On this Special Report, legal correspondent Anisha Mathur details a significant legal setback for the Mamata Banerjee-led West Bengal government. The Supreme Court has directed the state to pay inflation-linked Dearness Allowance (DA) arrears to its employees for the period between 2008 and 2019. Anisha Mathur noted, ‘The court has given a deadline of 31st March to pay the first tranche of the arrears that have to be paid.’ The apex court rejected the state’s argument regarding financial constraints and its own calculation methods, ruling that All India Consumer Price Index-linked rates must apply. To oversee the process, the court has established a three-member committee led by a retired Supreme Court judge and a senior CAG official. This judgment brings relief to thousands of state employees who have fought a long-standing battle for their dues, while setting a precedent for other states regarding the application of central norms for dearness allowance calculations.
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