Dearness Allowance Declared Enforceable Statutory Right
In News
What Happened
Why It Matters
Background
History & Context
What Changed
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BEFORE: State governments often treated DA as a discretionary policy decision or bounty, frequently withholding or delaying it by citing budgetary deficits. NOW: DA is confirmed as a crystallized, legally enforceable statutory right under service rules, and financial constraint (paucity of funds) is no longer a valid legal defense for non-payment.
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BEFORE: The Calcutta High Court had elevated the right to receive DA to the level of a Fundamental Right under Article 21 (Right to Livelihood). NOW: The Supreme Court classified it as a statutory right under the ROPA Rules and explicitly left the question of its status as a Fundamental Right open.
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BEFORE: There was ambiguity and irregular state policy regarding the standard of DA calculation and arrears release. NOW: The Court mandated that DA must be calculated based on the All India Consumer Price Index (AICPI) and formed a committee led by former SC judge Justice Indu Malhotra to oversee the phased payment of arrears.
Prelims Angle
NCERT Connection
Practice Questions
Q1
Correct Statement(s)With reference to the Supreme Court's 2026 judgment on Dearness Allowance (DA), which of the following statements is/are correct? 1. The Supreme Court ruled that receiving Dearness Allowance is an absolute Fundamental Right under Article 21 of the Constitution. 2. The Court held that a State government cannot cite financial constraints to indefinitely withhold DA once it becomes payable under governing rules.