Breaking: Punjab begins process to implement HC’s DA order; Finance Dept nod mandatory before release
Ravi Jakhu
Chandigarh, August 17, 2026: The Punjab government has begun the process of implementing the Punjab and Haryana High Court’s order on payment of pending Dearness Allowance (DA) arrears, but has made it clear that no payment or settlement can be made without prior approval from the state Finance Department.
In an order issued on August 17, the Finance Department directed all government departments, Boards and Corporations in Punjab to process and settle cases at different levels in accordance with the High Court’s decision. At the same time, it stipulated that no such order shall be implemented and no payment or settlement made without the Finance Department’s prior concurrence.
The development comes days after a Division Bench of the Punjab and Haryana High Court, headed by the Acting Chief Justice, dismissed the Punjab Government’s appeal on August 3 and directed the state to clear the pending DA arrears within 15 days.
The High Court’s order is estimated to involve a liability of around Rs 14,191 crore towards DA arrears of eligible government employees and pensioners.
Following the verdict, Punjab Finance Minister Harpal Singh Cheema had said that the government would take a decision after examining the judgment from the legal perspective.
Meanwhile, employees have also filed a caveat in the Supreme Court, anticipating the possibility of the Punjab Government challenging the High Court order. The caveat seeks to ensure that no order is passed in the matter without giving the employees an opportunity to be heard.
The government is also facing a much larger financial burden when other pending employee-related dues are taken into account. Cheema has indicated that the total outstanding dues, including liabilities carried forward from the previous two governments, amount to around Rs 21,000 crore.