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).

Last Updated: Jun 15, 2010, 16:18 PM IST

New Delhi: 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.

While declining the plea of the employees, the court
said HRA is not a part of salary but is a compensatory
allowance paid in lieu of accommodation and is not to be used
as a source of profit.

Interpreting the law applicable to government servants
with respect to HRA, the court said, "HRA is not payable...if
the government servant shares government accommodation
allotted rent-free to another government servant or if the
government servant resides in accommodation allotted to
his/her parents/son/daughter by the central government, state
government or if the spouse has been allotted accommodation at
the same station."

It also allowed the MCD to evict the erring employees
from the premises or recover rent or damages for use of
accommodation if found out to be in excess of the HRA
entitlement under the law.

PTI