Can’t withhold pension benefits on grounds of pending Vigilance cases: Orissa High Court

The Orissa High Court has termed the withholding of pension benefits on the grounds of pending vigilance cases as ‘arbitrary and invalid’. 

The Court has directed the state authorities to release pension and gratuity of an employee who retired nearly seven years ago, within three months.

The Court gave the order while disposing of the petition of Bijaya Krishna Panigrahi who retired as assistant financial adviser-cum-under secretary in the School and Mass Education Department on December 31, 2017.

Panigrahi joined as inspector of commercial taxes under the Finance Department in 1984. Disciplinary proceedings were initiated, and two criminal cases were filed against him while he was serving as commercial tax officer in 2010. No penalty was imposed on him in the departmental proceedings. However, his retirement benefits and regular pension were withheld on the grounds of pending vigilance proceedings in 2020. Subsequently, Panigrahi sought High Court’s intervention in this regard.

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Hearing the petition, the bench of Justice S K Panigrahi said, “In the present case, the concerned authorities have withheld the petitioner’s regular pension and pensionary benefits without invoking any statutory provision. Consequently, their actions lack statutory backing.”

“Furthermore, the mere pendency of vigilance cases against the petitioner does not equate to the initiation of criminal proceedings and, therefore, cannot be used as a basis to halt the petitioner’s pension,” Justice Panigrahi ruled in his November 8 order.

A copy of the order was released on November 19. “Mere pendency of clearance from the vigilance wing cannot justify withholding the release of pensionary benefits for an indefinite period. Hence, such action can be termed as arbitrary and invalid,” the order further read.

The Court also directed the concerned authorities to determine the petitioner’s pension, accounting for any outstanding dues and applicable increments and upon finalisation, disburse the amount of regular pension, gratuity, leave encashment, and any other benefits to which the petitioner is legally entitled.