Chapter-I Introduction

Transcription

1 Chapter-I Introduction 1.1. A Writ Petition WP (C) No 5384 of 2008 was filed by Shri Atul Chandra Barthakur and other employees of the Cost of Cultivation Scheme, Assam Agricultural University, Jorhat, Assam in 2008 in the Hon ble High Court of Guwahati against the Assam Agriculture University & Others including Union of India through Secretary, Department of agriculture & Cooperation, Ministry of Agriculture, for treating their services at par with the similar category of staff of Assam Agricultural University and providing pension benefits to the employees under the Cost of Cultivation Scheme. The Hon ble High Court of Gauhati, on disposed of Writ Petition with the direction to Union of India to constitute a committee to examine the claim of the petitioner for payment of pension. In compliance to the above order, the Department of Agriculture & Cooperation has constituted a Committee under the Chairmanship of Additional Secretary (EA), Department of Agriculture & Cooperation to examine the claim of the petitioners appointed under Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India, popularly known as Cost of Cultivation Scheme, for payment of pension. A copy of the notification of the Committee and the abstract of the orders of the Hon ble Court are placed at Annexure-I & II. Facts of the case 1.2. In the case No. W.P.(C) No. 5384/2008. Union of India through Secretary, Department of Agriculture & Cooperation, Ministry of Agriculture and Economic & Statistical Adviser, Directorate of Economics & Statistics, Ministry of Agriculture are the Respondent No. 3 and 4. The case is regarding the extension of Pensionary benefits to the staff deployed under the Cost of Cultivation Scheme, Assam, which is available to the similar category of the staff of the University. The petitioners in the case have pleaded that they should be treated at par with equivalent staff of the University and benefits available to the University employees of similar grade including pension should be provided to them. Views of Assam Agricultural University 1.3. The Assam Agriculture University (AAU) as Respondent No. 1 in the case has taken a stand that the Cost of Cultivation Scheme is operated by the Director of Agro- Economic Research Centre for North East India. Though the University authority had agreed to implement the Scheme but it was not merged fully as an integrated centre of the University. There was no approval of the Board of Management for direct control [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 1

2 by the University administration. Petitioners had entered into service under Contributory Provident Fund (CPF) system of retirement benefits. No financial commitment was made by the Government of India to the implementing agencies to provide pension to the employees of the Scheme. Scheme is not under the direct administrative control of the University. Scheme is primarily meant to provide farm data to the Commission for Agricultural Cost and Prices, which is a temporary Commission. If the Commission is closed, the Scheme has also to be closed. It has no parent body to handle pension fund. It was submitted in the Court that petitioners are not employees of the University and, therefore, the University has no legal obligation to provide pension to them. Views of Union of India 1.4. On behalf of the Union of India, this Ministry has filed an Affidavit in the Hon ble court stating that the scheme under reference is a Plan scheme and approved on Plan to Plan basis keeping in view the need and necessity of the scheme. The Scheme was entrusted to the University in the year 1971 for its implementation in the State of Assam. Role of the Central Government is limited to providing grants-in-aid and technical guidance. Though the posts under the Scheme are sanctioned by the Government of India, the appointments are made by the University as it has overall administrative control over the employees of the Scheme. There is no provision for pension and no such commitment has been made by the Government of India in this regard. The Scheme is not of permanent nature and its continuation is subject to periodical evaluation. Employees under the Scheme are entitled to CPF. It is up to the AAU to extend pensionary benefits to the employees of the above scheme like the other employees, of the university, without however involving any contribution from Government of India. Liability of the Government of India is restricted to annual grant for approved items under the scheme. Observations of Hon ble High Court of Guwahati 1.5. The Hon ble Court observed that the Scheme is continuing since It has completed more than 4 decades. As such, it has acquired an element of permanency. The particulars given in the writ petition, which have not been disputed, indicate the long period of service rendered by the petitioners, including those who had retired on attaining superannuation. Those petitioners had put in their entire service life while serving under the Scheme. Therefore, their claim for pension cannot be simply brushed aside In such circumstances, having broadly noticed the features of the grievance raised in the present proceeding and the sympathetic view of the Central Government [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 2

3 authorities, Court directed the Ministry of Agriculture, Government of India to constitute a committee, which should include a representative of the University and such other members as the Agriculture Ministry may decide, to examine the claim of the petitioners for payment of pension. The Secretary to the Government of India, Ministry of Agriculture was directed to notify constitution of such a committee within a period of 4 (four) weeks from the date of receipt of a copy of this order. To facilitate the deliberation before the committee, the University may submit a detailed proposal before the Ministry of Agriculture, Government of India indicating therein the financial involvement in the event of grant of pension to the employees under the Scheme, including the petitioners. Constitution of the Committee 1.7. In compliance to the orders of Hon ble High Court of Gauhati, dated in WP (C) No 5384 of 2008 of Shri Atul Chandra Barthakur & Others Vs. Assam Agriculture University & Others, the Department of Agriculture & Cooperation has constituted a Committee vide their order dated , under the Chairmanship of Additional Secretary (EA), Department of Agriculture & Cooperation to examine the claim of the petitioners appointed under Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India, popularly known as Cost of Cultivation Scheme, for payment of pension The composition of the Committee is as under: i. Shri Ranglal Jamuda, Additional Secretary (EA), Department of Agriculture & Cooperation, New Delhi. ii. AS & FA, Department of Agriculture & Cooperation, New Delhi or his representative iii. Dr. B. Gangaiah, ESA, Directorate of Economics & Statistics, DAC, New Delhi iv. Joint Secretary (Pers), D/o Expenditure, M/o Finance, New Delhi v. Adviser (Agriculture), Planning Commission, New Delhi Chairman Member Member Member Member [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 3

