The Supreme Court has delivered a stinging blow to the West Bengal government, directing it to release 25% of the pending Dearness Allowance (DA) by March 6, 2026. The bench of Justice Sanjay Karol and Justice Prashant Kumar Mishra ruled that the arrears must include dues pending since 2008 and must strictly adhere to the All India Consumer Price Index (AICPI) standards—a point the state had long contested.

To evaluate the state’s claim of “empty coffers,” the Apex Court has constituted a high-level committee chaired by retired Justice Indu Malhotra. The panel, which includes the Comptroller and Auditor General (CAG) and Justices Tilosingh Chauhan and Gautam Bhaduria, will determine the modalities for the remaining 75% payment. The committee is expected to submit its report by May 15.

This ruling ensures that employees and pensioners from the 2008-2019 period receive their rightful dues. Estimates suggest the immediate payout will cost the state exchequer roughly ₹10,000 crore. While the court noted that DA is not yet classified as a “fundamental right,” the enforcement of statutory dues has put the state in a precarious financial and political position.