Confederation writes to Finance Ministry regarding Transport Allowance

Confederation writes to Finance Ministry regarding Transport Allowance to regulate to Faridabad Gurgaon, Ghaziabad and Nodia cities at par with Delhi rates


1st Floor, North Avenue PO Building, New Delhi – 110001
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Secretary General



Ref: Conf/Genl/2014

Dated – 26.08.2014

The Secretary
Ministry of Finance
Department of Expenditure
New Delhi – 110001

Sub: Regulation of Transport Allowance at Faridabad Gurgaon, Ghaziabad and Nodia at par with Delhi rates.

Your kind attention is invited to the OM No. 21(8)2010-E-II (B) dated 01.08.2012 of Ministry of Finance, Department of Expenditure regarding regulation of Transport Allowance at Faridabad, Gurgaon, Ghziabad and Noida wherein instructions have been issued to regulate the Transport Allowance at the rates applicable to ‘Other Cities’ i.e other than 13 classified cities as per the condition laid down in OM no. 21(2)12008-E-II (B) dated 29.08.2008. Issuance of the OM has created panics among the employees posted at these cities. Immediate action is required to be taken to avoid implementation of the OM.

In this connection following points are brought to your kind notice —
1. Ministry of Finance, Department of Expenditure had issued OM 2(4)-E.II (B)/65 dated 05.11.1974 vide which special dispensation was given to Faridabad at Delhi rates in respect of CCA & H RA.

2. 5th Central Pay Commission had made recommendations to grant of transport allowance to Central Government employees to compensate the cost incurred on commuting between the place of residence and the place of duty. Transport allowance was implemented vide 0M No. — 1(13)97-E-Il (B) dated 03.10.1997, according to which, transport allowance was to be regulated on the basis of classification of cities for the purpose of CCA. Para 3.1 of said order Is reproduced below-

The cities referred to as ‘A’ and ‘A-1’ in these orders shall be the same as those classified as such for the purpose of Compensatory (City) Allowance (CCA) in terms of the orders issued separately regulating grant of CCA to the Central Government employees.

3. Vide para 4.2 8, 6 CPC had recommended abolition of CCA and increased the rates of transport allowance subsuming the element of CCA. The abolition of CCA was compensated by increasing the rates of transport allowance.


4. Faridabad has been given the status of A-1 city (as being part of the Urban Agglomerate of Delhiat par with NOIDA, Ghazia bad and Gurgan etc.) since 1974 for the purposes of HRA & CCA and since August, 1997 for the purpose of transport allowance as given above. These facilities are being extended to the Central Government employees/officers posted at Faridabad accordingly.

5. It may further be noted that, Ministry of Finance, vide No. 21 (2)/2008-E.ll dated 29.08.2008 has classified 13 cities as A-I/A which, inter-alia, includes Delhi (UA). Delhi (Urban Agglomerate) includes Faridabad, Ghaziabad, Noida & Gurgaon As such, the rates of Transport Allowance admissible for the City of Delhi, automatically stands extended to the other constituents of the Urban Agglomerate.

6. If rate of the transport allowance is reduced the rate payable to other cities, employees posted at Faridabad, Ghaziabad, Noida & Gurgaon will be deceived from the benefit given by the 6th CPC by subsuming the element of CCA in transport allowance as they were being paid CCA at Delhi rates.

7. In view of the above, it reveals that the transport allowance was being regulated on the basis of classification of cities for the purpose of CCA and payment of transport allowance at Delhi rates, to the employees posted at Faridabad is fully justified. This stands already concluded by the orders and judgments of the Hon’ble CAT Principal Bench, New Delhi (copy enclosed for ready reference) as given below-

1) OA No. 483/2005, Judgment dated 16.09.2005.

2) OA No. 2441/2005, Judgment dated 02.08,2006

3) RA No. 296/2010, Judgment dated 14.01.2011.

4) OA No. 368/2011, Judgment dated 21.07.2011.

5) OA no. 459/2011, Judgment dated 05.08.2011.

6) CP No. 302/2011, Judgment dated 30.03.2011.

8. These judgments squarely covers this issue wherein the Hon’ble CAT, Principal Bench, New Delhi had upheld the payment of Transport Allowance at par with Delhi (UA) and the said judgments were accepted by the Government and duly implemented. It appears that the Department of Expenditure has not noticed the above judicial pronouncement and issued the clarification vide OM dated 1” August, 2012, which seem to be in contravention of the directions of the Hon’ble CAT.

It is therefore, requested to kindly take cognizance of the facts and particularly the binding judgments of the Hon’bel CAT, New Delhi as mentioned above to withdraw the latest instructions issued vide ID No. 21 (8)12010-E-Il (B) dated 01.08.2012 for reducing the Transport Allowance on par with “Other Cities”.

An early action ¡n this regard is highly solicited.

DA: as above

Yours faithfully,

(M. Krishnan)

Secretary General

Copy to: –
Corn, N. Somaiah, Vice President, Confederation of Central Government Employees & Workers c/o
Takshasila Vidyapeetham, Dasaigudam Road Shantinagar, Suryapet Dist. Nalgonda (A.P).


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