4 vi. Vice Chancellor of the Assam Agriculture University or his representative. vii. Additional Statistical Adviser(CS) Directorate of Economics & Statistics, DAC New Delhi Member Member Secretary The Terms of Reference of the Committee are: a. To examine the claim of petitioner in WP(C) No: 5384 of 2008 in the Gauhati High Court for payment of pension. b. To examine any other relevant and related matter. Cost of Cultivation Scheme The Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India was initiated during the year as a 100% Central Sector Plan Scheme. The main objectives of this scheme is to collect and compile field data annually, on cost of cultivation and cost of production in respect of various agricultural crops, and to generate crop-wise and state-wise estimate of cost of cultivation and cost of production of selected agricultural crops. These estimates are being furnished to the Commission for Agricultural Costs and Prices (CACP) who in turn recommend the MSPs to the Government Directorate of Economics & Statistics in the Department of Agriculture & Cooperation, Ministry of Agriculture is designated as the nodal agency for getting the survey conducted in 19 major States through 16 agricultural/ general universities / college Under the scheme, role of the Central Government is limited to provide grants-in-aid and technical guidance from time to time for the smooth functioning of the scheme. The posts for the scheme are sanctioned by the Government of India but employees are appointed by the respective Implementing Agencies (Agricultural / General Universities). They have overall control over the administrative matters of employees under the scheme. Under the above scheme grants-in-aid are released to Implementing Agencies (IA s). As this is a staff oriented scheme, almost 95% of the grants-in-aid are utilized for the payment of salary and such other allowances. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 4

5 Staffing pattern under the Scheme: Each implementing agency is having the posts of Honorary Director, Field Officer, Assistant Statistician, Field Supervisor, Fieldsmen, Clerk/ Typist and Peon, aggregating to a total of 1087 personnel at various Implementing Agencies. The norm of staff originally sanctioned at each Implementing Agency vis-à-vis the revised norm is given below: Table: 3.1: The Norm of Staff Sanctioned at Each of Implementing Agency Designation Norm (Number) Honorary Director 1 Field Officer 1 Assistant Statistician 1 Field Supervisor Computor Field-men Clerk/ Typists 1 for 10 clusters / Field-men 1 for 10 clusters 1 for each cluster without any leave reserve 2 for 30 clusters, 3 for 45 to 60 clusters and 4 for 75 clusters Peon 1 Implementing agency wise number of staff is given in Annexure-III. Provision of Pension under the Scheme : The scheme is a Plan scheme and approved on Plan to Plan basis keeping in view the need and necessity of the scheme. No provision for pension was envisaged under the scheme of the Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India. No financial commitment was made by the Government of India to the implementing agencies towards pension provision of the employees in the Scheme. This Scheme is not of permanent nature, it is evaluated from time to time. The continuity of the scheme is subject to evaluation reports. Employees of the scheme are entitled to Contributory Provident Fund (CPF) benefits. It is for the [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 5

6 Implementing Agencies to extend pensionary benefits to the employees of the scheme like the other employees of the university, without however involving any contribution from Government of India. Liability of the Government of India is restricted to annual grant for approved items under the scheme. There is no provision for pension in these approved items The views of this Directorate were communicated to all the implementing agencies vide it s letter dated (copy at Annexure- IV) that the staff of the Cost of Cultivation Scheme is subject to the rules and regulations of the respective Universities. Thus, they are also entitled to the benefits, available to the similar category of staff of the University. The role of this Directorate is limited only to give grants-in-aid for the implementation of this scheme. Implementing Agencies were urged to treat the staff of the scheme of Cost of Cultivation, as the staff of the University and to extend all the benefits available to the similar category of staff of the University to the employees of the scheme. Provisioning of Pension by the Implementing Agencies: As per information available, 11 out of 16 Implementing Agencies are paying pension to their employees. All Implementing Agencies are not treating the employees working under the Scheme at par with their counterparts in the University / College. As there is no clause in the existing terms and conditions governing pension matter, different Implementing Agencies follow different patterns / procedures in the matter of payment of pension for the staff under the Scheme. Five Implementing Agencies in Assam, Gujarat, Kerala, Uttar Pradesh and West Bengal do not pay any pension at all to the employees retired from the Scheme. (Annexure-V). Recommendations of the Inter Ministerial Committee on Pension An Inter-Ministerial Committee (IMC) headed by Special Secretary/ Additional Secretary, DAC with Members from Planning Commission and ICAR was set up by the Government in December, 2003 to examine the structure and functioning of the Scheme. The IMC submitted its report to the government in July, Apart from other recommendations, IMC recommended payment of pension (in lieu of CPF/ EPF) to all employees retired from four Implementing Agencies (at present five i.e. West Bengal, Assam, Gujarat, Kerala and Uttar Pradesh) under the Scheme on the pattern followed in Karnataka. The pension in these states will be applicable to only those who have joined the service on regular basis on or before New regular employees as and when recruited should be governed by the new Pension Rules applicable to Central Government employees with effect from January 1, Cabinet Committee on Economic Affairs (CCEA) in its meeting held on 20th April, 2005, approved the scheme with other proposals contained in it except the matter pertaining to pension. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 6

