HRA is not for profit: HC

A government employee is not entitled to claim HRA as a matter of right,the Delhi High Court has held.

A government employee is not entitled to claim house rent allowance (HRA) as a matter of right,the Delhi High Court has held,saying that it is compensatory allowance paid in exchange of accommodation facilities.

“HRA is not a part of pay but is a compensatory allowance in lieu of accommodation… and is not to be used as a source of profit. The moment the amenity is provided or offered,the employees should cease to be in receipt of the compensation which is given for want of it,” Justice Rajiv Sahai Endlaw said in a recent judgement.

The High Court passed the order on a petition of MCD challenging the order of an Industrial Tribunal to pay HRA to its employees even though they were residing illegally in the premises owned by the civic body.

Story continues below this ad

Justice Endlaw said that HRA is not a part of salary but is a compensatory allowance which is paid in lieu of accommodation and is not to be used as a source of profit.

He also said that earlier the apex court had also set aside the Central Administrative Tribunal’s order which had held that HRA is a part of wages.

Highlighting the challenges faced by the government in providing accommodation facilities to its employees in view of acute shortages of such facilities,the court said that the employer should not be overburdened.

“Whenever accommodation is offered to the employees,the employees have either to accept it or to forfeit the HRA and the management cannot be saddled with double liability viz to construct and maintain the quarters as well as to pay the HRA,” it said.

Story continues below this ad

It also allowed the civic body to evict the erring employees from the premises or recover rent or damages for use of accommodation if it was found to be in excess of the HRA entitlement under the law.

Tags:
delhi high court

Premji said that Wipro would partner with the Government "to find a lasting solution for Bengaluru's mobility challenges".

Wipro rejects Karnataka Govt request to allow public vehicles inside Sarjapur campus

Cities2 hr ago

Wipro, a leading company in Bengaluru, has refused to allow public vehicles inside its Sarjapur campus to ease traffic congestion. However, they have agreed to finance a study to find a solution for the traffic problem. The founder, Azim Premji, believes that the issue is complex and requires expert analysis. Wipro has also committed to funding a significant portion of the study's cost.

View all shorts

Live Blog

PHOTOS