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File No. 38020/1/2019-FC-3 (Computer No.
368673 ) 1
Note No. #1
No.38020/1/2019-FC-3
Government of India
Ministry of Consumer Affairs, Food & Public Distribution
Department of Food & Public Distribution
******
Subject: Revision/ rationalization/ consolidation of Pension/ family Pension

in respect of IDA employees/ Food Transferee.
FR is an letter No. WRC/39/1/2019 dated 25.07.2019 received from FCI

on the subject cited above. In this regard, FCI has informed that the pay
scale in respect of Executives i.e. Cat-I & II on IDA pattern w.e.f
01.01.2017 vide circular no. WR-09-2018-10 dated 29.06.2019 and pay
revision of Cat-III & IV is under consideration at Ministry level.
2. FCI has requested that appropriate guidelines/ instructions be issued to

the Controller of Accounts and concerned Pay & Accounts offices for
necessary revisions of pension / family pension /DCRG in respect of IDA
employees who had exercised their option under section 12-A of FC Act-
1964, to be governed by retirement benefits (pension) as admissible to
central govt employees:
i. for determination of emoluments for the purpose of retirement

benefits like pension , family pension and DCRG in respect of executive
/staff on IDA pattern retired/retiring on/after 01.01.2017
ii. For rationalization/consolidation of pension /Family Pension in case of

retirees deceased prior to 01.01.2017, keeping in view the fitment factor
of 15% of basic pay as allowed for serving executives for fixation of pay in
the revised scale .
iii. For dearness relief on such revised pension /family pension
3. As discussed with Director (FC-III), we may request FCI to forward a

detailed proposal for consideration of the same in this Department.
Further, on receipt of the same, this Department may examine the
proposal and decide with the approval of competent authority. It may be
mentioned that the same has been informed to FCI telephonically.
4. Accordingly, file is put up as per DFA please.
Generated from eOffice by TANU SARDANA, ASST SECTION OFFICER, Department Of Food and Public Distribution on 19/04/21 03:26 PM
File No. 38020/1/2019-FC-3 (Computer No. 368673 ) 2
16/08/2019 5:14 PM
TANU SARDANA
(ASST SECTION OFFICER)
Note No. #2
16/08/2019 5:15 PM
VARSHA SHALINI
(SO(FC-II & III))
Note No. #3
19/08/2019 9:45 AM
KARMVIR SINGH
(DIR(FC-III))
Note No. #4
19/08/2019 10:29 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #5
19/08/2019 11:57 AM
VARSHA SHALINI
(SO(FC-II & III))
Note No. #6
This is regarding Revision/ rationalization/ consolidation of Pension/ family

Pension in respect of IDA employees/ Food Transferee.
2. FR is a representation received from FCI Retired Employees Association

dated 14.10.2019 regarding revision/ rationalization/ consolidation of Pension Family
pension of Pre- January 2017 retired category I,II, III & IV employees( Food
Transferees) of FCI on the IDA scales of Pay, who are getting their pension with IDA
as well with CDA due to switching over by some of them subsequently to CDA from
IDA as per supreme courts decision dated 10.02.2010 in Civil Appeal No. 238-244 of
2004 Union of India vs P.N.Natrajan & others.
2. In this regard, it may be informed that this Department vide letter dated
16.08.2019 requested FCI to forward a detailed proposal on the above subject.
However, no information has been received from FCI so far.
3. Since, the pay revision of Category I,II,III & IV employees of FCI w.e.f.
01.01.2017 has almost been finalized, this Department again request FCI to send a
detailed proposal immediately as per DFA please.
04/11/2019 3:37 PM
TANU SARDANA
Note No. #7
04/11/2019 3:46 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #8
04/11/2019 4:38 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #9
04/11/2019 5:11 PM
KARMVIR SINGH
(DIR(FC-III))
Note No. #10
05/11/2019 12:55 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #11
05/11/2019 3:00 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #12
Ref Note#6 may please be seen
We may send a reminder to FCI to send a detailed proposal immediately

as per DFA please.
04/12/2019 11:57 AM
TANU SARDANA
Note No. #13
04/12/2019 12:01 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #14
04/12/2019 4:45 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #15
04/12/2019 5:26 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #16

2. In this regard, FCI vide Letter No. WRC/39/1/2019 dated 25.07.2019

requested this Department to issue appropriate guidelines/ instructions to the
Controller of Accounts and concerned Pay & Accounts offices for necessary revisions
of pension / family pension /DCRG in respect of IDA employees who had exercised
their option under section 12-A of FC Act-1964, to be governed by retirement
benefits(pension) as admissible to central govt. employees:
i. For determination of emoluments for the purpose of retirement benefits

like pension, family pension and DCRG in respect of executive /staff on
IDA pattern retired/retiring on/after 01.01.2017.
ii. For rationalization/consolidation of pension /Family Pension in case of

retirees deceased prior to 01.01.2017, keeping in view the fitment factor
of 15% of basic pay as allowed for serving executives for fixation of pay in
the revised scale .
iii. For dearness relief on such revised pension /family pension
3. This Department vide Letters dated 16.08.2019 and 05.11.2019 requested

