HRA for Working Couple

Allahabad HC-Payment of House Rent Allowance (HRA) to both
the Spouses Residing together is a Pure Matter of Financial
Policy and is Legal |17-08-2015|
ALLOWS hra TO BOTH SPOUSE…
Anyone has infor about Madhya pradesh pl help…
In an important judgment, Allahabad High Court has ruled that there is no illegality in the
State Government Order dated 11 February 2015 allowing grant of house rent allowance
where both the spouses are employees of the State and are residing together in one
accommodation.
The high Court held that Spouses who are posted together and where both are employed in
the service of the State should not be placed at a comparative disadvantage merely
because both of them are employees of the State and being married, reside together in one
accommodation and whether both the spouses should be entitled to HRA or otherwise is a
pure matter of financial policy.
Case Details:
Public Interest Litigation (PIL) No. 29913/2015
Bhim Singh Sagar ( Petitioner) vs State Of U.P. & 5 Others (Respondent)
Coram: Dr. Dhananjaya Yeshwant Chandrachud Chief Justice and Justice Yashwant Varma
Date of Order: 11/08/2015
Text of the Judgment is as under:
Invoking the jurisdiction in a PIL, the petitioner has challenged the legality of a Government
Order dated 11 February 2015 regulating the payment of house rent allowance where both the
spouses are employees of the State and are residing together in one accommodation either
owned or rented. Prior to the issuance of the Government Order, there were earlier
Government Orders dated 15 December 1981, 28 February 1984 and 28 April 2000 which
stipulated that where both the spouses are employees of the State
and reside together in one accommodation, house rent allowance
would be allowable to one of the spouses. This regime has now
been altered by the Government Order dated 11 February 2015
which stipulates that though both the spouses may be residing
together in the same accommodation, each of them would be
entitled to the payment of house rent allowance as allowable to
them under their respective entitlements in service. This was
sought to be challenged by the petitioner on the ground that it imposes a heavy burden on the State exchequer.
The second prayer by the petitioner in these proceedings is for a direction to the State to effect recoveries from
its employees for the period prior to 11 February 2015 where the house rent allowance was claimed by both the
spouses who are employees of the State and reside in the same accommodation.
In response to the petition, a counter affidavit has been filed by the Principal Secretary, Finance to explain the
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genesis of the Government Order dated 11 February 2015. Employees of the Union Government who are
engaged in an All India Service are governed by the All India Services (House Rent Allowance) Rules, 1977. On 8
November 1988, the Union Government in the Ministry of Finance issued an office memorandum clarifying the
position in regard to whether house rent allowance would be allowable where both the spouses are in an All India
Service under the Union Government and reside in the same accommodation. A policy decision was taken by the
Union Government that no restriction should be imposed on the claim of the normal house rent allowance by
each of the spouses who happens to be a member of an All India Service merely because they reside together in
the same accommodation. The memorandum, insofar as is material is extracted hereinbelow:
“Subject:- Drawal of House Rent Allowance by husband and wife when both of them happen to be Govt. servants
and are living in hired/owned accommodation- Clarification regarding—
The undersigned is directed to say that pursuant to revision of rates of HRA on the basis of recommendations of
the 4th Pay Commission clarifications were being sought from this Ministry by Ministry of Railways etc. regarding
admissibility of house rent allowance to husband and wife when both of them happen to be Govt. servants. After
having the matter considered in consultation with Staff Side of the National Council (JCM) the President is
pleased to decide that no restriction should be imposed only on the ground that husband/wife is also a Govt.
servant and is living together in the hired/owned accommodation. In such cases normal amount of HRA may be
granted to them as per their entitlement subject to fulfillment of other conditions for drawal of the allowance.
2. In so far as the persons serving in the Indian Audit and Accounts Department are concerned, these orders
issue after consultation with the Comptroller and Auditor General of India.”
Though the Union Government had taken this policy decision on 8 November 1988, the State Government took a
rather long period of time to decide upon the admissibility of house rent allowance to both spouses when they
happen to be government servants and are living together in hired or, as the case may be, owned
accommodation. On 7 March 1996, the State Government issued an office memorandum clarifying that where
both spouses are officers of an All India Service but are deputed to the State Government, each of them would be
entitled to their normal HRA as allowable under Rules though they may be residing in the same accommodation.
The rationale for this was explained in paragraph-4 of the memorandum. It appears that in a situation where
official accommodation was not provided, the State was liable to pay at a higher rate over and above the house
rent allowance and it was, therefore, clarified that while both spouses would be entitled to HRA under each of
their applicable entitlements, the additional amount would not be paid. This office memorandum of the State
Government dated 7 March 1996 governed employees of All India Services who are deputed to the service of the
State.
Ultimately, the State Government has now taken a policy decision which is reflected in its circular dated 11
February 2015 to govern the employees of the State Government. The circular now clarifies that while both the
spouses may be residing together in the same accommodation, owned or rented, each of them would be entitled
to payment of house rent allowance as allowable under their Service Rules.
These are evidently matters of financial policy. If each of the spouses who is an employee of the State is posted
to a different location, it cannot be denied that both would be entitled to the payment of house rent allowance
subject to compliance with other requirements. The State Government has now taken a policy decision that
spouses who are posted together and are living in one and in the same accommodation should not be deprived
of the normal HRA allowable to each of them.
We see no reason to intervene in such a determination. There is no illegality in making such a determination.
Spouses who are posted together and where both are employed in the service of the State should not be placed
at a comparative disadvantage merely because both of them are employees of the State and being married,
reside together in one accommodation. Whether both the spouses should be entitled to HRA or otherwise is a
pure matter of financial policy. As the Principal Secretary, Finance has clarified, the State Government does
consider genuine demands of employees raised from time to time subject to the requirement of meeting the
expenditure from the exchequer. The fact that a demand is in conformity with a decision which has already been
taken by the Union Government in respect of Central Government employees could have weighed with the State
Government in taking a similar decision applicable to the employees of the State. Hence, we find no illegality in
that decision.

Please clarify whether a State Govt. Employee(WB) get HRA if his / her spouse works in a private company?

Thanks for your prompt reply. This order is not available in wbfin.nic.in. Please help.