7 Chapter-2 Approach and Response 2.1 As directed by the Hon ble High Court of Guwahati and decided in the 1 st meeting of the Committee, Assam Agriculture University submitted a proposal for grant of pension for the employees under the Cost of Cultivation Scheme. Assam Agriculture University has stated that they are not averse to grant in pension to the employees of Cost of Cultivation Scheme subject to the Ministry clears the arrears liabilities of the retired employees and the NPS is implemented w.e.f In their proposal, AAU proposed to consider two types of pension for the following three categories of employees under the scheme as per their date of appointment:- A. Retired employees (43 Nos.): Employees who were appointed by the University during 1970 s and have already retired from CCS service. All the retired persons have already received CPF, Gratuity & Leave Encashment as retirement benefit. They may be covered under Pension Scheme by replacement of CPF scheme. If approves, this amount should come from the GOI. B. Retiring employees (26 Nos.): Employees who joined prior to Jan 01, 2004 and still serving. This category of employees is also needed to be supported and a part of Grants-in-aid received from the Ministry may be earmarked for granting pension to meet the additional financial burden. In this regard, a pension fund will be required to be created and accordingly provision in Budget estimate may be made. The University has also moved a separate proposal to the Government of Assam for making necessary provision in the AAU-budget to meet the current liability. C. Other serving employees (28 Nos.): Employees who joined the Centre on or after January, 01, 2004, may be covered under New Pension Scheme as per letter no. 3-10/2003/CS-ES dtd and the DES may make matching grant accordingly. 2.2 The Assam Agriculture University in their proposal calculated the arrear liability to pay the pension to the retired employees of Cost of Cultivation Scheme as Rs. 2.86/- crore and monthly requirement (additional) as Rs. 9.32/- lakh upto 31 st August, In their proposal Assam Agriculture University requested the Government to replace CPF with pension scheme for the employees under the CCS,AAU, Jorhat who join prior to and served/serving the scheme for the interest of the farmers and implement NPS in CCS with retrospective effect. A copy of the proposal submitted by Assam Agricultural University is placed at Annexure-VI. 2.3 The proposal of the Assam Agricultural University was examined by the committee in consultation with Department of Expenditure and also discussed in the [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 7

8 second meeting of the Committee. Department of Expenditure has stated that the Department has been receiving proposals from Ministries/Departments requesting for introduction of pension scheme on GOI pattern for the employees of autonomous bodies under their administrative control. Proposals have also been received wherein administrative Ministries have sought one time grant from Government for starting a pension scheme on GOI pattern. D/o Expenditure however, as a matter of policy, has not been agreeing to introduction of pension scheme on GOI pattern in the autonomous bodies on the following grounds:- 1) The cost of introduction of pension scheme is much higher than the CPF Scheme. The cost on pension scheme keeps on increasing with every increase/revision in the scales of pay/pensionary benefits recommended by the successive Pay Commissions set up by the Government. 2) While CPF is a one-time settlement, pension is a life-long commitment on the part of the Government. 3) For servicing a pension scheme, a pension fund has to be managed by a Trust, difficulties may be experienced in judicious administration of the fund. 4) In case of winding up of the organization,. The Government may have to take over the entire liability of the Pension Fund. 2.4 It also mentioned that there are several autonomous organizations which have been demanding defined benefit pension Scheme in respect of their employees recruited before and covered under CPF Scheme. In case the proposal of Ministry of Agriculture is agreed to, it will have financial implications not only in respect of C.S. Scheme but also in respect of the other autonomous bodies/centrally funded Institutions. 2.5 It has been prescribed in Rule 209(6)(iv)(b) of the General Financial Rules, 2005 that Grantee Institutions or Organisations should be encouraged to take advantage of the pension or gratuity schemes or group insurance schemes or house buildings loans or vehicle loans schemes etc., available in the market for employees instead of undertaking liability on their own or Government account. 2.6 The Government of India introduced National Pension System with effect from in view of the fact that the sustainability of the Defined Benefit Pension Scheme became a matter of concern. At a time when Defined contributory Pension has been made mandatory in the form of New Pension System in respect of employees recruited on or after , any step backward by adopting Defined Benefit Scheme for a set of employees will be a retrograde step. A copy of the comments of Department of Expenditure is placed at Annexure-VII. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 8

9 2.7 The Committee had three meetings in the Department of Agriculture & Cooperation, Ministry of Agriculture, New Delhi. The meetings were attended by representatives of Ministry of Finance, Planning Commission, Assam Agricultural University and officers of the Ministry of Agriculture. In the course of the meetings, views and suggestions of various Departments were obtained. In particular, their main areas of concern within the framework of Terms of Reference were discussed. Minutes of the meetings are placed at Annexure VIII, IX and X. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 9

10 Chapter-3 Recommendations 3.1 The recommendations contained in this report have been made after taking into account observations made by various members of the Committee, feedback received from the concerned officers in the Ministry, as well as other relevant factors having a bearing on administrative and financial issues, and their impact on the services of the employees. 3.2 The Government of India introduced National Pension System with effect from in view of the fact that the sustainability of the Defined Benefit Pension Scheme became a matter of concern. 3.3 The Committee recommends that the employees of Cost of Cultivation Scheme in Assam Agricultural University, who joined on or after , may be covered under New Pension Scheme and the DES may make matching grant accordingly. 3.4 The committee also recommends that the employees who joined before and still serving and are covered under the CPF Scheme may be permitted to shift to a defined Contribution Pension Scheme i.e. NPS in terms of OM No. 1(2)/EV/2007 dated However, it will not be applicable to the employees of the CCS Scheme in AAU, Jorhat, who have already retired from service. ( Ranglal Jamuda) A.S. (EA), DAC Chairperson (Raghav Chandra) AS & FA, DAC Member (T.K. Dutta) Adviser (Cost) representing ESA (DES) Member ( V.K. Singh) Director, representing, J.S.(Pers) D/o Expenditure Member (Dr. J.P. Mishra) Adviser (Agriculture), Planning Commission Member (Dr. A.K. Das), Representing Vice Chancellor, AAU Member (Chander Kant) Addl. Statistical Adviser, DES, Member Secretary [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 10