FCI to provide a detailed proposal to this Department. In response, FCI vide Letter
No. WRC/39/1/2019 dated 06.12.2019 has submitted a detailed proposal on the
above subject.
4. In this connection, FCI has informed that a committee was constituted to

examine the matter and submit recommendation thereof. Accordingly, the committee
deliberated on the issue and submitted its report which may be seen at Pg
25-29/C. The committee opined that
".....In view of the judgment of Supreme Court, Madras High Court and Ministry letter
dated 19.3.2019, Food Transferees are entitled for benefits under CDA pattern from
the date from which IDA pattern was made applicable to them as well as pension pay
be revised as per CDA pattern and benefits of protection of pension along with other
benefits may also be granted to the pensioner covered under the order dated
10.02.2010 of Hon'ble supreme court and other similarly situated persons.”
5. Thus, as per the recommendation of the committee, Basic pension may be

Revised from the date from which lDA pattern was made applicable to Food
Transferees by protecting their pension. The revision may be carried out by Applying
pay fixation formula as applicable for CDA pay pattern employees. Further, the
benefits as applicable to CDA pay pattern employees may be extended to them
including Dearness relief i.e. CDR. This will be in consonance with the Chief
controller of Accounts, MoCA,F&PD, Delhi direction to issue instructions for revision
of pay and pension as per 7 th CPC (Copy Enclosed)' Further' once the basic pay is
fixed, the existing pensioner may be regulated as per instructions/guidelines issued
by Govt. of India from time to time, (As has been circulated for implementation of
revision of pension of pre-2016 pensioner/family pensioners vide FCI circular no.
WR-08-2017-09 dated 06.09.2017(Pg 33/C).
6. Alternatively, Pension may be revised w.e.f 01.01.2016 by applying pay

fixation formula as applicable for CDA pay pattern employees along with protection of
pension as on 31.12.2015 Further, the benefits as applicable to CDA pay pattern
employees may be extended to them including Dearness relief i.e CDR
w.e.f.01.01.2016. Further, once the basic pay is fixed, the existing pensioner may be
regulated as per instructions/guidelines issued by Govt. of India from time to time.
(As has been circulated for implementation of revision of pension of pre-2016
pensioner/family pensioners vide FCI circular no. WR-08-2017-09 dated 06.09.2017.)
7. Further, attention is invited to legal opinion tendered by legal division of this

office, wherein it has been opined that application of the instructions of Ministry
contained in letter dated 19.03.2019, may tantamount to altering the current benefits
under IDA by virtue of the statutory option under section 12 A of the FCI Act to that of
CDA, of course by protecting the pension, if so, attention is invited to the judgment of
Hon'ble Supreme Court in the matter of Union of India & Anr. Vs. P.N. Natarajan and
ors, where in it is observed that "The Central Govt. did not have the jurisdiction to
unilaterally alter/change the option exercised by the writ petitioners under section
12A (48) read with section 12A(4C)." Therefore, a notice has to be given to each
pensioner intimating the pension determination as per CDA pattern.
8. File is submitted for information and kind consideration please.
16/12/2019 12:10 PM
TANU SARDANA
Note No. #17
16/12/2019 12:54 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #18
23/12/2019 9:54 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #19
23/12/2019 1:38 PM
KARMVIR SINGH
(DIR(FC-III))
Note No. #20
Please put up through AS Sh. Majhi.
03/02/2020 10:32 AM
Nandita Gupta
(JOINT SECRETARY)
Note No. #21
11/02/2020 10:17 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #22
pl discuss
11/02/2020 11:19 AM
KARMVIR SINGH
(DIR(FC-III))
Note No. #23
Ref: Above Notes.
FCI (p.1/c) has requested that appropriate guidelines/ instructions be

issued for necessary revisions of pension / family pension /DCRG in
respect of IDA employees who had exercised their option under section
12-A of FC Act-1964, to be governed by retirement benefits (pension) as
admissible to central govt employees:
i. for determination of emoluments for the purpose of retirement

benefits like pension, family pension and DCRG in respect of executive
/staff on IDA pattern retired/retiring on/after 01.01.2017.
ii. For rationalization/consolidation of pension /Family Pension in case

of retirees deceased prior to 01.01.2017, keeping in view the fitment
factor of 15% of basic pay as allowed for serving executives for fixation of
pay in the revised scale.
iii. For dearness relief on such revised pension /family pension.
2. Further, FCI mentioned that pay revision of Category-III & IV

employees is under process in the Ministry (p.1/c).
3. Vide letter dated 17.7.2017(p.32/c ), our PAO, O/o CCA, DFPD, M/o
CA & FPD, Jeevan Deep Building New Delhi has requested Regional
Director (Food), HQ, FCI, New Delhi to issue necessary instruction to get
the pay and pension revised as per 7 th CPC(as done in 1992, 1997 &
2007 by FCI) in respect of Food Transferee pensioners/family pensioners
of pre-2016 who were drawing Industrial pay as per Industrial Wage
Structure and Pension & DR as per CCS Pension Rules.
4. Further, attention is invited to legal opinion tendered by legal division of FCI

