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Wednesday, March 24, 2010

'Govt employee has fundamental right to be considered for promotion'

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'Govt employee has fundamental right to be considered for promotion'

The Supreme Court has ruled that a Government employee has a fundamental right to be considered for promotion and it is mandatory for the Centre and States to carry out cadre review of eligible officers for promotion to the Indian Administrative Service (IAS).

"The right of eligible employees to be considered for promotion is virtually a part of their fundamental right guaranteed under Article 16(Equality of opportunity in matter of public employment) of the Constitution," a bench comprising Justices R V Raveendran and A K Ganguly held in a recent judgement.

The apex court passed the judgement while directing the Centre and the UP Government to consider the promotion of two State cadre officers-Hemraj Singh Chauhan and Ramnawal Singh to the IAS.

"We hold that the statutory duty which is cast on the State Government and the Central Government to undertake the cadre review exercise every five years is ordinarily mandatory subject to exceptions which may be justified in the facts of a given case," the bench said.

Source: Indian Express

Five smart ways to use your bonus, DA windfall

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Five smart ways to use your bonus, DA windfall

Last week, the Union Cabinet provided relief to over five million central government employees by increasing the dearness allowance (DA) from 27 per cent to 35 per cent. It also increased the dearness relief (DR) for pensioners by 8 per cent.

These amounts will be paid to employees and pensioners with retrospective effect, from January 2010. DA is calculated as a percentage of basic salary; DR is a percentage of basic pension, based on the cost of living index.

Windfall gains are easier to dream about than manage. Here is some advice on using the money:

Clear or reduce liabilities: Start with retiring high-cost credit card dues and personal loans. Even if you can't clear the entire debt in one go, start the process.

Interest on credit card loans can be as high as 40-50 per cent a year and on personal loans between 12 per cent and 30 per cent.

Govind Pathak, director, Acorn Wealth, said: "A home loan is the only one that can be continued because of the tax benefits it provides."

Purchase medical insurance: Even if you have a company-provided plan, it makes sense to have an additional policy "Take a health plan when you are between 40 and 50 so that it runs after your retirement too," added Pathak.

Start investing for a corpus: Use the amount to start investing through systematic investment plans of mutual funds. Even if you make a small start, savings over a long period can be substantial because of compounding of investments. Equity diversified funds should be the way to go. If it is a large sum, use the systematic transfer plan route.

Anil Rego, CEO, Right Horizons, said: "Pensioners should invest to build an emergency kitty for medical purposes."

Debt is a good option: Those nearing retirement should opt for debt, as protecting the capital with stable returns is of prime importance. Use monthly income plans that work like debt-oriented balanced funds. These invest only 20 per cent of the money in equities.

Taxation: Homi Mistry, tax partner, Deloitte, Haskins and Sells, said: "The employer is liable to tax the employee at source at the time of making the payment. If arrears paid in a relevant year are not taxed in the earlier year, the employee will be taxed in the year the payment is made."

Therefore, the government will deduct tax at source when the amount is paid in April.

For pensioners, the tax will depend on the total income, including the pension amount and income from other sources. Also, the exemption limit of Rs 2.4 lakh (Rs 240,000) is available only to those above the age of 65. Not to forget that if the tax is deducted at source, it will be on the basis of the old tax slab.
Source: Rediff Business

Govt signs pact with Apollo for dialysis clinic

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CENTRAL GOVERNMENT HEALTH SCHEME

Govt signs pact with Apollo for dialysis clinic

The Government has signed an agreement with the prestigious Apollo Hospital to set up a Hemodialysis unit in the city where its employees can avail state-of-the-art dialysis facility.

Alliance Medicorp Limited (AML), a unit of of Apollo Hospitals Group, has signed a MoU with the Central Government to set up the 'CGHS-Apollo Dialysis' clinic.

"Apollo Hospitals Group is pleased to be associated with the Central Government to launch the first Dialysis Centre in Delhi. This Public-Private Partnership model can help bridge the gap and make world-class services available to CGHS Beneficiaries," Dr Prathap C Reddy, Chairman, Apollo Hospitals Group, said.

"We are also exploring similar PPP opportunities with other state governments," he said.

The set up, which is expected to be functional by June this year, will come up at the CGHS Wellness Centre in Sadik Nagar.

Don't dismiss personnel while appeal is pending: CAT

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CENTRAL ADMINISTRATIVE TRIBUNAL:

Don't dismiss personnel while appeal is pending:

The Central Administrative Tribunal (CAT) has advised the Delhi Police against terminating services of personnel who are already convicted for an offence but whose appeals are still pending before higher courts.

The Tribunal passed the order while giving relief to a former Delhi Police constable, convicted in 2007 by a lower court but was granted bail by the Delhi High Court in 2009.

"Normally, a person who is undergoing imprisonment, will not be entitled to get reinstatement, as the two concepts do not go together. But that does not automatically mean that the Deputy Commissioner or Joint Commissioner were within their rights, to pass orders terminating the services of the applicant on the basis of the conviction, when an appeal was pending before the High Court," the Tribunal said.



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