11 Annexure-I [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 11

12 [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 12

13 Annexure-II Abstract of the Orders of Hon ble High Court of Gauhati BEFORE THE HON BLE JUSTICE UJJAL BHUYAN For the petitioners: For the respondents: Mr. B.D. Das, Sr. Advocate Mr. H.K. Sarma, Advocate Mr. N. Goswami, Advocate Mr. D. Nath, Advocate Mr. P. Katakey, S.C.A.A.U. Mr. C. Baruah, Central Govt. Counsel Date of hearing : and Date of Judgment & Order : JUDGMENT AND ORDER (ORAL) By way of this petition under Article 226 of the Constitution of India, petitioners seek a direction to the respondents to provide benefit of pension to them by treating their services at par with similar categories of employees of the Assam Agricultural University, Jorhat. [2] Case of the petitioners is that Central Government in the Agriculture Ministry had introduced a scheme called Studies on Inputs for Agricultural Economic Policy and Development in the year 1971, which is still in force. One of the constituent scheme was Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India. The scheme is implemented through the Agricultural Universities and grants-in-aid are provided by the Central Government to meet the salaries and other expenses. Employees engaged in the Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India (Scheme) are governed by the rules and regulations of the Universities. [3] Assam Agricultural University, Jorhat (University) was accorded administrative approval by the Central Government for implementation of the Scheme. The University was requested to make recruitment of suitable candidates against various posts for implementation of the Scheme. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 13

14 [4] Director, Agro-Economic Research Centre for North East India was entrusted as in-charge of the Scheme and he was also designated as Drawing and Disbursement Officer of the Scheme. [5] Petitioners were recruited by respondent No. 1 against various posts, such as, Field Officer, Assistant Statistician, Field Supervisor, Computor, Field Man and establishment staff. Since then, petitioners have been discharging their duties. In the meanwhile, a number of petitioners had retired from service on attaining the age of superannuation. The particulars of the petitioners are given in detail in paragraph 4 of the writ petition. [6] Petitioners raised the grievance before the University authorities that they should be treated at par with equivalent staff of the University and benefits available to the University employees of similar grade including pension should be provided to them. In support of their claim, petitioners relied upon certain official communications. Economic and Statistical Adviser to the Government of India in the Ministry of Agriculture, Directorate of Economics & Statistics informed the Vice-Chancellor of the University by letter dated that some of the Universities do not consider the staff of the Scheme as their employees. Consequently, the benefits available to the University employees are not extended to the employees appointed under the Scheme. It was brought to the notice of the Vice-Chancellor that the employees of the Scheme are subject to the rules and regulations of the University and, therefore, they are entitled to similar benefits as provided to the employees of the University. The Assistant Economic Adviser, Government of India, Ministry of Agriculture (Department of Agriculture and Cooperation) vide his letter dated had sought for information from the Director of the Scheme about the particulars of the employees of the Scheme including the projected expenditure for pension so that the same could be incorporated in the proposal for grant of pension to the employees of the Scheme to be submitted to the Central Government. [7] Highlighting the above grievance, petitioners submitted representations before respondent No. 4 as well as respondent No. 1 but there was no response. [8] Aggrieved, petitioners have preferred the present writ petition seeking the relief as indicated above. [9] Contention of the petitioners is that employees under the Scheme are governed by the rules and regulations of the University and they work under the general control of the University. Their services are, therefore, to be treated at par with the employees of the University and same benefit as provided to the employees of the [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 14

15 University, should be given to them. Employees appointed under the same Scheme in other Universities, such as, University of Agricultural Sciences, Bangalore and Haryana Agricultural University are not provided pension. On a petition filed by the employees appointed under the Scheme in Kerala, the High Court of Kerala vide the judgment dated in O.P. No /1998 directed the University of Kerala to send proposal for payment of pension of those petitioners to the Central Government within a period of 6 months. Appeal filed by the Union of India was dismissed. [10] Respondent No. 1 has filed affidavit. Stand taken is that the Scheme is purely a Central Government Scheme under the Ministry of Agriculture. The said Scheme is not under the University but under the control of Agro-Economic Research Centre of North East India. The same is an independent organization which is not under any administrative control of the University. The Research Centre is not guided by the rules and regulations of the University. Though the Vice-Chancellor of the University is the Chairman of the Research Advisory Committee of the Research Centre, he has no administrative role to play. University is neither empowered nor authorized to grant any pensionary benefit to the employees of the Scheme. Though the Research Centre controlling the scheme is located within the University campus, the University has no administrative or budgetary control over the functioning of the Scheme. [11] Respondent No. 2 in its affidavit has stated that the Scheme is operated by the Director of Agro-Economic Research Centre for North East India. Though the University authority had agreed to implement the Scheme but it was not merged fully as an integrated centre of the University. There was no approval of the Board of Management for direct control by the University administration. Petitioners had entered into service under Contributory Provident Fund (CPF) system of retirement benefits. No financial commitment was made by the Government of India to the implementing agencies to provide pension to the employees of the Scheme. Scheme is not under the direct administrative control of the University. Scheme is primarily meant to provide farm data to the Commission for Agricultural Cost and Prices, which is a temporary Commission. If the Commission is closed, the Scheme has also to be closed. It has no parent body to handle pension fund. Regarding pension provided to the employees of the Scheme by the University of Agricultural Sciences, Bangalore and by the Haryana Agricultural University, it is stated that those employees of the Scheme are regular employees of the said Universities and they are subject to pension scheme like other employees of the Universities. In so far pensionary benefit to the employees of the Scheme under Kerala University is concerned, it is stated that the matter is under consideration by the Hon'ble Apex Court but it is also stated that the employees of the Scheme under Kerala University are integrated employees of the said University. Service status of the petitioners cannot be compared or equated with those employees. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 15