office(p. 23-24/c), wherein it has been opined that application of the instructions
of Ministry contained in letter dated 19.03.2019, may tantamount to altering the
current benefits under IDA by virtue of the statutory option under section 12 A of
the FCI Act to that of CDA, of course by protecting the pension, if so, attention is
invited to the judgment of Hon'ble Supreme Court in the matter of Union of India
& Anr. Vs. P.N. Natarajan and ors, where in it is observed that "The Central
Govt. did not have the jurisdiction to unilaterally alter/change the option
exercised by the writ petitioners under section 12A (48) read with section
12A(4C)." Therefore, a notice has to be given to each pensioner intimating the
pension determination as per CDA pattern.
5. In views of the above, we may inform the FCI that the approval of the
Competent Authority on the proposal for revision of pay scale, allowances
and fringe benefits of Category-III & IV employees on Industrial dearness
allowance pattern for the period from 01.01.2017 to 31.12.2016 vide their
letter No. 17012/5/2017-FC-III dated 07.08.2019(p.35-36/c) has been
conveyed.
6. As requested by our PAO, O/o CCA, DFPD, M/o CA & FPD vide its
letter dated 17.7.2017(p.32/c), we may request the Regional Director
(Food), HQ, FCI, New Delhi to issue necessary instruction to get the
pay and pension revised as per 7 th CPC(as done in 1992, 1997 & 2007 by
FCI) in respect of Food Transferee pensioners/family pensioners of pre-
2016 who were drawing Industrial pay as per Industrial Wage Structure
and Pension & DR as per CCS Pension Rules.
7. Whereas the views of FCI Legal Division is concerned as mentioned at

para 4 above, we may have no objection as it is observation of the
Hon’ble court. In compliance of the judgment of Hon’ble Madras High
court dated 01.10.2019, this department has already issue necessary
directions/clarification vide our letter No. 18011/27/2018-FC-3 dated
19.3.2019(p.30-31/c ).
As mentioned at para 5,6 and 7 above, a draft has been

attempted to convey the same to FCI for information and take necessary
action in this regard. Submitted for kind consideration/approval pl.
21/02/2020 1:16 PM
GAUTAM KUMAR YADAV
(US(PY2))
Note No. #24
21/02/2020 2:08 PM
KARMVIR SINGH
(DIR(FC-III))
Note No. #25
Pl. discuss on 26-02-2020.
21/02/2020 3:54 PM
Edwin Kulbhushan Majhi
(ADDITIONAL SECRETARY)
Note No. #26
21/02/2020 4:49 PM
KARMVIR SINGH
(DIR(FC-III))
Note No. #27
Discussed. Pl. ask for financial implication of the proposal and also ask whether
the proposal is in consonance with the judgment of Hon'ble High Court, Madras.
26/02/2020 12:37 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #28
26/02/2020 12:52 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #29
Ref note#27 may please be seen
As per remarks of US(FC-III), mail dated 26.02.2020 sent to FCI

for seeking information on financial implication of the proposal and also
ask whether the proposal is in consonance with the judgment of Hon'ble
High Court, Madras.
27/02/2020 12:18 PM
TANU SARDANA
Note No. #30
27/02/2020 3:58 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #31
Seen.
27/02/2020 4:28 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #32
27/02/2020 5:22 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #33
As per remarks of US(FC-III) at Note#27 , mails dated 26.02.2020 and

03.03.2020 was sent to FCI for seeking information on financial
implication of the proposal and also ask whether the proposal is in
consonance with the judgment of Hon'ble High Court, Madras . However,
the same is not furnished by FCI so far.
2. We may send a reminder to FCI requesting to furnish the same as

per DFA please.
11/03/2020 12:46 PM
TANU SARDANA
Note No. #34
11/03/2020 3:13 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #35
11/03/2020 3:58 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #36
12/03/2020 11:30 AM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #37
Ref Note#33 may please be seen
This Department letters dated 12.03.2020 and e-mails dated 26.02.2020,

03.03.2020 and 12.05.2020 requested FCI to furnish information to this Department
regarding the financial implication of the proposal and to inform whether the proposal
is in consonance with the judgement of Hon'ble High court of Madras as per the
discussion held in the chamber of Director (FC-III) on 26.02.2020 with FCI
officers/officials. However, no information has been received from FCI so far.
2. We may remind FCI to furnish information to this Department as per DFA

please.
27/05/2020 3:03 PM
TANU SARDANA
Note No. #38
28/05/2020 2:24 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #39
Sub: Revision/ rationalization/ consolidation of Pension/ family

This Department letters dated 12.03.2020

and reminders dated 26.02.2020, 03.03.2020 and 12.05.2020,
28.05.2020 requested FCI to furnish information to this Department
regarding the financial implication of the proposal and to inform whether
the proposal is in consonance with the judgement of Hon'ble High court of
Madras as per the discussion held in the chamber of Director (FC-III) on
26.02.2020 with FCI officers/officials. However, no information has been
received from FCI so far.
2. We may remind FCI to furnish information to this Department

as per DFA please.
11/06/2020 3:46 PM
TANU SARDANA
Note No. #40
12/06/2020 9:59 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #41
reminder may by issued and VC may be arranged with concerned GM, if reply is
not received within 5 days time. include this in DFA and inform date of VC.
12/06/2020 1:06 PM
RAKESH KUMAR MEENA
(DIRECTOR(PY-II, PY-III & FC-III))
Note No. #42
12/06/2020 4:38 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #43
Revision/ rationalization/ consolidation of

Sub: Pension/ family
With Ref to Note#41 please give direction in the above matter.
24/06/2020 7:14 PM
TANU SARDANA
Note No. #44
May like to talk, Mr. D. K. Yadav, GM(PE), FCI pl.
25/06/2020 10:20 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #45
pl connect call in my office to GM concerned on 26.06.
25/06/2020 4:03 PM
RAKESH KUMAR MEENA
Note No. #46
Director(Py-II and FC-3) talked to GM(PE), FCI, HQ, New Delhi on the issue on
26.06.2020.
29/06/2020 12:06 PM
GAUTAM KUMAR YADAV

