Supreme Court Rules Against Government Employee Claiming HRA in Rent-Free Accommodation Allotted to Retired Father

In a recent judicial decree, the apex court has rendered a decision affecting the entitlement of a government employee to House Rent Allowance (HRA) when residing in rent-free accommodation allocated to a retired government servant, specifically the employee’s father.

The bench, comprising Justices BR Gavai and Sandeep Mehta, deliberated on the matter, culminating in the affirmation of a HRA recovery notice against the appellant. They asserted that as per the Jammu and Kashmir Civil Services (House Rent Allowance and City Compensation Allowance) Rules of 1992, the appellant, in his capacity as a government employee, could not lay claim to HRA while occupying accommodation provided to his retired father. This ruling validated the issuance of a recovery notice demanding Rs.3,96,814/-, previously claimed by the appellant as HRA.

The case revolved around an Inspector (Telecom) in the Jammu and Kashmir Police’s 4th Battalion who retired on April 30, 2014. Following his retirement, he was notified of outstanding HRA dues in his name, prompting the recovery notice.

The appellant’s legal representative, Advocate Ms. Purnima Bhat, contended that the accommodation in question belonged to the appellant’s father, a retired Deputy Superintendent of Police. She invoked Rule 6(h)(iv) of the 1992 Rules, which stipulates that when multiple family members are government employees residing together in government-provided housing, only one member may receive HRA.

However, the State’s counsel, Mr. Parth Awasthi, argued that since the appellant availed himself of the residence allotted to his father, Rules 6(h)(i) and (ii) applied, rendering him ineligible for HRA.

The Court dismissed the appellant’s reliance on Rule 6(h)(iv), asserting its inapplicability to the situation. They affirmed the High Court’s dismissal of the petitions, emphasizing the appellant’s ineligibility for HRA while residing in accommodation designated for his retired father.

In essence, the ruling delineated the boundaries of HRA entitlement for government employees residing in housing allocated to retired family members, underscoring the principle that such individuals cannot claim HRA post-retirement.

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