CH MAHADEVAN'S RESPONSE...

Dear Mr Gangadharan,

I give below my comments in response to the comments

of Mr GNSridharan & Mr. Lakshminarayanan on the limited 

issue whether LIC Board resolution covers upgradation 

and also the extended DR anomaly before 1/8/1997 

dating back to 1/11/1993.

Kind regards.

C.H.Mahadevan

I am not inclined to agree that the LIC Board resolution of 24/11/2001 only recommends removal of DR anomaly. One has to read between the lines and also the forwarding letter of the then ED(P)s letter dt 31/12/2001 to the then Joint Secretary( Insurance) where in it has been made clear as follows:- 

• 3.Besides this item, the matter of upgradation of basic pension to AICPI 1740 points and 100% DA neutralization thereon in respect of employees of the Corporation, who have retired on or after the 1st day of January,1986 but on or before the 31st day of July 1997 was also under our consideration. In this connection, we would like to draw your kind attention to our letter dated 29th August 2001,Ref:Per/ER/A/G/345/GovtV/MMS(copy enclosed),wherein it was mentioned that there is an urgent need to rationalize the Dearness Relief structure available to different groups of pensioners. It was also mentioned in the aforesaid communication that for this purpose, upgrading the pensions linked to 600 points of index and 1148 points of index to 1740 points of index and payment of Dearness Relief on the pension so upgraded at the rate of 0.23% for every four points of index were being considered and the approval of the Board shall be sought for this purpose shortly.
• 4. This matter was also put up to the Board for its approval in the aforesaid meeting. The Board has approved the proposal as contained in the Board note and has suggested that the matter shall be given a prospective effect after seeking the approval of the Government.

It is worth noting at this juncture that on the date of the said Board resolution only the then latest wage revision as at 1/8/1997 was in vogue. When we extend the principle adopted by Board resolution and lucidly clarified by the ED (P) in his letter dt 31/12/2001, it goes without saying that upgradation of pension has to be adopted from the date of every future wage revision. Even Delhi HC in its judgment dt 30th January 2013 has allowed the petition only making its order dependent on the outcome of the SLP pending before the Supreme Court. My view is that the Delhi HC judgment implies that the issue of DR anomaly cannot be segregated from the issue of upgradation of pension. If it was segregable, the Delhi HC would have allowed the petition without any riders.   Please click on 'read more' below.

Another fundamental point I want to bring to the notice of Mr G.N.Sridharan is that our approach while filing cases in HCs for removal of DR anomaly is flawed for the simple reason that these writs focus only the effect of DR anomaly from 1/8/1997. When we go deeper into the DR formula from 1/11/1993, it will be clear that DR anomalies have been created even from 1/11/1993 on account of differential slabs for in-service employees and pensioners retired before 1/8/1987, while the slab percentage is uniform for post July 1997 retirees and in-service employees.  This has amply come out by implication in the SC order of 17/10/2012 where in their clarificatory order they have stated that the contempt proceedings are stayed subject to LIC depositing in the Jaipur HC Registry the benefits due to the petitioners for which they were entitled from the date of retirement&&&..

So even in respect of taking up the resolution of DR anomaly, the DR anomaly removal for the period from 1/11/1993 to 31/7/1997 has been given a go bye in the writ petitions filed in Delhi & Kerala.I am not aware what are the grounds submitted in the latest writ petition No 10570 of 2013 by three pre Aug 1997 retirees in the absence of circulation of the CWP. If this CWP also has omitted the case for entitlement of benefits from 1/11/1993, then it would mean that legal and legitimate entitlement of Pre Aug 1997 retirees for the full period of anomaly has been allowed to go by default.