(US(FC-III))
Note No. #47
Sub: Revision/rationalization/consolidation of pension / family pension in

respect of IDA employees/Food Transferee
As per remarks of US(FC-III) at Note#27 , mails dated 26.02.2020,

03.03.2020, 11.03.2020 , 12.05.2020 and reminder dated 28.05.2020
were sent to FCI for seeking information on financial implication of the
proposal and also ask whether the proposal is in consonance with the
judgment of Hon'ble High Court, Madras .
2. In response, FCI vide their letter no. WRC/39/1/2019 dated

24.06.2020 has informed that Regional Directors of all Zonal Offices
were advised to send the financial implication of the proposal and as per
information received from Regional Directors((Food) , the total
financial implication is Rs 2.8 crore per month approximately.
3. However, FCI has not furnished any comments/clarification in

their aforesaid reply as whether the proposal is in consonance with
the Judgement of Hon’ble High Court of Madras.
4. In view of above Para, we may request FCI to furnish their

comments as per DFA please.
02/07/2020 3:58 PM
TANU SARDANA
Note No. #48
02/07/2020 4:59 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #49
Sub: Revision/ rationalization/ consolidation of Pension/ family Pension in

respect of IDA employees/ Food Transferee-reg.
A detailed proposal on the above subject submitted by FCI vide Letter

No. WRC/39/1/2019 dated 06.12.2019 may be seen at Pg 23-36 /C.
4. In this connection, FCI informed that a committee was constituted to

examine the matter and submit recommendation thereof. Accordingly, the
committee deliberated on the issue and submitted its report (Pg 25 -29 /C). The
committee opined that
".....In view of the judgment of Supreme Court, Madras High Court and
Ministry letter dated 19.3.2019, Food Transferees are entitled for benefits
under CDA pattern from the date from which IDA pattern was made applicable
to them as well as pension pay be revised as per CDA pattern and benefits of
protection of pension along with other benefits may also be granted to the
pensioner covered under the order dated 10.02.2010 of Hon'ble supreme court
and other similarly situated persons.”
5. Thus, as per the recommendation of the committee, Basic pension may

be Revised from the date from which lDA pattern was made applicable to Food
Transferees by protecting their pension. The revision may be carried out by
Applying pay fixation formula as applicable for CDA pay pattern employees.
Further, the benefits as applicable to CDA pay pattern employees may be
extended to them including Dearness relief i.e. CDR. This will be in consonance
with the Chief controller of Accounts, MoCA,F&PD, Delhi direction to issue

instructions for revision of pay and pension as per 7 th CPC .Further, once the
basic pay is fixed, the existing pensioner may be regulated as per
instructions/guidelines issued by Govt. of India from time to time, (As has been
circulated for implementation of revision of pension of pre-2016
pensioner/family pensioners vide FCI circular no. WR-08-2017-09 dated
06.09.2017(Pg 33/C).

fixation formula as applicable for CDA pay pattern employees along with
protection of pension as on 31.12.2015 Further, the benefits as applicable to
CDA pay pattern employees may be extended to them including Dearness relief
i.e CDR w.e.f. 01.01.2016. Further, once the basic pay is fixed, the existing
pensioner may be regulated as per instructions/guidelines issued by Govt. of
India from time to time. (As has been circulated for implementation of revision
of pension of pre-2016 pensioner/family pensioners vide FCI circular no. WR-
08-2017-09 dated 06.09.2017.) (Pg 33/C).
7. Further, the legal division of FCI opined that application of the

instructions of Ministry contained in letter dated 19.03.2019 (Pg 30/C), may
tantamount to altering the current benefits under IDA by virtue of the statutory
option under section 12 A of the FCI Act to that of CDA, of course by
protecting the pension, if so, attention is invited to the judgment of Hon'ble
Supreme Court in the matter of Union of India & Anr. Vs. P.N. Natarajan and
ors, where in it is observed that "The Central Govt. did not have the jurisdiction
to unilaterally alter/change the option exercised by the writ petitioners under
section 12A (48) read with section 12A(4C)." Therefore, a notice has to be given
to each pensioner intimating the pension determination as per CDA pattern.
8. The proposal submitted by FCI was examined and as per remarks at Note
#27, this Department FCI to furnish information on financial implication of the
proposal and also ask whether the proposal is in consonance with the judgment
of Hon'ble High Court, Madras .
9. FCI vide their letter no. WRC/39/1/2019 dated 24.06.2020 (Pg 60/C) has
informed that Regional Directors of all Zonal Offices were advised to send the
financial implication of the proposal and as per information received from
Regional Directors((Food) , the total financial implication is Rs 2.8 crore per

