Remain personally present till retiree benefits case resolved: Telangana HC to Fin Secy Sultania

Hyderabad: Seemingly angry over the denial of retirement benefits to 764 former employees, the Telangana High Court has directed Finance Secretary Sandeep Kumar Sultania to remain present in court for every single hearing if the issue is not resolved.

Hearing a batch of contempt petitions on Thursday, Justice Namavarapu Rajeshwar Rao directed the government to submit a case-wise compliance report by the next hearing.

The court warned that if the state fails to prove full payment to every individual petitioner, the Principal Secretary of the Finance Department, Sandeep Kumar Sultania, will be required to personally appear in court for every hearing moving forward.

The Court Proceedings

The directive came after the Government Pleader for Finance reported that the state had begun clearing bills, but only 221 out of the 764 retirees in this batch had seen their claims processed so far.

The court noted with concern that while some received full payments, others were only given partial dues, despite a clear judicial mandate for full settlement. "Documented proof of satisfaction for every individual claim is a necessity," Justice Rao emphasized, rejecting vague oral submissions about "ongoing processes."

The matter has now been adjourned to June 10, 2026, for the submission of the final compliance report.

A "Humanitarian Crisis" of delayed dues

The current legal battle is the climax of a years-long struggle for thousands of retired state employees. Here is the context behind the pending dues:

The 2024 Retirement Surge: Following the 2021 decision to raise the retirement age to 61, a massive wave of employees began retiring in March 2024. However, thousands found themselves left in the lurch without their statutory terminal benefits—including gratuity, provident fund, and encashment of earned leaves.

Systemic Neglect: An estimated 15,000 employees retired between 2024 and 2025, many of whom have waited over 24 months for their money. Reports submitted to the court earlier this year revealed that nearly 85 retired employees died while waiting for their dues, never seeing the money they earned over decades of service.

Failed Deadlines: The High Court had previously ordered the state to clear all dues within 10 weeks. When that deadline passed, over 600 contempt petitions were filed. In March 2026, the court set a "final" deadline of April 9, but the state has only managed to clear approximately one-third of the contested cases.

The Financial Strain: While the state government cited budgetary constraints and assembly sessions as reasons for the delay, the Court has remained firm, famously telling the Finance Secretary: "It is their own money, not the government's money. You must give them their money."