Transport Allowance at Other Places Rate only – Finance Ministry Clarification
Transport Allowance at Faridabad, Ghaziabad, Gurgaon, and Noida at “Other Places Rate” only – Finance Ministry Clarification
No. 21/8/2010-E.II (B)
Government of India
Ministry of Finance
Department of Expenditure
*****
North Block, New Delhi
Dated: 7th March, 2014.
OFFICEย MEMORANDUM
Subject:-ย Payment ofย Transport Allowance to Central Government Employees posted in offices located at Faridabad, Ghaziabad, Gurgaon, and Noida โ Order of Honโble Central Administrative Tribunal (CAT),ย Principalย Bench, New Delhi in O.A. No. 2080/2012 of ML Rustagi v/s Union of India & Others and 22 OAs (clubbed together) โ Matterย regarding.
The undersigned is directed to referย to Orderย dated 4th October, 2013 of Central Administrative Tribunal (CAT),Principalย Bench, New Delhi in O.A. No. 2080/2012 of ML Rustagi v/s Union of India & Others and 22 similar OAs (clubbed together) wherein Honโble CAT has directed the Ministry of Finance to re-examine the whole issue ofpayment ofย Transport Allowance to Central Government Employees posted in offices located at Faridabad, Ghaziabad, Gurgaon and Noida holistically taking into consideration its history starting from the issue of O.M. No. 21(1 )/97-E-ll (B) dated 3.10.1997, the various directions given by the Tribunal from time to time, theย argumentsadvanced by the Applicants in all the OAs forย grantย of special dispensation to satellite towns with further direction that the decision taken is to be communicated to Ministries/Departments by means of a reasoned order.
2. Accordingly, as directed by Honโble CAT, the entire matter has been re-examined ab-initio in this Ministry. It is stated that Central Government Employees posted in offices located at Faridabad, Gurgaon, Ghaziabad and Noida are eligible for Transport Allowance at rates applicable to โOther Placesโ specified in Ministry of Finance O.M. No. 21 (2)/2008-E.II(B) dated 29.08.2008 and NOT at โA-1/Aโ class cities rates for the following reasons/grounds:-
(a) The โspecial dispensationโ to certain localities, including Faridabad, Ghaziabad, Gurgaon, and Noida, in the matter ofย grantย ofย House Rentย Allowance (HRA) and City Compensatory Allowance (CCA) were allowed, as special cases, by means of separate orders issued during 1974 to 1990. The โspecial dispensation, allowedย grantย of HRA & CCA at Delhi rates to employees posted in offices located in Faridabad, Ghaziabad, Gurgaon, and Noida. However, the โspecial dispensationโ was neither based on classification of Faridabad, Ghaziabad, Gurgaon, or Noida as โA-1/Aโ Class cities nor inclusion of any of these areas into Delhi (UA) for the purpose of HRA and CCA.
(b) The special dispensation in the matter ofย grantย of HRA & CCA at rates applicable to A-1/A, Class cities to certain localities including Faridabad, Ghaziabad, Gurgaon, and Noida has beenย continuedย till date in respect of HRA and till 31.08.2008 in the respect of CCA, by making explicit provisions in the orders issued by the Ministry of Finance since 1993.
(c) The concept of Transport Allowance was introduced by the Fifth Central Pay Commission (5th CPC) to defray the cost of commuting between residence and office. The 5th CPC recommendedย grantย of Transport Allowance @ Rs.800, Rs.400 and Rs.100 p.m. for โA-1/Aโ class cities and @ Rs.400, Rs.200 and Rs.75 p.m. for remaining cities/towns to be classified as โOther Placesโ. The 5th CPC had not specified/ recommended as to what should be the basis for classification of cities/towns as โA-1/Aโ class cities or โOther Places, for the purpose of Transport Allowance. On accepting the recommendation of 5th CPC, order forย grantย of Transport Allowance was issued vide Ministry of Finance O.M. No. 21(1)/97-E-ll (B) dated 3.10.1997. Though it was decided thatย the citiesย classified as โA-1โฒ and โAโ for the purpose of CCA shall be the same forย grantย of Transport Allowance also, however, it was not decided to extend the โspecial dispensationโ granted to CCA, in respect of certain localities including Faridabad, Ghaziabad, Gurgaon and Noida, for Transport Allowance.
(d) Clarification in this regard was issued at point No.9 of Ministry of Finance O.M. No.21 (1)/97-E-ll (B) dated 22.02.2002 that the โspecial dispensationโ to some cities was extended in the case of HRA/CCA only, and that it was not applicable for Transport Allowance.
(e) The issue ofย grantย of Transport Allowance at higher rates to employees posted in offices located in Faridabad, Ghaziabad, Gurgaon and Noida were raised in various OAs filed in CAT, in particular OA No. 1270/2005 which was disposed by Order dated 18.11.2005, OA No. 483/2005 along with OA No. 1292/2005 disposed by Order dated 16.09.2005 and OA No.2263/2005 disposed by Order dated 03.01.2006. The Order of CAT dated 16.09.2005 in OA No. 483/2005 was challenged in the Delhi High Court and the matter was admitted as WP (C) No. 2600/2006 of ESIC & Others v/s Joint Action Council Speciality and Doctors wherein the Union of India is being represented through Secretary, Ministry of Labour and Employment. The Honโble High Court of Delhi is yet to decide the matter. Hence, the order of CAT allowingย grantย of Transport Allowance atโA-1/A โclass cities to employees posted in offices located at Faridabad, Ghaziabad, Gurgaon and Noida is, therefore, sub-judice.
(f) The 6th CPC while recommending CCA to be subsumed in Transport Allowance, did not recommend any special dispensation to be given to any locality in the matter ofย grantย of Transport Allowance. Orders on implementation of the recommendations of the 6th CPC were issued vide Ministry of Finance O.M. No. 21 (2)/2008-E.II (B) dated 29.08.2008 (effective from 01.09.2008) wherein higher rates of Transport Allowance were allowed to โA-1/Aโ class cities and lower rates to โOther Placesโ. The names of those 13 cities, to which higher rates of Transport Allowance is admissible, have been explicitly mentioned therein, which do not include Faridabad, Ghaziabad, Gurgaon or Noida. All cities/towns/places other than those 13 specified cities, comes under the classification of โOther placesโ for the purpose of admissibility of Transport Allowance. Moreover, Delhi (UA) classified as โA-1โ class city for CCA purpose does not include the areas of Faridabad, Ghaziabad, Gurgaon and Noida.
3. Therefore, Transport Allowance to Central Government Employees posted in offices located at Faridabad, Ghaziabad, Gurgaon and Noida should be regulated as per the rates applicable to โOther Placesโ in terms of Ministry of Finance O.M. No. 21 (2)/2008-E.ll (B) dated 29.8.2008.
Sd/-
(Subhash Chand)
Deputy Secretary to the Government of India
Download Finance Ministry Office Memorandum No. 21/8/2010-E.II (B) dated 07.03.3014
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