month approximately . Further, vide letter dated 13.07.2020, FCI has the
proposal is in consonance with the judgment of Hon’ble High Court of
Madras as the Judgment of Hon’ble High Court of Madras is concerned
with Dearness relief only. The Hon’ble High Court has not touched upon
and hence not commented in respect of basic pension in its order dated
01.10.2018.
10. Further, FCI has stated that the pay pattern is to be decided in terms of
Dearness Allowances being disbursed. Since, Hon’ble High Court of Madras
has directed to pay Central Dearness Allowance to Food Transferee
Pensioners; their basic pension may also be revised in CDA pattern.
11. File is put up for kind consideration and further directions please.
23/07/2020 4:14 PM
TANU SARDANA
Note No. #50
27/07/2020 4:04 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #51
Notes #16 to #23 may also be seen. Submitted pl.
28/07/2020 5:26 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #52
pl discuss
30/07/2020 2:32 PM
RAKESH KUMAR MEENA
Note No. #53
Discussed. Pl. Put up a self-contained Note including Hon’ble Supreme Court and
Madras High Court orders respectively, financial implication, views of FCI etc.
20/08/2020 3:40 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #54
20/08/2020 3:54 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #55
Ref from Note#53 may be seen
We mayrequest FCI to send a detailed proposal to this Department

furnishing their views on the matter alongwith the financial implications and
judgements of Hon’ble High Court & Supreme Court as per DFA please
26/08/2020 4:33 PM
TANU SARDANA
Note No. #56
27/08/2020 9:28 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #57
Pl. Put up file, after taking input from file related to Hon’ble Madras High Court.
28/08/2020 1:01 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #58
28/08/2020 3:12 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #59
This is regarding Revision/ rationalization/ consolidation of

Pension/ family Pension in respect of IDA employees/ Food Transferee
2. In this regard, it may be informed that FCI has already revised the
scale of pay in respect of Executives i.e Cat-I & II on IDA pattern w.e.f 01
.01.2017 vide circular no. WR-09-2018-10 dated 29.06.2018 (Pg 5/C)
and pay of Category-III& IV employees has also been revised.
3. Now, FCI vide their Letter No. WRC/39/1/2019 dated

06.12.2019 ( Pg 23-36/C) submitted the proposal in r/o IDA employees/
Food Transferees to this Department for consideration. A copy of
Committee Report of FCI is also forwarded which may be seen at Pg 25-
29/C .
4. To examine the matter, FCI constituted a committee on the issue

of revision of pension/family pension /Death cum Retirement Gratuity
(DCRG) in respect of IDA Food Transferees who had exercised their
option under section 12A of FC act 1964 (Pg 91-95 /C) to be governed
by pay scale of FCI and retirement benefit pension as admissible to
Central Government employees. The opinion of the committee is as
under:
".....In view of the judgment of Supreme Court, Madras High

Court and Ministry letter dated 19.3.2019, Food
Transferees are entitled for benefits under CDA pattern
from the date from which IDA pattern was made applicable
to them as well as pension pay be revised as per CDA
pattern and benefits of protection of pension along with
other benefits may also be granted to the pensioner
covered under the order dated 10.02.2010 of Hon'ble
supreme court and other similarly situated persons.”
5. The matter was examined in the light of the judgment of Hon’ble

Apex Court dated 10.02.2010 (Pg 75/C) and Madras High Court dated
01.10.2018 (Pg 112/C) . The judgment of Madras High Court primary
relies upon the Supreme Court judgment dated 10.02.2010 passed in
Union of India & another versus P.N. Natarajan & Others
6. Background of the Court Cases leading to judgments of

Hon’ble Supreme Court dated 10.02.2010 and Madras High Court
dated 01.10.2018.
The petitioners were the Food Transferees who were
initially appointed by the Government of India and
subsequently, on formation of the Corporation viz., Food
Corporation of India, the petitioners had exercised their option
and accordingly transferred to FCI. Since, the employees were
initially appointed by the Government of India; they have given
option to opt for the terminal benefits as applicable to the
Central government employees. The petitioners opted for
leave , provident fund, retirement and other terminal benefits
admissible to employees of the Central Govt. Their pension
was fixed keeping in view the option exercised in terms of
Section 12A (4)(b) (Pg 93/C) read with Section 12A(4C) (Pg
94/C) and they were paid retiral dues at par with employees of
the Central Govt.
In 1996 an audit objection was raised to the entitlement

of the food transferees to receive retiral benefits at par with
Central Government employees. By relying upon the audit
objection, the Central Government issued direction for re-
fixation of the pension, etc on the premise that they are entitled
to pension, gratuity etc. on the basis of pay and allowances
drawn by them in the service of the Corporation but not entitled
to dearness relief. The petitioners filed writ petition against the
same.
The learned Single judge allowed the writ petitions and

declared that the terminal benefits payable to the petitioners in
terms of the option exercised by them under Section 12A(4)
cannot be reduced by the Central Government. Further, FCI
preferred and appeal before Division Bench of Kerala High
Court against the order passed by Single Judge. The Division
Bench upheld the order of the learned Single Judge and
dismiised the appeals preferred by FCI.
Aggrieved by the directives of the Central Government

some of the petitioners approached the Supreme Court of
India. The Supreme Court delivered the judgment by an
order dated 10.02.2010 (Pg 63-76 /C) in favour of the
Petitioners which were food transferee and directed the
UOI & FCI to release the amount payable to the
respondents and other similarly situated persons within a
period of 3 months from 10.02.2010 or else have to pay
@9% interest per annum from the date of this orders and
also directed the applicants to pay the cost of Rs. 10,000/-
to each respondent.(Pg 75/C)
In compliance of the judgment this Department vide

letter No. 18011/3/2010-FC-3 dated 24.09.2010 (Pg 77 /C )
decided to switch over from IDA Dearness Relief to CDA
Dearness Relief and to release the due amount payable to
the seven respondents and other similarly situated
persons (Food Transferees) of FCI who were retired on
IDA pay scales.
As, the judgment was pronounced in the year 2010 and
pursuant to the judgment, in order to extend the benefit to the