16 [12] A common counter-affidavit has been filed by respondent Nos. 3 and 4. It is stated that the Scheme is a Plan Scheme and approved on Plan to Plan basis keeping in view the need and necessity of the Scheme. The Scheme was entrusted to the University in the year 1971 for its implementation in the State of Assam. Role of the Central Government is limited to providing grants-in-aid and technical guidance. Though the posts under the Scheme are sanctioned by the Government of India, the appointments are made by the University as it has overall administrative control over the employees of the Scheme. There is no provision for pension and no such commitment has been made by the Government of India in this regard. The Scheme is not of permanent nature and its continuation is subject to periodical evaluation. Employees under the Scheme are entitled to CPF. However, it is stated that proposal for payment of pension to the employees under the Scheme is under consideration of the Government of India. Therefore, status-quo in the matter may be maintained. Regarding the judgment of Kerala High Court, it is stated that matter is now before the Hon'ble Supreme Court. [13] In their brief reply affidavit to the counter-affidavit filed by the respondent Nos. 3 and 4, petitioners have reiterated their contentions as advanced in the writ petition. It is however contended that authorities in the Central Government are sympathetic to the cause of the petitioners but because of non-submission of proposal by the University, petitioners have been deprived of their pensionary benefit. [14] In the course of hearing, petitioners had filed an additional affidavit on to place on record a letter dated issued by the Additional Statistical Advisor, Government of India, Ministry of Agriculture, Department of Agriculture and Cooperation, Directorate of Economics and Statistics and addressed to the respondent No. 2 which says that certain particulars of the employees were required to facilitate submission of proposal for payment of pension to the employees under the Scheme to the Cabinet Committee on Economic Affairs. [15] A further affidavit was filed by the petitioners on to bring on record a letter dated of the respondent No. 2 addressed to the Additional Statistical Advisor, Ministry of Agriculture, Directorate of Economic and Statistics requesting the said authority to reaffirm the Ministry's commitment for clearing the arrear liabilities in the event of implementation of the pension scheme for the employees under the Scheme. It is stated that the matter is being pursued to enable the University to take a decision towards full integration of the Scheme with the University. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 16

17 [16] Heard Mr. B.D. Das, learned senior counsel for the petitioners and Mr. P. Katakey, learned Standing Counsel, Assam Agricultural University. Also heard Mr. C. Baruah, learned counsel appearing for respondents 3 and 4. [17] Learned senior counsel for the petitioners submits that the nature of work of the employees appointed under the Scheme are similar to the work performed by the employees of the University. They render full time duty. Referring to the counteraffidavit filed by respondent Nos. 3 and 4, he submits that as per their own showing, proposal for payment of pension to the petitioners is under consideration of the Government of India. Therefore, necessary direction may be issued to expedite the matter so that petitioners can avail the benefit of pension. Since similarly placed employees in Bangalore and Haryana have been granted pension, there is no reason why petitioners should be deprived of such benefit. He has also placed before the Court a copy of a decision by the Allahabad High Court in Writ Application No /2007 dated whereby a Single Bench of the said High Court directed the Central Government to pass appropriate order for post retirement benefits like gratuity, pension, etc. to the petitioner who is similarly placed like the present petitioners. [18] Mr. Katakey, learned Standing Counsel, Assam Agricultural University submits that petitioners are not employees of the University and, therefore, the University has no legal obligation to provide pension to them. Petitioners stand on different footing from the employees under the Scheme in Bangalore or Haryana or even in Kerala as those employees are either employees or integrated employees of the concerned Universities unlike the petitioners. [19] Mr. C. Baruah, learned Central Government Counsel submits that since the decision of the Kerala High Court is being examined by the Hon'ble Supreme Court, no final decision has been taken by the Central Government on the prayer of the petitioners. [20] Submissions made have been considered. [21] In the hearing on , Mr. Baruah was granted time to obtain up-todate instruction regarding any subsequent decision taken by the Government of India to provide pension to the employees appointed under the Scheme. Learned counsel for the parties were also asked to inform the Court about the decision of Hon'ble Apex Court in the appeal against the judgment of the Kerala High Court. [22] Though Mr. Baruah submitted on instruction that the Central Government has deferred consideration of the proposal till the outcome of the Court decision, none of the counsel could inform the Court as to the outcome or stage of the proceedings [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 17

18 before the Hon'ble Apex Court in the appeal stated to have been filed against the judgment of the Kerala High Court. [23] However, from a perusal of the affidavits and the documents placed on record, one gets the impression that the Central Government is not quite averse to the idea of providing pension to the employees appointed under the Scheme. In his letter dated , a copy of which has been placed before the Court by Mr. Baruah, the Additional Statistical Advisor, Government of India, Ministry of Agriculture, Department of Agriculture and Cooperation, Directorate of Economics and Statistics had informed respondent No. 2, that staff of the Scheme are subject to the rules and regulations of the respective Universities and thus they are also entitled to the benefits available to similar category of staff of the Universities. The posts for the Scheme are sanctioned by the Government of India but the employees are recruited by the University as the University has overall control over the administrative matters of the employees under the Scheme. It was opined that the University may treat the staff of the Scheme as University employees and benefits may be extended to them as per University norms. [24] Mr. Katakey as well as Mr. Baruah, have laid much emphasis on the fact that employees under the Scheme at Bangalore and Haryana were regular employees of the concerned Universities and, therefore, they were rightly granted pension since pension is provided to the employees of the said Universities. In so far the Kerala decision is concerned, the Division Bench had noticed that the University of Kerala had evolved a pension scheme in respect of the employees covered by the Scheme. The Division Bench had observed that whether there would be burden on the Union of India by introduction of the pension scheme was yet to be seen and in the event of any such burden, the question was posed as to whether the Union of India would pursue the matter. In such circumstances, the writ appeal filed by the Union of India was held to be premature and was dismissed. In his affidavit, respondent No. 2 has stated that employees of the Scheme in Kerala are integrated employees of Kerala University. Therefore, their case perhaps stands on a different footing from the case of the petitioners. [25] As noticed above, the Scheme is continuing since It has completed more than 4 decades. As such, it has acquired an element of permanency. The particulars given in paragraph 4 of the writ petition, which have not been disputed, indicate the long period of service rendered by the petitioners, including those who had retired on attaining superannuation. Those petitioners had put in their entire service life while serving under the Scheme. Therefore, their claim for pension cannot be simply brushed aside. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 18

