HC Shocks AP: Tells To Pay With Interests

Andhra Pradesh state government has received yet another shocker from the High Court. AP High Court has directed the state government to clear the pending salaries and pensions to the government employees and retired employees. The court asked the government to pay employees and pensioners with an interest of 12 percent for deferring the salaries and pensions. HC’s direction to the state government is seen as a big blow.

The High Court has also struck down the previous GO issued by AP government that allowed to pay only 50 percent of salaries and pensions to the state government employees and pensioners during the lockdown in Covid-19 crisis. Responding to a petition filed by the retired justice from Visakhapatnam Kameswari, AP High Court has struck down the GO Ms No. 26 and made above directions to the government to clear dues with interests.

AP government’s move had come in to avoid additional burden on the exchequer when its revenues dried up due to the imposed lockdown in March and April, 2020. As per the GO, 50 percent salaries and pensions were only paid to state government employees and retired employees. Now that the HC has struck down AP Govt’s GO and asked to clear the pending salaries and pensions with a 12 percent interest, it needs to be seen how AP government is going to respond.