CALCULATE YOUR SIP RETURNS

More Time to Get DA? West Bengal Urges Extension as Financial Crunch Delays Dues

Written by: Team Angel OneUpdated on: 30 Jun 2025, 8:41 pm IST
WB govt asks SC for 6-month extension to pay ₹10,468 crore DA dues amid severe financial crisis, agrees to deposit in court.
More Time to Get DA? West Bengal Urges Extension as Financial Crunch Delays Dues
ShareShare on 1Share on 2Share on 3Share on 4Share on 5

According to reports, the West Bengal government has requested a 6-month extension from the Supreme Court to clear 25% of the dearness allowance (DA) arrears owed to its employees. Citing a financial crisis, the government has indicated its willingness to deposit the dues amounting to ₹10,468 crore with the apex court directly, as per news reports.

State Appeals for More Time to Pay ₹10,468 Crore amid Financial Strain

On June 27, 2025, the 6-week deadline set by the Supreme Court expired, compelling the West Bengal government to file a fresh application. The court had earlier directed the state to clear 25% of the total DA arrears from 2009 to 2019, which total ₹41,871 crore. The 25% portion alone stands at ₹10,468 crore, a sum the state claims it is currently unable to pay due to budgetary constraints. Consequently, it sought a 6-month extension and has also proposed depositing the amount with the court.

Disparity in DA Rates Between State and Central Employees

The DA disbursed to West Bengal state employees remains significantly lower compared to their counterparts in the central government. As of now, state employees receive DA at 18%, while central government employees receive 55%. This disparity has led to widespread dissatisfaction among employees, culminating in legal action led by the Confederation of State Government Employees.

Supreme Court’s Stand and Government’s Review Petition

Back on May 16, 2025, the Supreme Court issued an interim order requiring the state government to release 25% of DA arrears within 6 weeks. The latest filing includes a review petition of that order, alongside the request for an extension. The case is now scheduled for hearing again in August. The proposal to deposit the dues amount directly with the court may be an attempt to demonstrate the government’s intent to comply with judicial directives.

Read More: West Bengal Sanctions 20 Acres to TCS for New Campus, Eyes 25,000 Job Creation!

Employee Associations Warn of Contempt Proceeding

Responding to the state’s application, Malay Mukherjee of the Confederation of State Government Employees noted that a legal notice had already been sent to the Chief Secretary. The association has warned it will initiate contempt proceedings in the Supreme Court if the state fails to meet its obligations. This development adds further legal pressure on the administration as tensions rise regarding unresolved employee dues.

Conclusion

The West Bengal government’s inability to pay ₹10,468 crore in DA arrears within the given deadline has led to a judicial standoff. By seeking a 6-month extension and offering to deposit the amount with the Supreme Court, the state is attempting to manage compliance while navigating an economic challenge. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities are subject to market risks. Read all related documents carefully before investing.

Published on: Jun 30, 2025, 3:11 PM IST

Team Angel One

Team Angel One is a group of experienced financial writers that deliver insightful articles on the stock market, IPO, economy, personal finance, commodities and related categories.

Know More

We're Live on WhatsApp! Join our channel for market insights & updates

Open Free Demat Account!

Join our 3 Cr+ happy customers

+91
Enjoy Zero Brokerage on Equity Delivery
4.4 Cr+DOWNLOADS
Enjoy ₹0 Account Opening Charges

Get the link to download the App

Get it on Google PlayDownload on the App Store
Open Free Demat Account!
Join our 3 Cr+ happy customers