similarly placed employees, the Food Corporation of India has
issued a notification in the year 2010 itself. These petitioners
of the Court Case filed in Madras High Court, had not
approached the Department within a reasonable period of time
and the present WPs were filed after a lapse of 5 years, in the
year 2015. The grievances of the writ petitioners are that the
pensionary benefits as applicable to them at the time of
exercising option had not been extended.
In view of above, the Hon'ble High Court of Madras vide

its Order dated 01.10.2018 ( Pg 96-119 / C )has directed the
respondents (UOI & FCI) to revise the Central Dearness
Allowance as applicable as per the rules in force to all the
Petitioners and allowed interest in respect of arrears of
Central Dearness Allowances for the differential amount
with effect from 1.1.2016 onwards.(Pg 112-113/C )
Further, this Department vide letter dated 19.03.2019 (Pg

30/C) issued an order in compliance of the judgement of
Madras High Court.
7. Office of the Chief Controller of Accounts , Principal Accounts

Office, MoCA,F&PD, New Delhi vide its letter dated 17.07.2017 (Pg 32/
C) advised to issue instructions for revision of pay and pension as per
7th CPC as done in 1990 to 1997 and 2007 in respect of transferee
pensioners family pensioners of pre-2016 drawing industrial pay as per
Industrial Wage structure and pension and they are as per CCS Pension
Rules but during those years their basic pension was revised as per
Industrial wage structure and not on the basis of Central pay commission
8. Thus, as per the recommendation of the committee, Basic pension

may be Revised from the date from which lDA pattern was made
applicable to Food Transferees by protecting their pension. The revision
may be carried out by Applying pay fixation formula as applicable for
CDA pay pattern employees. Further, the benefits as applicable to CDA
pay pattern employees may be extended to them including Dearness
relief i.e. CDR. This will be in consonance with the Chief controller of
Accounts, MoCA,F&PD, Delhi direction to issue instructions for revision
of pay and pension as per 7th CPC .Further, once the basic pay is fixed,
the existing pensioner may be regulated as per instructions/guidelines
issued by Govt. of India from time to time, (As has been circulated for
implementation of revision of pension of pre-2016 pensioner/family
pensioners vide FCI circular no. WR-08-2017-09 dated 06.09.2017(Pg
33/C).
9. Alternatively, Pension may be revised w.e.f 01.01.2016 by

applying pay fixation formula as applicable for CDA pay pattern
employees along with protection of pension as on 31.12.2015 Further,
the benefits as applicable to CDA pay pattern employees may be
extended to them including Dearness relief i.e CDR w.e.f. 01.01.2016.
Further, once the basic pay is fixed, the existing pensioner may be
regulated as per instructions/guidelines issued by Govt. of India from
time to time. (As has been circulated for implementation of revision of
pension of pre-2016 pensioner/family pensioners vide FCI circular no.
WR-08-2017-09 dated 06.09.2017.) (Pg 33/C).
instructions of Ministry contained in letter dated 19.03.2019 (Pg 30/C),
may tantamount to altering the current benefits under IDA by virtue of the
statutory option under section 12 A of the FCI Act to that of CDA, of
course by protecting the pension, if so, attention is invited to the
judgment of Hon'ble Supreme Court in the matter of Union of India & Anr.
Vs. P.N. Natarajan and Ors, where in it is observed that "The Central
Govt. did not have the jurisdiction to unilaterally alter/change the option
exercised by the writ petitioners under section 12A (4b) read with section
12A(4C)." Therefore, a notice has to be given to each pensioner
intimating the pension determination as per CDA pattern.
11. FCI vide their letter no. WRC/39/1/2019 dated 24.06.2020 (Pg
60/C) has informed that as per information received from Regional
Directors((Food) of all Zonal Offices , the total financial implication
is Rs 2.8 crore per month approximately . Further, vide letter dated

13.07.2020, FCI has the proposal is in consonance
with the judgment of Hon’ble High Court of Madras as the
Judgment of Hon’ble High Court of Madras is concerned with
Dearness relief only. The Hon’ble High Court has not touched upon
and hence not commented in respect of basic pension in its order
dated 01.10.2018.
12. Further, FCI has stated that the pay pattern is to be decided in
terms of Dearness Allowances being disbursed. Since, Hon’ble High
Court of Madras has directed to pay Central Dearness Allowance to
Food Transferee Pensioners; their basic pension may also be revised in
CDA pattern.
13. File is put up for kind perusal/ consideration please.
31/08/2020 1:49 PM
TANU SARDANA
Note No. #60
01/09/2020 1:30 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #61
01/09/2020 5:04 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #62
Pl call concerned GM/FCI for discussion on the subject matter in next week.
01/10/2020 10:23 AM
RAKESH KUMAR MEENA
Note No. #63
01/10/2020 10:50 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #64
As per the discussions held with FCI under the chairmanship of Director”(FC-III) on
19.10.2020 , FCI was informed to prepare a revised proposal and any additional information required
.However, no information has been received yet. We may request FCI to furnish the same.
Accordingly, draft letter to FCI is put up for kind approval.
29/10/2020 4:52 PM
TANU SARDANA
Note No. #65
02/11/2020 1:34 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #66
02/11/2020 3:04 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #67
03/11/2020 11:53 AM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #68
This is regarding Revision/ rationalization/ consolidation of Pension/

