OROP-2 ARREARS 2019 BE INDEXED WITH CII FOR MAR 2023

[BRIG NK DHAND, Veteran]

Dear Veterans,

 

   By now we all know from various social media posts that MoD has filed petition in the HSC requesting to extend the payment dates of the arrears of OROP-2 upto Mar 2003 citing difficulty in drawing out the revised tables for the OROP Review.

   ESMs have also demanded that arrears should be paid with 8% interest. In this connection We had proposed several times that all kinds of arrears be paid to the Govt servants taking into account the Cost Inflation Index which is officially announced by the Finance Department every year.

   Most of us, are aware of the Long Term Capital Gains (LTCG) that  enjoys indexation benefit. In order to arriving at the indexed cost of the value of arrears pertaining to Jun 2019 as on Mar 2023, one needs to multiply the arrears as due in Jun 2019 with value of CII for  2022-23 (331) divided by the value of CII for 2019-20 (289). This will give the Fair Value of the past arrears at the time pf payment. In simple terms it means that Rs 289 in 2019-20 becomes Rs 331 in 2022-23. The delay factor in payment is a clear loss to the ESMs

     By indexing, an arrears of Rs 1000 in JUN 2019 thus becomes =  1000 multiply 331 divide 289 = Rs 1145. This is the official method laid down by the Finance Department for the calculations in deciding the LTCG while charging the income tax. If this argument is put up to the HSC the Govt cannot call it arbitrary where  as 8% interest is easily contestable.

      For consideration of the ESM Organisations

 

With Best Wishes

 

ब्रिगेडियर नरेन्द्र ढंड
Brig Narinder Dhand
Founder & Convener
Veterans’ Web Portals,
https://signalsfamily.blogspot.com

https://biggerfamly.blogspot.com
Information Empowerment.

 

[BRIG NARINDER DHAND]

Dear Col Vijaya,

1.  Thanks for your mail.

2,   Some one has to do it first to set the precedence for future, the bureoucracy always look for precedence to cover themselves up, however in our country the court comes to the help of ctzs to set the precedence.

3. I have thus suggested to ESM orgs who will contest the writ petition of the govt for extn, to ask for indexing of the arrears as is being officially followed by the GoI Fin Dept for Calc of Income tax.

4. I have no means to appch the court with PIL on this as such am limited to only a suggestion for the elites among the veterans and ESM organisations like IESM and TSEWA to set the ball rolling for the good of ESMs and other Govt Servants.

Best wishes.

ब्रिगेडियर नरेन्द्र ढंड
Brig Narinder Dhand
Founder & Convener

Vereran's Web Portals,
http://signalsfamily.blogspot.com
Information Empowerment.

On Sat, 17 Dec, 2022, 8:02 am Vijaya Kumar, <col.vija...@gmail.com> wrote:

Sir, 

You rightly said, our claim for arrears should be keeping in mind the point you said. But, I don't know if there is any such precedence existing earlier in which the applicants claimed for long pending arrears from the Government using your formula.

Apart from the above, I also heard that Government is not keen to roll out arrears even on 15 Mar 23. They are planning to file another MA requesting for court orders to pay arrears in instalments instead of paying in one go. 

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