Supreme Court slams Centre over delays in OROP pension decision, imposes Rs 2 lakh fine

New Delhi: The Supreme Court issued a stern reprimand to the Centre on Tuesday for its prolonged inaction regarding the pension entitlements of retired regular captains under the One Rank One Pension (OROP) scheme. The court also imposed a fine of Rs 2 lakh on the government for its failure to address the issue in a timely manner.

A bench comprising Justices Sanjiv Khanna and R. Mahadevan gave the Centre a final deadline of November 14 to rectify the anomalies related to the pensions of these retired officers under the OROP scheme. The court specified that the Rs 2 lakh fine must be deposited into the Army welfare funds and warned that if the government fails to resolve the issues by the given date, it will direct an increase in the pension by 10 percent for the retired captains. The case is scheduled for further hearing on November 25.

During the proceedings, Additional Solicitor General Aishwarya Bhatti, representing the Centre, acknowledged that the Kochi bench of the Armed Forces Tribunal (AFT) had identified six anomalies that need to be addressed. However, the government has yet to make a decision on the matter. The bench expressed frustration over the government's inaction, questioning how long the issue would remain unresolved. 

Justice Khanna remarked, “For how many years will this go on? Either you pay an enhanced pension by 10 percent or we are imposing a cost on you. We wanted a decision to be taken, but you have not taken it. This matter came up in 2021 but still no decision has been taken.” 

Bhatti responded that the government could not make a piecemeal decision and needed to address all six anomalies comprehensively, as the resolution might affect other aspects of pension disbursement. “All I can do is tender my apology. Please give us one more chance, we will take a decision in this regard. We will file an affidavit in this regard. Give us three months' time, we will make a decision,” Bhatti said.

Initially, the bench was reluctant to grant additional time or accept any affidavit, indicating that it might order an enhanced pension directly for the retired captains. Justice Khanna emphasised, “What is this? If the government is not taking a decision, I cannot do anything. This does not give solace to these officers. They are retired captains. They have no say. They have no access to you people. Either you start paying 10 percent more or pay the cost. The choice is yours.”

As the bench began dictating an order for the pension enhancement, Bhatti requested the court to impose a cost instead, arguing that it would serve equity better than an increased pension. The bench ultimately granted the government until November 14 as a last opportunity but imposed a fine of Rs 2 lakh to be deposited in the armed forces’ welfare fund within four weeks.

On July 23, the Supreme Court had noted that the AFT's regional bench had issued an order on December 7, 2021, directing the government to address the pension anomalies for retired regular captains. The AFT had identified discrepancies requiring resolution for proper implementation of the OROP scheme. The Centre challenged this AFT order and included 13 retired regular captains as parties to the dispute.

The Supreme Court highlighted that despite repeated adjournments to allow the government time to resolve the pension issues, there has been no substantial progress. The court had earlier indicated its inclination to impose exemplary costs and direct a 20 percent pension increase from the date the OROP scheme became applicable. However, it also provided the government with a final opportunity to obtain instructions and re-listed the matter for further hearing on July 30.

The root of the dispute lies in the OROP scheme, introduced by the Centre in 2015. The scheme was designed to align the pensions of past retirees with those of current retirees in the armed forces. However, anomalies arose in the pension tables for captains and majors due to inadequate data regarding the ranks of regular captains and majors. The minimum current rank for pensionable service is lieutenant colonel, which complicated the pension calculations.

In 2016, the Ministry of Defence appointed a One Man Judicial Committee (OMJC) to recommend solutions for these anomalies. Despite the OMJC's recommendations, no decision was made by the ministry. The Kochi Bench of the AFT subsequently directed the ministry to resolve the anomalies based on the OMJC's recommendations within a specified timeframe. The Centre's challenge of the AFT's order brought the matter before the Supreme Court. PTI