Mumbai News: Retired Employee Sues BMC For ₹25 Lakh Over 10-Year Delay In Paying Gratuity

Mumbai: The Brihanmumbai Municipal Corporation (BMC) has disbursed Rs 25 lakh to a retired employee, which includes Rs 16 lakh for gratuity and Rs 9 lakh for interest, after delaying her gratuity payment due to an investigation involving her. Sujata Jadhav, a previous chief clerk, contested the BMC, recognised as the wealthiest municipal corporation but criticised for its management practices. More than ten years after retiring, Jadhav pursued justice in the labour court, resulting in a High Court decision that required her gratuity and interest to be paid.

The court ruled that gratuity must be disbursed within 30 days post-retirement, and if delayed, a 10 per cent interest applies, stressing that it cannot be delayed due to ongoing inquiries. Advocates Prakash Devdas and Vidula Patil represented Jadhav, effectively arguing her case in court.

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Devdas commented on the impact of this situation on public finances, condemning the squandering resulting from the BMC’s negligence in meeting legal requirements, which might have avoided unnecessary expenditures. He emphasised the importance of accountability by proposing that the interest paid should be reclaimed from the officials who gave erroneous advice about withholding gratuity, according to report by Loksatta.

This situation emphasises a wider problem, as numerous other retired BMC workers face similar violations of their rights because of slight misconduct.

Devdas emphasises the need for prompt payment of obligations and compliance with regulations, claiming that incorrect interpretations of laws or guidance should be rectified to prevent additional misuse of public resources in the future. He determined that safeguarding the rights of retired staff is crucial for ensuring accountability and effective management of funds within the BMC.

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