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October 1, 2011

House Rent Allowance not a right, merely a compensation: HC

Rajesh Kumawat | 20:14 | | Best Blogger Tips

The HC has ruled that house rent allowance (HRA) is not a right. A division bench of Justice B P Dharmadhikari and Justice A P Bhangale ruled that a government employee not staying in the quarters despite its availability can be disentitled from claiming the special allowance. The bench was hearing a petition filed by the defence ministry against its employees working in the ordinance factory in Nagpur, who were staying in their own accommodation.

Nagpur has surplus government accommodation and is one of the few cities where a central government employee, who lives in his own house has to submit a "non-availability certificate" before he can ask for HRA. The government claimed that its employees, who are offered accommodation but refuse to occupy the same, would not be entitled to HRA.
"HRA is not a matter of right, it is a compensatory allowance given by an employer towards the rental accommodation expenses when the government is unable to provide suitable accommodation to its employee," said the judges. "The employee, if he resides in his own property, may not be entitled to claim the HRA, because it is paid to central government employees to compensate them partly for the especially higher rents which they have to pay for hired or rented residential accommodation in big cities, but not as a source of profit," they added.


HRA not a right but a compensatory allowance: HC 


A government employee is not entitled to claim house rent allowance (HRA) as a matter of right, the Delhi High Court has held, saying that it is compensatory allowance paid in exchange of accommodation facilities.

"HRA is not a part of pay but is a compensatory allowance in lieu of accommodation... and is not to be used as a source of profit. The moment the amenity is provided or offered, the employees should cease to be in receipt of the compensation which is given for want of it," Justice Rajiv Sahai Endlaw said in a recent judgement.
The High Court passed the order on a petition of MCD challenging the order of an Industrial Tribunal to pay HRA to its employees even though they were residing illegally in the premises owned by the civic body.

Illegal occupant of govt premises not entitled to HRA: HC

The Delhi High Court has held that an employee in unauthorised occupation of the premises of the employer is not entitled to house rent allowance(HRA).
"If the employees inspite of unauthorisedly occupying the accommodation of the employer are also held entitled to HRA, it would tantamount to allowing them to profiteer from the same which is not permissible," Justice Rajiv Sahai Endlaw said.
The Court passed the order on a petition filed by Municipal Corporation of Delhi (MCD) challenging the order of the Industrial Tribunal directing it to pay arrears of HRA to the employees from the date of their employment even though they were living unauthorisedly within the premises owned by the civic body.


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