Today, the Delhi High Court strongly criticized the Municipal Corporation of Delhi (MCD) for its failure to fulfill its financial obligations towards its current and former employees, including the payment of salaries, pensions, and arrears

A Division Bench consisting of Acting Chief Justice Manmohan and Justice Manmeet Pritam Singh Arora stated that the salaries, pensions, and arrears owed to the employees are fundamental payments, and if the Municipal Corporation of Delhi (MCD) continues to neglect its responsibility, the Court may contemplate issuing an order for the dissolution of the municipal corporation.

In its order, the bench emphasized that the obligation to fulfill payments such as wages, pensions, and arrears in accordance with the seventh pay commission is a statutory duty. The bench warned that if the Municipal Corporation of Delhi (MCD) fails to meet this obligation, there will be consequences.

MCD Standing Counsel Divya Prakash Pande provided assurance to the Court that the salaries and pensions of the employees would be disbursed within a span of 10 days. Pande also mentioned that he would seek guidance regarding the matter of outstanding arrears. He clarified that the MCD has been actively addressing the issue of pending payments, noting that the total amount owed in arrears had reduced from nearly ₹1,000 crore to ₹400 crore through ongoing efforts.

The Court recorded the submissions and adjourned the matter.

The court was reviewing approximately six petitions related to the delayed payment of salaries, pensions, and arrears to MCD employees, in accordance with the seventh pay commission's recommendations.

Advocate Satyakam, representing the Delhi government, informed the Court that on January 24, the Delhi government had approved and disbursed ₹803 crore for the Municipal Corporation of Delhi (MCD), with the amount subsequently deposited into the municipal corporations' account.