NEW DELHI: The Supreme Court on Tuesday imposed a fine of Rs 2 lakh on the Centre for delaying a decision on the pension payable to retired regular captains of the Army under the One Rank One Pension (OROP) scheme. The court directed the Centre to resolve the issue by November 14 or face a 10 per cent enhancement in the pensions.
A bench of Justices Sanjiv Khanna and R. Mahadevan gave the Centre this final deadline to address the anomalies related to the pensions and scheduled a further hearing for November 25. The bench specified that the Rs 2 lakh fine should be deposited in the welfare funds of the Army. If the Centre fails to act by the deadline, the court will order a 10 per cent increase in the pensions of the retired captains.
Additional solicitor general Aishwarya Bhatti explained that six anomalies identified by the Kochi bench of the Armed Forces Tribunal (AFT) need rectification, but the government has not yet decided on the matter. The Supreme Court expressed frustration over the prolonged delay since the issue was raised in 2021.
The bench emphasised that the decision should not be further delayed. Justice Khanna stated that the government must either start paying the enhanced pension or pay the imposed cost. When the bench began dictating the order for the enhanced pension, the ASG requested a fine instead, stating it would serve equity better. Consequently, the court granted the Centre time until November 14 as a last opportunity, accompanied by the Rs 2 lakh fine.
On July 23, the Supreme Court noted that the AFT had ordered the government on December 7, 2021, to resolve the pension anomaly for retired regular captains under the OROP scheme. Despite multiple adjournments, the government had not yet made a decision. The court had previously warned of imposing exemplary costs and directing a 20 per cent pension increase from the date OROP was applicable if no decision was made.
The OROP scheme, introduced in 2015, aims to equalise the pension rates for past and current retirees of the armed forces. However, anomalies in the pension tables for captains and majors arose due to inadequate data on officers in these ranks. In 2016, the defence ministry appointed a One Man Judicial Committee (OMJC) to recommend solutions, but no decision was taken. The Kochi bench of the AFT later directed the ministry to resolve the anomaly based on the OMJC's recommendations, prompting the Centre to challenge the AFT order in the Supreme Court, involving 13 retired regular captains.
