States » NorthPosted at: Nov 2 2026 6:08PM


Punjab Govt admits Rs 32,418 crore liability towards employees, pensioners in High Court

Neeraj Bali
Chandigarh, Nov 2 (UNI) The Punjab government has admitted before the Punjab and Haryana High Court that its outstanding liabilities towards employees and pensioners have mounted to Rs 32,418 crore, including Rs 22,818 crore in unpaid dearness allowance (DA) and dearness relief (DR), exposing the scale of the financial burden facing the Bhagwant Mann administration.
In a status report submitted to the High Court, Chief Secretary K A P Sinha acknowledged that the government remained legally bound to clear the arrears along with 6 per cent annual interest, as directed by the court on August 3.
"The total pending liability on account of both claims is approximately Rs 32,418 crore," Sinha said in the report.
The government estimated that DA and DR arrears accumulated between July 1, 2021, and September 30, 2026, alone amounted to Rs 22,818 crore.
The disclosure comes as the state continues to contest the High Court's directions before the Supreme Court, which has not stayed the August 3 judgment.
According to the affidavit, bringing DA payments on a par with Central government rates would impose an additional recurring burden of approximately Rs 4,712 crore annually on the state exchequer.
Punjab's expenditure on salaries and pensions stood at nearly Rs 58,064 crore under the revised estimates for the 2025-26 financial year, the Chief Secretary informed the court.
The government acknowledged that clearing the outstanding dues would require appropriate budgetary provisions.
The High Court had directed the government to pay the pending amounts and imposed simple interest at 6 per cent per annum on sums remaining unpaid after the stipulated deadline.
The state accepted that the judgment remained binding in the absence of any stay from the Supreme Court.
In its report, the government also detailed the steps taken to revise DA rates.
It said Chief Minister Bhagwant Mann chaired a meeting on September 18 to discuss the demands of employees and pensioners, following which the government decided to increase DA by 8 percentage points.
The Finance Department subsequently issued notifications on September 23, raising the rate from 42 per cent to 50 per cent with effect from September 1, 2026.
The revised allowance was included in September salaries and pensions disbursed in October.
However, the increase did not settle the government's accumulated arrears liability.
The state challenged the High Court's August 3 judgment through a special leave petition filed in the Supreme Court on September 1. The petition was refiled on October 1 after the Supreme Court Registry identified procedural defects.
Defending the delay in payment, the government argued that its failure to meet the deadline should not be treated as deliberate or wilful disobedience of judicial directions.
"The State acted bona fide throughout," the status report said.
The government maintained that it was pursuing its legal remedies while recognising its obligation to pay the outstanding amounts with interest.
The Chief Secretary also assured the High Court that the administration had no intention of undermining its authority and remained bound by its directions unless modified or stayed by a higher court.
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Tags: #Punjab Govt admits Rs 32#418 crore liability towards employees# pensioners in High Court
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