family Pension in respect of IDA employees/ Food Transferee
2. In this regard, it may be informed that FCI has already revised the scale
of pay in respect of Executives i.e Cat-I & II on IDA pattern w.e.f 01 .01.2017
vide circular no. WR-09-2018-10 dated 29.06.2018 (Pg 5/C) and pay of
Category-III& IV employees has also been revised.
3. Now, FCI vide their Letter No. WRC/39/1/2019 dated 06.12.2019 ( Pg
23-36/C) submitted the proposal in r/o IDA employees/Food Transferees to
this Department for consideration. A copy of Committee Report of FCI is also
forwarded which may be seen at Pg 25-29/C .
4. To examine the matter, FCI constituted a committee on the issue of
revision of pension/family pension /Death cum Retirement Gratuity (DCRG) in
respect of IDA Food Transferees who had exercised their option under section
12A of FC act 1964 (Pg 91-95 /C) to be governed by pay scale of FCI and
retirement benefit pension as admissible to Central Government employees.
The opinion of the committee is as under:
".....In view of the judgment of Supreme Court, Madras High

Court and Ministry letter dated 19.3.2019, Food Transferees
are entitled for benefits under CDA pattern from the date from
which IDA pattern was made applicable to them as well as
pension pay be revised as per CDA pattern and benefits of
protection of pension along with other benefits may also be
granted to the pensioner covered under the order dated
10.02.2010 of Hon'ble supreme court and other similarly
situated persons.”
5. The matter was examined in the light of the judgment of Hon’ble Apex
Court dated 10.02.2010 (Pg 75/C) and Madras High Court dated 01.10.2018
(Pg 112/C) . The judgment of Madras High Court primary relies upon the
Supreme Court judgment dated 10.02.2010 passed in Union of India & another
versus P.N. Natarajan & Others
6. Background of the Court Cases leading to judgments of Hon’ble
Supreme Court dated 10.02.2010 and Madras High Court dated 01.10.2018.
The petitioners were the Food Transferees who were initially
appointed by the Government of India and subsequently, on
formation of the Corporation viz., Food Corporation of India, the
petitioners had exercised their option and accordingly transferred
to FCI. Since, the employees were initially appointed by the
Government of India; they have given option to opt for the terminal
benefits as applicable to the Central government employees. The
petitioners opted for leave , provident fund, retirement and other
terminal benefits admissible to employees of the Central Govt.
Their pension was fixed keeping in view the option exercised in
terms of Section 12A (4)(b) (Pg 93/C) read with Section 12A(4C)
(Pg 94/C) and they were paid retiral dues at par with employees of
the Central Govt.
In 1996 an audit objection was raised to the entitlement of
the food transferees to receive retiral benefits at par with Central
Government employees. By relying upon the audit objection, the
Central Government issued direction for re-fixation of the pension,
etc on the premise that they are entitled to pension, gratuity etc. on
the basis of pay and allowances drawn by them in the service of the
Corporation but not entitled to dearness relief. The petitioners filed
writ petition against the same.
The learned Single judge allowed the writ petitions and
declared that the terminal benefits payable to the petitioners in
terms of the option exercised by them under Section 12A(4) cannot
be reduced by the Central Government. Further, FCI preferred and
appeal before Division Bench of Kerala High Court against the
order passed by Single Judge. The Division Bench upheld the order
of the learned Single Judge and dismiised the appeals preferred by
FCI.
Aggrieved by the directives of the Central Government some
of the petitioners approached the Supreme Court of India. The
Supreme Court delivered the judgment by an order
dated 10.02.2010 (Pg 63-76 /C) in favour of the Petitioners which
were food transferee and directed the UOI & FCI to release the
amount payable to the respondents and other similarly situated
persons within a period of 3 months from 10.02.2010 or else have
to pay @9% interest per annum from the date of this orders and
also directed the applicants to pay the cost of Rs. 10,000/- to each
respondent.(Pg 75/C)
In compliance of the judgment this Department vide letter
No. 18011/3/2010-FC-3 dated 24.09.2010 (Pg 77 /C ) decided to
switch over from IDA Dearness Relief to CDA Dearness Relief and
to release the due amount payable to the seven respondents and
other similarly situated persons (Food Transferees) of FCI who
were retired on IDA pay scales.
As, the judgment was pronounced in the year 2010 and
pursuant to the judgment, in order to extend the benefit to the
similarly placed employees, the Food Corporation of India has
issued a notification in the year 2010 itself. These petitioners of the
Court Case filed in Madras High Court, had not approached the
Department within a reasonable period of time and the present
WPs were filed after a lapse of 5 years, in the year 2015. The
grievances of the writ petitioners are that the pensionary benefits as
applicable to them at the time of exercising option had not been
extended.
In view of above, the Hon'ble High Court of Madras vide its
Order dated 01.10.2018 ( Pg 96-119 / C ) has directed the
respondents (UOI & FCI) to revise the Central Dearness Allowance
as applicable as per the rules in force to all the Petitioners and
allowed interest in respect of arrears of Central Dearness
Allowances for the differential amount with effect from
1.1.2016 onwards.(Pg 112-113/C )
Further, this Department vide letter dated 19.03.2019 (Pg 30/C)

issued an order in compliance of the judgement of Madras High
Court.
7. Office of the Chief Controller of Accounts , Principal Accounts Office,