19 [26] In such circumstances, having broadly noticed the features of the grievance raised in the present proceeding and the sympathetic view of the Central Government authorities, Court is of the view that the Ministry of Agriculture, Government of India should constitute a committee, which should include a representative of the University and such other members as the Agriculture Ministry may decide, to examine the claim of the petitioners for payment of pension. Let the Secretary to the Government of India, Ministry of Agriculture notify constitution of such a committee within a period of 4 (four) weeks from the date of receipt of a copy of this order. To facilitate the deliberation before the committee, the University may submit a detailed proposal before the Ministry of Agriculture, Government of India indicating therein the financial involvement in the event of grant of pension to the employees under the Scheme, including the petitioners. [27] Writ petition is accordingly disposed of. No cost. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 19

20 Annexure-III Sl.No. Implementing Agencies wise staff strength under the Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in India Implementing Agency (State) Hon. Director Field Officer Asstt Statist Field Super. Comp uter Fields men (Figure in Number) Clerks/ Peon Typist Acharya N.G. Ranga Agricultural University, Hyderabad 2 Assam Agricultural University, Jorhat, Assam 3 Rajendra Agricultural University, Samastipur, Bihar 4 Sardar Patel University, Gujarat 5 CCS haryana Agricultural University, Hissar 6 Himachal Pradesh University, Shimla, H.P. 7 University of Agri. Sciences, Bangalore, Karnataka 8 University of Kerala, Thiruvanthapuram JLN Krishi Viswa Vidyalaya, Jabalpur, M.P Mahtma Phule Krishi Vidya Peeth, Ahmednagar, Maharashtra 11 Orissa University of Agri. & Tech Bhubaneshwar 12 Punjab Agriculral University, Ludhiana Total [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 20

21 Sl.No. Implementing Agency (State) Hon. Director Field Officer Asstt Statist Field Super. Comp uter Fields men Clerks/ Typist Peon Total Maharana Pratap Uni. Of Agriculture and Technology, Udiapur 14 Tamil Nadu Agriculure University, Coimbatore 15 R.B.S. College, Agra, U.P. 16 Bidhan Chandra Krishi Viswa Vidyalaya, West Bengal 18 Arecanut, Karnataka* Total *- This study is being conducted by the Implementing Agency in Karnataka. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 21

22 Annexure-IV [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 22

23 [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 23

24 Annexure-V Implementing Agencies-wise provision of pension under Cost of Cultivation Scheme. S.No. State Current Status regarding provision of pension under CS Scheme 1 Andhra Pradesh The provision of the pension (GPF/CPF and Modalities etc.) the employees of the Cost of Cultivation Scheme as er the rule of Acharya N.G. Ranga Agricultural University. The staff of the Cost of Cultivation Scheme are clamming the (GPF) at Acharya N.G. Ranga Agricultural University only. Since, 2004 onwards recruities of the Acharya N.G. Ranga Agricultural University are covered under the (CPF) Pension Scheme. 2 Assam In Assam Agricultural University Campus (AAU) Jorhat, pension facilities are operative for all the pre 2004 employees and CPF is operative for all the post 2004 employees. Although AAU, Jorhat is the implementing agency of CS Scheme, it is not directly under the control of AAU and for that reason the employees recruited under CCS prior to 2004 are not availing pension. However, the retired employees of CCS are availing 10% of Basic Pay) and Gratuity and Leave Encashment as pensionary benefit. CPF is also operative for post 2004 employees as per AAU rule (@ 10% of Basic Pay). The new pension scheme is not operative in AAU, Jorhat and for that reason post 2004 employees under CCS, Jorhat are also not covered under the scheme. The Ministry may consider the matter rightly to grant pension for all the existing and retired personnel under CCS, Jorhat. 3 Bihar The employees of Rajendra Agricultural University (RAU) got the benefit of Pension scheme as per Govt. rule who were employed before September 2005 and since September 2005, new pension scheme as per Govt. rule is implemented. 4 Gujarat Government of India has not sanctioned pension scheme for the employees of Cost of Cultivation Scheme in the State. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 24

25 5 Haryana 1. In lieu of GPF/Pension Scheme, the Contributory Provident Fund Scheme is implemented. 2. The contribution of employee to Contributory Provident Fund and matching contribution by the Employer is 10% of [total of Basic pay (pay band) + Academic Grade Pay + Dearness Allowance (D.A.)] since , to all staff of CCS (Resolution No. 20a, AERC Governing Body meeting held on January 28, 2013) In Haryana Agricultural University(HAU) the employees posted under the Cost of Cultivation Scheme are governed by the benefits available in the pension scheme as opted by them except Dr. R.S. Pannu and Mrs. Kiran Kapoor who opted to continue under the Contributory Provident Fund Scheme (CPF). 6 Himachal Pradesh The employees of the Cost of Cultivation Scheme, H.P. University, Shimla-5 have been covered under the GPF cum Pension Scheme since the year 1995 when the option for the same was extended by the H.P University for all its employees. Under the Pension Scheme more than 10 retired employees are being paid the Superannuation pension/ family pension, since the year 2006 onwards. As regards the modalities for the above, it is stated that as per the prevailing guidelines/ instructions at H.P. University, a deduction of 20 % for pension fund and 10 % for gratuity fund is made each month out of the establishment expenditure of the Scheme which is contributed to both the funds maintained by the H.P. University Pension Cell, in line with all other departments of H.P. University. 7 Madhya Pradesh 1. The scheme is 100% funded by Ministry of Agriculture, GOI and running as the service conditions and rules of Vishwavidyalaya. From the salary of each employee 10% of the basic is deducted and equal amount is contributed as Vishwavidyalaya share. The amount of V.V. share will be claimed from Ministry of Agriculture under pay and allowances in each months. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 25

