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State largesse not meant for doling out LTC for foreign trips: SC tells SBI
The Supreme Court is examining the validity of State Bank of India (SBI) allowing its officers to avail LTC for visits abroad until 2014
State largesse is not meant for doling out leave travel concession (LTC) for foreign trips, the Supreme Court has said while examining the validity of State Bank of India (SBI) allowing its officers to avail LTC for visits abroad until 2014 even as the Sixth Pay Commission (2008) rejected a similar demand of government employees.
A bench of justices Hima Kohli and Rajesh Bindal on Monday said the SBI shall place on record reasons for continuing to allow availing of LTC for foreign trips. It was hearing SBI’s challenge against a June 8 Madras high court order setting aside the bank’s 2014 notification withdrawing the facility of overseas travel under LTC. The order came on a petition of the All-India State Bank Officers Federation and All India Bank Officers’ Confederation.
Additional solicitor-general N Venkataraman, who appeared for the SBI, said that the officers cannot claim LTC for trips abroad as a matter of right citing the commission rejection.
The bench noted the commission report was released in 2008. “You slept over it for six years. Until 2014, you were flagrantly doling out state largesse to your employees for travelling abroad. Why should we not castigate you for this action?”
The commission in its 2008 report said the demand for allowing travel abroad at least once in the career under the scheme is not in consonance with its basic objective. “The government employee cannot gain any perspective of the Indian culture by travelling abroad. Besides, the attendant cost of foreign travel would also make the expenditure under this scheme much higher.”
Venkataraman argued all banks were providing this benefit.
The bench cited the disdain shown for the rules and said the facility should have stopped in 2008. “It is like the pot calling the kettle black,” the bench said. It directed SBI to provide details of the number of requests it has entertained for going abroad.
Advocate Gautam Narayan, representing the officers, told the court that the June 8 order said the Union government should have first heard the employees before withdrawing the facility. He added recovery proceedings were initiated against employees, many of whom have retired.
The bench said until further orders, the bank will not effect recovery of the amounts. It asked the bank whether it had made any payments towards LTC on foreign visits after 2014.
Venkataraman said in some of the individual cases, the employees obtained court orders where the payment was made subject to an undertaking that if the high court dismissed their petition, the entire amount would have to be refunded.
The officers said LTC on foreign visits was availed since 1982. In 2007, the federation signed a bipartite agreement with the banks which led to a revision of eligibility terms and eligible fares under LTC.
