The Sindh High Court (SHC) Hyderabad Circuit Bench has granted the Hyderabad Development Authority (HDA) a conditional one-month extension to pay all outstanding pensions to its retired employees.
The court directed HDA director general to issue post-dated cheques to all retirees of the authority for November 5. The bench warned that failure to comply by November 5 would result in an FIR against the DG of HDA and the immediate dismissal of the deputy director of finance.
The dues will be paid from the pension funds deposited with the National Saving Bank. The authority, despite having liquidity to pay the pensions, had deposited the sum in saving schemes to earn interest, while pensioners run from poll to post get their dues.
The bench, comprising Justice Abdul Mubeen Lakho and Justice Arbab Ali Hakro, was hearing two constitutional petitions filed by retired HDA employees, including Muhammad Younus and Qaiser Ahmed, over non-payment of their pensions. The petitioners informed the court that 13 months of pensions were pending; only one month's payment had been released three days earlier, while 12 months' dues were still unpaid. They argued that the HDA had no justification for withholding payments since the employees' pension contribution certificates worth over Rs310 million were safely deposited in the National Savings Bank.
Expressing strong displeasure, the court noted that using employees' funds in profit-generating schemes was illegal. When asked about this practice, the DG told the court that he had assumed charge recently and the deposits predated his tenure. The court rebuked him, saying he was responsible for reviewing and correcting irregularities upon taking office.
The court summoned Deputy Director Finance Abdul Qadeer, who appeared in person. When questioned about the legality of investing pension funds, he failed to provide satisfactory answers, prompting the judges to remark that his employment could be terminated immediately. He claimed that the certificates were invested three years ago before his posting, but the judges pointed out that he still had not ensured liquidation of those funds for pensioners.
The DG then assured the court that the certificates would be encashed and payments made to pensioners. When asked how long the process would take, he requested one month, while HDA's counsel said at least 15 days were required to complete the legal and banking procedures, including depositing payments directly into pensioners' accounts. After deliberation, the court granted a 30-day conditional extension, directing the DG to issue post-dated cheques dated November 5 to all retirees, equal to their pending pension amounts. Each cheque must be accompanied by an affidavit from the pensioners stating that they would return the cheques once their payments are credited.
The judges made it clear that if the HDA fails to fulfill this commitment within the given timeframe, the court will order the registration of an FIR against the DG and terminate the Deputy Director of Finance for negligence and contempt.
The order came after months of frustration among retired HDA staff who claim that despite government allocations, their dues have been unlawfully delayed. One of the petitioners, Nasir Kazmi, later shared an audio message detailing the court proceedings with other retired employees, many of whom had attended the hearing alongside their lawyers.
The court's stern warning has now put the HDA management under intense pressure to resolve the long-standing pension crisis within the next 30 days or face legal and administrative consequences.
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