Today, On 30th July, The Supreme Court criticized the Centre for delays in addressing pension discrepancies for retired Army captains under the One Rank One Pension (OROP) scheme, imposing a fine of Rs 2 lakh. The Court set a final deadline of November 14 to resolve the issues, warning of a 10% pension increase if the deadline is missed. The next hearing is scheduled for November 25.
New Delhi: The Supreme Court, On Tuesday, issued a strong rebuke to the Centre for its prolonged inaction on determining the pension amounts for retired regular Army captains under the One Rank One Pension (OROP) scheme. The court imposed a Rs 2 lakh fine on the government for the delay.
Justices Sanjiv Khanna and R Mahadevan, who presided over the bench, granted the Centre a final deadline of November 14 to address the pension discrepancies for these retired officers.
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The court mandated that the Rs 2 lakh fine be paid into the Army’s welfare funds and cautioned the government that failure to resolve the issue by the given date would result in a directive for a 10 percent increase in the pensions of the affected retired captains.
The case scheduled for further proceedings on November 25.
Appearing in court on behalf of the Centre, Additional Solicitor General Aishwarya Bhatti acknowledged six anomalies identified by the Kochi bench of the Armed Forces Tribunal (AFT) that need correction. However, the government has not yet taken a stance on the issue.
The bench expressed frustration, stating,
“For how many years will this go on? Either you pay an enhanced pension by 10 per cent or we are imposing a cost on you. We wanted a decision to be taken, but you have not taken it. This matter came up in 2021 but still no decision has been taken.”
Bhatti explained that the government needs a comprehensive approach and can’t address the anomalies individually, as the decision could impact others.
She added,
“All I can do is tender my apology. Please give us one more chance, we will take a decision in this regard. We will file an affidavit in this regard. Give us three months’ time, we will take a decision.”
Initially, the bench unwilling to grant more time or accept an affidavit, and was ready to order an enhanced pension for the retired officers.
Justice Khanna remarked,
“What is this? If the government is not taking a decision, I cannot do anything. This does not give solace to these officers. They are retired captains. They have no say. They have no access to you people. Either you start paying 10 per cent more or pay the cost. The choice is yours.”
As the bench began dictating the order for the enhanced pension, Bhatti requested the bench to impose a cost instead, stating it would serve equity better than an enhanced pension. The bench then allowed the government time until November 14 as a final chance, but imposed a Rs 2 lakh cost, to be deposited in the welfare fund of the armed forces within four weeks.
On July 23, the top court noted that the AFT’s regional bench had issued an order on December 7, 2021, requiring the government to resolve a pension anomaly affecting retired regular captains, as part of the One Rank One Pension (OROP) scheme. The Centre challenged this order and included 13 retired regular captains in the dispute.
The court previously adjourned the matter several times to allow the government to make a decision on the pension.
The bench stated in its July 23 order,
“In these circumstances, we are inclined to impose exemplary costs and also direct that the regular captains will get pension enhanced by 20 per cent from the date the OROP scheme is applicable. However, as a last opportunity to enable the appellant to obtain instructions, re-list on July 30,”
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The dispute originates from the OROP scheme introduced by the Centre in 2015, which aimed to align pension rates for past retirees with current retirees of the armed forces. Anomalies arose in the pension tables for captains and majors due to insufficient data, as the minimum retirement rank for pensionable service is lieutenant colonel.
In 2016, the Ministry of Defence appointed a One Man Judicial Committee (OMJC) to address these anomalies, but no decision made. Subsequently, the Kochi Bench of the AFT ordered the ministry to resolve the issue based on the OMJC’s recommendations, leading to the Centre’s challenge in the Supreme Court.