala, that expressed its anguish at the January 20 letter and made it clear that any request by the government on further time shall be entertained only after this letter is withdrawn.

“The ministry cannot take law in its own hands. They could not have issued a letter suo motu after we passed our orders fixing a timeline. We will ask the secretary in the defence to appear before us unless the January 20 letter is withdrawn. He must withdraw the letter before we consider this application for extension of time,” the bench told attorney general R Venkataramani, who appeared for the Centre.

Venkataramani tried to persuade the bench that there was no intention to override court orders and the letter was issued due to a misunderstanding. He pointed out that of 25 lakh pensioners, payments for more than seven lakh have already been cleared, but the task is huge, requiring a lot of calculation and provisions.

At this point, the chief justice retorted: “Our only concern is that our ex-servicemen should get paid. It is also sad that four lakh personnel died since these matters were instituted before us (in 2016)...Give us a note on the next date to show how much is left; the modalities of payment and the prioritisation of pensioners.”

As the bench fixed the matter for hearing next on March 20 since the ministry’s application was not on record, senior advocate Huzefa Ahmadi, representing the petitioner association of ex-servicemen, lamented that the central government is conveying its inability to pay the soldiers their dues while it is business as usual for every other expenditure.

“This is the fourth time such a request is being made while these ex-servicemen should have received their due in 2019 itself. Now, they want to make the payment by 2025. You don’t have money to pay these pensioners. It’s very unfair. Since the filing of the petition, four lakh of them have died. They did not get what they were entitled to during their life time,” Ahmadi, assisted by advocate Balaji Srinivasan, said.

The Centre’s application told the court that the January 20 communication was issued as per the November 2015 OROP policy which prescribed that arrears could be paid in four equal half-yearly instalments.

“It is most respectfully submitted that the communication dated January 20, 2023 was not issued with any intention even remotely to defy or disrespect or dishonour the orders and directions passed by this Hon’ble Court...there has been a general practice in the Government to pay any arrears in instalments as a prudent fiscal measure.”

The secretary in the department of ex-servicemen welfare also submitted an affidavit on Monday, submitting that the letter was issued in terms of the 2015 policy and that the government should be allowed to make the payment in instalments.

By its March 2022 judgment, the top court affirmed the Centre’s November 7, 2015, notification on OROP. The scheme had to be implemented with effect from July 2014 and envisaged a revision every five years.

In December, the Union cabinet headed by Prime Minister Narendra Modi approved the revision of pension of ex-servicemen and family pensioners under the OROP scheme, with effect from July 01, 2019, with arrears to be paid for the period July 2019 to June 2022.

In a media briefing, information and broadcasting minister Anurag Thakur announced on December 23 that the move would benefit more than 2.5 million defence pensioners who would be paid arrears amounting to ₹23,638 crore.

The arrears were to be paid in four half-yearly instalments to veterans, except family pensioners and gallantry awardees, who will get their dues in a single instalment, HT reported on December 24.