HC directs BEST to pay retirement dues to 127 former employees | Mumbai news
MUMBAI: The Bombay high court on March 6 directed Brihanmumbai Electric Supply and Transport (BEST) to use the amounts secured through a recent loan and grant to clear the pending retirement dues of 127 former employees.
Taking serious note of the delay in payment, the court said, “A superannuated employee has a right to retiral benefits and it is not a bounty that is expected from the employer. These superannuated employees are waiting for their retirement dues for the past 6 to 9 years. They are in deep crisis and are waiting for disbursement of money which is undisputed and indisputable.”
The petition was filed by former employees who have not received their retirement benefits since 2016. Considering the unconscionable nature of the issue, the court on May 9, 2024, had directed BEST to pay the benefits to the employees in instalments.
Citing financial difficulties, BEST requested assistance from the Municipal Corporation of Greater Mumbai (MCGM), contending that it is suffering losses and surviving on subsidies by the corporation.
After being informed of the payment of the first instalment in December 2024, the court noted the difficulties faced by BEST. “It is suffering losses and can never be a profitable establishment, considering that the transportation activity has to be subsidised in order to ensure that the end users are able to use the transport services at lowest cost,” it observed.
BEST submitted that it would require ₹1,031 crore for clearing the remaining 70% of the dues and argued MCGM must provide financial assistance to it. However, the counsel for MCGM pointed out that it is not legally obliged to keep funding BEST.
In January 2025, the court directed BEST to pay the second instalment of 35% by February 28, 2025, and remarked that it would be appreciable if the municipal corporation rises to the occasion with a humane heart and helps the BEST to disburse the amount.
On March 6, however, the counsel for BEST filed an interim application, requesting for more time for the payment. It also informed the court that a loan of ₹ 100 crore has been taken from a financial institution. However, it sought a legal settlement over MCGM’s obligation to fund BEST, submitting that they had requested for an amount of ₹2,922 crore grant from them but received only ₹1,000 crore.
Extending the deadline, the court directed BEST to disburse an amount of ₹100 crore from the recently secured loan by March 25, 2025, and ₹100 crore from the ₹1,000 crore grant received from MCGM by April 15, 2025.
The court also directed BEST to set aside an amount of ₹400 crore from the grant received from MCGM for future payment of retirement benefits to the superannuated employees.
