Calcutta High Court on Friday upheld the state administrative tribunal’s verdict that Bengal government employees had the right to dearness allowance on a par with that of the staff of the Centre.

A division bench comprising Justice Harish Tandon and Justice Rabindranath Samanta directed the state government to clear the due DA within three months.

“The state is directed to implement the SAT’s order by three months after the passing of this order,” the high court said.

Sources in the state administration said it would need Rs 20,000 crore to clear the due DA.

A source said the Centre had given 34 per cent DA (of the basic pay) to its employees after the seventh pay commission had been implemented in January, 2016. In Bengal, the government has so far given 3 per cent DA after the sixth pay commission was implemented from January, 2020, which means there is a backlog of around 30 months.

“Rough estimate suggests that the state needs to spend Rs 64 crore a month to give 1 per cent DA.… The Centre had announced DA in phases. A detailed calculation regarding the due DA is yet to be calculated, but the outgo is likely to be more than Rs 20,000 crore,” said a senior government official.

Sources in the Bengal government said the state’s financial condition did not allow it to shoulder such a huge burden at present. “The state government is considering options to move the Supreme Court challenging the order. The final decision will be taken by the chief minister,” said another official.

While delivering the judgement on an appeal moved by the state against the SAT’s 2017 directive, the high court observed: “Getting DA is the fundamental right of the employees and the DA of the employees should be fixed on the basis of National Price Index ( as fixed by the central government).”

Two unions of state government employees had been fighting legal battles since 2016 on the DA. In early 2017, the SAT had held that DA was the discretion of the government, which it may or may not pay to its staff. The unions moved an appeal before the high court which held that the DA was the fundamental right of the employees.

A division bench then sent the matter back to the SAT, asking it to revise its order and fix the quantum of DA entitlements. The SAT revised its order, asking the state to pay the DA to its employees on a par with that of central staff and clear all dues. The state moved the high court against the order.