26 Vishwavidyalaya has announced the Self Finance Pension Scheme w.e.f. April 1987 under which 10% share of Vishwavidyalaya will operate the Self Finance Pension Scheme to the employees. However employees appointed after year 2005 are governed by New Pension Scheme. 2. The staff of the Cost of Cultivation Scheme is governed by the same service conditions which are applicable to other Vishwavidyalaya employees. 3. On the retirement, the staff are entitled for post retirement benefit such as pension, leave encashment ( Max. 240 days) and gratuity. The amount of leave encashment and gratuity are claimed by the funding agency under the head of pay & allowances. 4. The staff working in the scheme is transferable within the university establishment. 8 Maharashtra In Maharashtra employees posted under the Cost of Cultivation Scheme are governed by the Maharashtra Civil Services (pension) rules 1982 and Maharashtra Civil Services(commutation of pension) rules Punjab The employees working in the Cost of Cultivation Scheme of The Govt. of India in Punjab are the employees of the Punjab Agricultural University (PAU), Ludhiana. And, all the rules and regulations admissible to the employees of PAU are applicable to the employees working in the Cost of Cultivation Scheme at PAU, Ludhiana. As pension facility is available to all the employees of the PAU, the same is applicable to the employees working in the Cost of Cultivation Scheme at PAU, Ludhiana. 10 Rajasthan The staff of Cost of Cultivation Scheme is treated at par with the regular University staff and the seniority of staff in the scheme on cost study is inter-leased with other staff of the University for all matters. The necessary deductions towards CPF/Pension, Gratuity etc are made from monthly salary of staff in [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 26

27 Cost of Cultivation Scheme every month. The pension/p.f are paid by the University as per University rules. 11 Tamil Nadu In Tamil Nadu Agricultural University the pension scheme is in vogue for the employees appointed before They are covered under the General Provident Fund/University Provident Fund Category. They are getting Regular Pension after their retirement. In the Cost of Cultivation Scheme, 58 out of the 70 staffs working at present are covered under this Scheme. In Tamil Nadu Agricultural University employees appointed from are enrolled under the Contributory Pension Fund category. They are getting Contributory Pension after their retirement. In the Cost of Cultivation Scheme, 12 out of the 70 staffs working at present are covered under this scheme. 12 Karnataka The staff/officers working under the Cost of Cultivation Scheme are paid post-retirement benefits viz. pension, gratuity and leave encashment as applicable to others to staff/officers to the University. The funds towards pension contribution at 12.5% of the basic pay of the staff/officers are adjusted from the Head pay and allowances of the Cost of Cultivation every month out of the funds released by the Directorate of Economics & Statistics, Government of India and the same are credited to pension fund mentioned by the University, The encashment of Earned Leave( upto 300 days) is permitted at the time of retirement/superannuation and this will be booked to the Head (Pay & Allowances) of the Scheme. 13 Kerala The employees posted under the Cost of Cultivation Scheme are covered by the Contributory Provident Fund (CPF). The other employees of the University of Kerala are enjoying the Statutory Pension. The Employees deployed under the scheme are also demanding Statutory Pension. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 27

28 14 Odisha The employees of Cost of Cultivation Scheme in Odisha University of Agriculture and Technology are getting pensionary benefits according to University s norms and terms. 15 Uttar Pradesh The employees of the Cost of Cultivation Scheme at R.B.S. College, Agra are availing the following benefits:- The staff is covered under the EPF scheme of Ministry of Labour, Govt. of India. An amount equal to 12% of their salary (upto Rs. 6500/-) only Basic + D.A.) with a maximum of Rs. 780/- is deducted from their salary every month. On retirement the employees get the amount of Provident Fund equal to their deposit. They are get a very nominal pension ranging between Rs. 300 to Rs maximum depending upon the length of service and amount contributed. This amount of pension is fixed and it does not have any link with the price index (D.A.) The staff also get a gratuity as per the rules of the College The pension benefit received by the staff under EPF scheme is so small that they cannot maintain their standard of living which they were having during service. It is very much desirable that a regular pension be provided to the staff as per with the other employees of the College. The College is receiving grants-in-aid from U.P. Govt. and Govt. of U.P. take the liability of Salary and retirement benefits i.e. G.P.F. and Pension of the employees of the College. In the case of Cost of Cultivation Scheme, if the Ministry of Agriculture takes the liability of retirement benefits i.e. G.P.F./C.P.F. and pension, then these benefits can be given to the person working under CS Scheme. The college is not able to take the liability to give pension and other retirement benefits to the Cost of Cultivation Scheme employees, as it is 100 per cent financed by the Ministry of Agriculture. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 28

29 16. West Bengal Persons retiring from Comprehensive Scheme are not given terminal benefit. However, authority has principally agreed to take care of them. University is going to settle the issue in consultation with the state Government. The issue is under active consideration. [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 29

