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Oct 21, 2010

RANK PAY OFFICERS

I doubt whether you had alook at the file notings of the Defence
Secretariate file on the issue. Anyway I had a look at it. In case you
have not seen it so far, kindly go through it. If you seek
inspectionof the file under RTI Act, you will get it. Let me point out
following:

1. As per Defence Ministry's note dated 22-12-2009 the financial
implications were estimated t be Rs.433 cores without taking into
account financial implications on pensionary benefits in respect of
army and navy officers.

2. It was referredtoLegal Adviser (Def)

3. The Legal Advisor was of the opinion that review can be done on
following grounds:
(a) Discovery of new facts
(b) Mistake or errorapparenton face of ecord and
(c) Any other sufficient reason


4.It has gone to the solicitor Gemneral

5.The Joint Secretary(L) Anand Misra hadpointed out that "In view of
the huge financialimplications and importance of the case,it is
roposed to get it assessed by a High Power Committee consisting of
Defence Secretary, Secretary, Dept of Expenditure and Secreary
(Defence Finance)

6.The RM has approved consitutionof the above Committee

7. This Committee has worked out the expenditure as - Arrears on
acount of pay and pension to be around Rs.426 crores and Rs.83 crores
respectively. Interest @ 6% per annum on these arrears as ordered by
the SC to be Rs.1.114.71 crores and the total financial liaility comes
to around Rs.1,623.71 crores

8. The case was puersued purely on taking of the above
mentionedone-time financial implecation and enhanced
recuring implication.

9. In nutshell it may be seen that only the financial im0plication was
the criteria for the government to seek the review/recall and not the
merrrit of case

10 Now we should recollect following
(a) The arrears was resulted due to the misinterretation of the 4 PC
orders by the baboos
(b) The mistakes were corrected and the correction has been ratified
by the HC and SC
(c) Now the position is that the above amount is due to officers. ie.,
amount due to the employees of government. It is legally incumbant on
the employer ie., the government to pay this due to its employees.,
(d) Government cannot absolve fromthis liability on a plea that the
amount is too high.
(e) If the government is not capable of discharging its liability, it
has no choice other than declaring itself 'INSOLVANT'. After becoming
insolvant, the employees is entitled to seek their dues by REVENUE
RECOVERY.

I therefore request the concerned to bear in mind the requirement of
the government becoming INSOLVENT to escape the payment and our
entitlement to get our dues by REVENUE RECOVERY. I also request the
concerrned to impress all concerned that the intgerest of Rs.1,114.71
crores cannot be considered as the expenditure as the entitled
interest has always been morethan 6% and more than Rs.1114,71 has
already gained by government by withholding the dues from us. This is
as good as returning our DSOP deposit. This can never be considered
as an additional burden. In fact we should insist payment of interest
at market rate from 8-3-2010

Col NR Kurup (Retd)
colnrkurup@gmail.com

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