Payment of hra stopped
Querist :
Anonymous
(Querist) 09 August 2011
This query is : Resolved
Our office on the basis of OM No. F12034/1/2007-Pol-III dated 14.11.2007 have stopped payment of HRA to all the employees who were forcibly allotted givt. accommodation but did not take possession stating that "HRA will be only paid if they have applied and have been denied Govt. accommodation". This is being done to all employees whither they they are residing in their own houses or rented accommodation.
Please guide us with your expert advise.
R.Ramachandran
(Expert) 09 August 2011
The action of the organization is absolutely right. The organization has spent considerable amount in constructing the Accommodation. If employees do not make use of it, then it is their choice. The Government cannot be expected to give HRA in those cases.
But what has to be seen is that there should not be any pick and choose in making available the accommodation - like leaving one person from allotting a accommodation, while allotting the same to another person etc. It should have some clear policy in making available the allotment, any discriminatory treatment would be called into question.
Otherwise the action is perfectly ok.
R.Ramachandran
(Expert) 09 August 2011
The action of the organization is perfectly OK.
On one hand the organization spends huge amounts in constructing the accommodation. On the other if the employees do not take the accommodation, the accommodation would remain unutilised, whereas the organization has to spend in giving HRA. Therefore, HRA is permissible only in those cases where the accommodation has not been made available. However, there should be some clear policy in relation to allotting the accommodation. It should not be that the allotment is done in a pick and choose manner thereby meting out discriminatory treatment between similarly placed persons. If that happens, then that action can be called in to question. Otherwise, the action of the Organization cannot be faltered.
Querist :
Anonymous
(Querist) 09 August 2011
Earlier House Owning officers were not eligible for allotment of Govt. houses. But now they are also eligible for allotment. Is it applicable to them also ? Prior to above OM this was not there. Is there any second opinion. There is no pick and choose policy. These are Govt. of India quarters.
Ajay Bansal
(Expert) 09 August 2011
Your organization is still doing no wrong.
mahendrakumar
(Expert) 09 August 2011
HRA is not a right. It is given in lieu of an accommodation.
as such,when an accommodation is given by the employer,one cannot claim HRA.
Querist :
Anonymous
(Querist) 09 August 2011
Accommadation is available for allotment but the employee is not willing to take it and wants that he should continue to get HRA.
K.S.Srinivas
(Expert) 09 August 2011
It is not the employee to choose the option of occupying the quarter or reject the allotment. As per government rules, once the quarter is allotted, the payment of HRA shall be stopped.