30 Annexure-VI Detailed proposal for grant of Pension for the employees under Cost of Cultivation Scheme, AAU, Jorhat Cost of Cultivation Scheme in Assam.: The Comprehensive Scheme for Studying the Cost of Cultivation of Principal Crops in Assam was initiated in under the aegis of Assam Agricultural University, Jorhat. The original proposal was received by the Registrar, AAU, Jorhat to implement the scheme in Assam vide F.No.11/37-Econ-py dated the 25 th March, 1971 and the Director, Agro Economic Research Centre for North East India was entrusted for implementation of the Cost of Cultivation Scheme Vide Memo No. CS/I-A/71-72/17-18 Dt At that time, Dr. P.C. Goswami was serving as the Director, AERC, Jorhat. He continued to run the scheme even when he joined as Professor and Head of the Department of Agricultural Economics, AAU Jorhat. During the period, there was a separate Director for Agro-Economic Research Centre (Dr. P.D. Saikia). In the initial stage of implementation, only 30 sample clusters comprising of 300 farm households (i.e. 10 farm households from each sample cluster) were allotted to the state of Assam with 33 nos of Fieldman, one Field Officer, one Asstt Statistician, three Field Supervisors (one Field Supervisor to supervise 10 Fieldman), three Computors and one each of Clerk, Typist and Peon. In the initial years i.e. from 1971 to 1973, only paddy was taken as principal crop. In Jute was taken as principal crop and paddy as sub- sample for the study. Since new crop complex approach was adopted. Paddy, Jute, Rapeseed and Mustard crops are included in the crop complex. The Govt of India subsequently increased the sample size to 45(fourty five) from the agricultural year as intimated vide letter No 17012/2/82- Econ. Admn. Dated the 5 th May, The cost of cultivation data are now collected from 45 sample clusters covering 450 farm households. The staff strength at the field level, supervisory level, data entry and validation level has also been strengthened along with the increase in number of samples. In order to capture all categories of farmers of all the districts and for efficient supervision, scrutiny and validation for quality data a proposal has also been moved to the Ministry of Agriculture, GOI to increase the number of sample clusters to 50 and also to strengthen the number of Fieldman to 50, Field Supervisor to 5 and Computor to 5 numbers Vide letter No CS/C-2/ dated 20th November, 2011 [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 30

31 Sl. No. Present Aim: Besides fulfilling the mandates of the Ministry, the present aim of the Cost Study scheme, Assam is to collect and maintain quality, consistency and timeliness in cost data and to work out the cost of cultivation of principal crops of Assam and to aid and assist in teaching, research and extension activities at the university and state level. Existing Staff Position. The details of sanctioned staff strength (present), staff in position and number of post lying vacant is shown in Table-1. The name, designation, date of joining, date of superannuation and qualification along with their pay scales of existing staff of the scheme are shown in Enclosure-I. Designation No. Of post sancti oned Table -1 Staff in position Hony. Director Field Officer Assistant Statistician Field Supervisor Computor Clerk Typist Fieldman Peon Total No of Post lying vacant Retired employees and pension Scheme: As per records, the scheme so far has 43 numbers of retired employees. One of the pressing issues, as confronted by the retired employees is the non-receipt of pensionary benefits till date. The new pension scheme is also yet to be implemented in CCS for the employees recruited after 31 st December, Though there is no discrimination between the staff of AAU and that of the CCS in respect of pay and allowances and other amenities and the same set of rules govern all categories of employees, the staff of CCS has so far been denied the benefit of pension. It is worthwhile to mention that out of 17 (Seventeen) CCS centre located in different State Universities of India, the pension scheme has been implemented in 13 (thirteen) [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 31

32 centres by the respective universities except in the states of Assam, Uttar Pradesh, Gujarat and Kerala. The list of retired employees along with pensionable amount is shown in Enclosure II. The arrear liabilities to pay the pension to the retired employees of CCS stands at Rs Crores and monthly requirement (additional) will be Rs lakhs only (upto 31 st August, 2013). In this regard, Mr. G.S. Ram, the Economic and Statistical Adviser to the GOI had rightly pointed out in his D.O. letter No. 8-8/92-CS-ES dtd that the staff of CCS may be treated as University employees and the benefits available to the similar category of the staff of the University may also be extended to the employees of this scheme. He also reiterated that the role of the Directorate of Economic and Statistics is limited only to give grants-in-aid for the scheme. As such the implementing agency has no financial liabilities to meet the expenses against salary and pensionary benefits in respect of the employees of the CCS. Further, the new pension rule as outlined in letter No. 3-10/2003/CS-ES dtd is yet to be implemented in this establishment. The Ministry of Agriculture, GOI had been intimated several times for its implementation and also for full integration of C.S. Scheme with AAU. Now it is proposed to consider two types of pension for the three categories of employees under this scheme as per their date of appointment. D. Retired employees (43 Nos.): Employees who were appointed by the University during 70 s and have already retired from CCS service. All the retired persons have already received CPF, Gratuity & Leave Encashment as retirement benefit. They may be covered under Pension Scheme by replacement of CPF scheme. If approves, this amount should come from the GOI E. Retiring employees (26 Nos.): Employees who joined prior to Jan 01, 2004 and still serving. This category of employee are also needed to be supported and a part of Grants-in-aid received from the Ministry may be earmarked for granting pension to meet the additional financial burden. In this regard, a pension fund will be required to be created and accordingly provision in Budget estimate may be made. The University has also moved a separate proposal to the Government of Assam for making necessary provision in the AAU-budget to meet the current liability. (Enclosure III) F. Other serving employees (28 Nos.): Employees who joined the Centre on or after January, 01, 2004, may be covered under New Pension Scheme as per letter no. 3-10/2003/CS-ES dtd and the DES may make matching grant accordingly (Enclosure-IV) AAU & Pensionary Benefits [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 32

33 In clear terms, the AAU is not averse to granting pension to the employees of the CCS, provided The Ministry clears the arrear liabilities of the retired employees The NPS is implemented w. e. f Rationale behind The staff of the Scheme are subject to rules & regulations of the respective Universities and they are also entitled to the benefits available to similar category of staff of the Universities (ESA s letter). The employees are full time staff and have put in long years of service during last 4 decades. As such, the CCS has acquired an element of permanency. Recommendation of the IMC headed by Special Secretary/Additional Secretary, DAC. High Courts (Allahabad & Kerala) directions. Denial of pension to the employees in four IAs currently deprived of pension amounts to discrimination (Principle of equity:dac). The Department of Expenditure, GoI has already approved for replacement of CPF Scheme in case of Punjab University, Chandigarh and IUCAA, Pune. Under the situation, the competent authorities of the Government may consider replacement of CPF with pension scheme for the employees under the CCS, AAU, Jorhat who joined prior to & served/serving the scheme for the interest of the farmers in this part of the country and implement NPS in CCS with retrospective effect. ***** [Report of the Committee on Pension to the employees of CS Scheme, AAU] Page 33

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