Supreme Court Rebukes West Bengal Over Unpaid DA Arrears; Questions State's Consistency and Intent

KalimNews, Kolkata, August 7, 2025 : In a significant development concerning the long-pending issue of Dearness Allowance (DA) arrears for West Bengal government employees, the Supreme Court has once again pulled up the state government for failing to comply with its directives. The apex court had earlier ordered the state to clear 25% of the outstanding DA and allotted a six-week deadline for the same. However, the West Bengal government failed to meet the deadline and subsequently sought an additional six-month extension, triggering daily hearings on the matter since Monday.

During Thursday’s hearing, a division bench comprising Justice Sanjiv Khanna and Justice P.K. Mishra questioned the state government’s inconsistent stand on the issue. The bench accused the government of deliberately creating confusion to derive benefit from it. The judges reminded the state that it had, on record, agreed to implement the DA based on the provisions of the ROPA (Revision of Pay and Allowances) Act and had promised to disburse the arrears as well. The Supreme Court stressed that the state is bound by the same and cannot now renege on its commitment.

At the outset of the hearing, senior advocate Karuna Nundy, representing the petitioners, argued that the state’s refusal to follow the All India Consumer Price Index (AICPI) to determine DA was invalid. She cited the example of Kerala, which, despite not adhering to the AICPI, had continued to pay regular DA to its employees. This, she stated, proves that disbursing DA is mandatory, irrespective of the central index. Nundy further emphasized the scientific validity of the AICPI, which is formulated by the Labour Bureau, and noted that West Bengal lacks any separate index for its employees. She accused the state of failing to adhere even to its own declared standards.

Another advocate for the petitioners, Rouf Rahim, accused the state government of arbitrarily disbursing DA without any fixed policy or guiding principles.

In response, senior advocate Shyam Divan, representing the West Bengal government, defended the administration’s position by stating that inflation and budgetary constraints had been duly considered before deciding on DA disbursement. He added that the policy on DA varied between the central and state governments, and since it pertains to state employees, the state retains the authority to determine the mode and method of DA calculation and distribution.

However, Justice Sanjay Karol expressed dissatisfaction with the state’s defense, warning that such unilateral decision-making could amount to "arbitrariness." Justice P.K. Mishra further remarked that the state was intentionally creating confusion in order to exploit legal loopholes, undermining both judicial direction and employee rights.

The Supreme Court has scheduled the next hearing of the case for the coming Tuesday, keeping the pressure on the state government to provide clarity and accountability regarding the unpaid DA arrears.