The Deccan Chronicle 06.08.2010

Auditors say no to hike in HRA

Aug. 5: The audit wing of the treasury department has strongly objected to the district collector enhancing the house rent allowance (HRA) of about 2,000 government employees and teachers working in Thuraiyur area without the concurrence from the finance department.

In the wake of the objection, Mr Mohan Pyare, commissioner of treasuries and accounts ordered immediate stoppage of payment of enhanced HRA and also directed that the arrears paid to the employees be recovered.

The members of teachers’ association, however, obtained an interim stay from the high court last week thwarting the attempt to recover the amount.

The collector, Mr T. Soundiah, had issued the order on November 23, 2009, on a request by the teachers’ association which pointed out that the government had not enhanced the HRA though it had upgraded the Thuraiyur municipality to the level of Grade II town from Grade III.

“Based on the collector’s order, about 2000 government employees and teachers working in two panchayat unions claimed and got the HRA arrears to the tune of Rs 18 crore,” said a source. “An average of Rs 90,000 was paid as arrear to each.”

Moreover, each employee was getting additional Rs 700 as HRA every month and this was recurring expense to the government. “The collector had not obtained any concurrence from the finance department and had acted beyond the power vested with him,” added the source.