The Delhi High Court emphasized that the MCD (Municipal Corporation of Delhi) is responsible for disbursing salaries, pensions, and outstanding payments to its employees, and failure to do so will result in consequences.
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The Delhi High Court has put the Municipal Corporation of Delhi (MCD) on notice over its persistent failure to disburse salaries and pensions to its employees. The court’s message was clear and foreboding: rectify the financial mismanagement or face the possibility of being dissolved.
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A Division Bench, led by Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora, expressed profound frustration over the prolonged delay in resolving this issue, which has now dragged on for four years. The justices articulated a sense of exasperation with the MCD’s inability to stabilize its finances, emphasizing the critical nature of the situation.
“This matter is dragging on for four years. We are waiting for one good day when you will augment your finances. We are giving you the last opportunity. You fix your house. Put it in order. Otherwise, we will say this is a fit case where municipalities need to be winded up,”
-the Court remarked.
The bench did not mince words in highlighting the gravity of the situation and the potential consequences of continued inaction. It was made abundantly clear that the obligation to pay wages, pensions, and arrears as mandated by the seventh pay commission is not just a moral duty but a statutory requirement.
The court’s patience has worn thin, signaling that the time for excuses has passed.
“This court has made it clear that it is not going to wait for MCD to find ways and means to augment its resources. The liability to pay wages as per the seventh pay commission is a statutory obligation. If the MCD is not in a position to pay the basic wages then consequences will follow,”
-the Court stated.
This ultimatum from the Delhi High Court serves as a critical juncture for the MCD, highlighting the imperative need for immediate and effective financial reform within the municipal corporation. The court’s intervention underscores a broader issue of governance and accountability, emphasizing the essential rights of employees to receive their due wages and pensions.
As the situation unfolds, the MCD is under immense pressure to demonstrate its commitment to its employees and to the financial stability of the institution, or else face the unprecedented prospect of being wound up.
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