MoCA,F&PD, New Delhi vide its letter dated 17.07.2017 (Pg 32/C) advised to
issue instructions for revision of pay and pension as per 7th CPC as done in
1990 to 1997 and 2007 in respect of transferee pensioners family pensioners
of pre-2016 drawing industrial pay as per Industrial Wage structure and
pension and they are as per CCS Pension Rules but during those years their
basic pension was revised as per Industrial wage structure and not on the
basis of Central pay commission
8. Thus, as per the recommendation of the committee, Basic pension may
be Revised from the date from which lDA pattern was made applicable to Food
Applying pay fixation formula as applicable for CDA pay pattern employees.
extended to them including Dearness relief i.e. CDR. This will be in
consonance with the Chief controller of Accounts, MoCA,F&PD, Delhi direction
to issue instructions for revision of pay and pension as per 7th CPC .Further,
once the basic pay is fixed, the existing pensioner may be regulated as per
instructions/guidelines issued by Govt. of India from time to time, (As has been
circulated for implementation of revision of pension of pre-2016
pensioner/family pensioners vide FCI circular no. WR-08-2017-09 dated
06.09.2017(Pg 33/C).
9. Alternatively, Pension may be revised w.e.f 01.01.2016 by applying

pay fixation formula as applicable for CDA pay pattern employees along with
protection of pension as on 31.12.2015 Further, the benefits as applicable to
CDA pay pattern employees may be extended to them including Dearness
relief i.e CDR w.e.f. 01.01.2016. Further, once the basic pay is fixed, the
existing pensioner may be regulated as per instructions/guidelines issued by
Govt. of India from time to time. (As has been circulated for implementation of
revision of pension of pre-2016 pensioner/family pensioners vide FCI circular
no. WR-08-2017-09 dated 06.09.2017.) (Pg 33/C).
instructions of Ministry contained in letter dated 19.03.2019 (Pg 30/C) , may
tantamount to altering the current benefits under IDA by virtue of the statutory
option under section 12 A of the FCI Act to that of CDA, of course by
protecting the pension, if so, attention is invited to the judgment of Hon'ble
Supreme Court in the matter of Union of India & Anr. Vs. P.N. Natarajan and
Ors, where in it is observed that "The Central Govt. did not have the
jurisdiction to unilaterally alter/change the option exercised by the writ
petitioners under section 12A (4b) read with section 12A(4C)." Therefore, a
notice has to be given to each pensioner intimating the pension determination
as per CDA pattern.
11. FCI vide their letter no. WRC/39/1/2019 dated 24.06.2020 (Pg
60/C) has informed that as per information received from Regional
Directors((Food) of all Zonal Offices , the total financial implication is Rs 2.8
crore per month approximately . Further, vide letter dated 13.07.2020, FCI
has the proposal is in consonance with the judgment of Hon’ble High Court of
Madras as the Judgment of Hon’ble High Court of Madras is concerned with
Dearness relief only. The Hon’ble High Court has not touched upon and
hence not commented in respect of basic pension in its order dated
01.10.2018.
12. Further, FCI stated that the pay pattern is to be decided in terms
of Dearness Allowances being disbursed. Since, Hon’ble High Court of
Madras has directed to pay Central Dearness Allowance to Food Transferee
Pensioners; their basic pension may also be revised in CDA pattern.
13. As per the instructions of Dirctor(FC-III) at Note#62 , a meeting was
held on 19.10.2020 with the GM(PE), FCI, HQ and concerned FCI officers. In
the discussion, FCI was requested to furnish consolidated proposal along with
financial implications in terms of interest on arrear of differential amount
consequent to implementation of Hon’ble High Court of Madras order dated
01.10.2018 and other relevant information.
14. FCI vide their letter dated 03.11.2020 (Pg 121/c) has submitted that
the court’s order is limited to conversion of IDR to CDR only. In their letter, FCI
has clarified that there is no differential amount to be paid; question of interest
on that amount does not arise. (The detailed explanation may be seen in
aforesaid letter dated 03.11.2020 which is self explanatory). Therefore, there
is no financial implication during pension revision as per 7 th CPC in terms of
interest on arrear of differential amount consequent to implementation of
Hon’ble High Court of Madras order dated 01.10.2018.
Therefore, the financial Implication for revision of pension, applying
CDA formula, is Rs. 2.8 crore per month (approx.) w.e.f 01.01.2016 and
interest is not payable on this amount.
15. File is put up for seeking approval of AS(P&FCI) on this proposal
before sending the file to AS&FA.
25/11/2020 12:41 PM
TANU SARDANA
Note No. #69
Para 7 of the above mentioned Note # 68 , may be read as below:
Office of the Chief Controller of Accounts , Principal Accounts Office, MoCA,

F&PD, New Delhi vide its letter dated 17.07.2017 (Pg 32/C) requested The
Regional Director(Food), HQ, FCI, New Delhi to issue instructions for
revision of pay and pension as per 7th CPC (as done in 1992, 1997 and 2007
by FCI) in respect of Food Transferee pensioners/ family pensioners of pre-
2016 who were drawing Industrial Pay as per Industrial Wage Structure and
Pension & DR as per CCS Pension.
Submitted for kind consideration/approval of AS(P& FCI) before

sending it to AS & FC, DFPD for concurrence pl.
26/11/2020 10:17 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #70
26/11/2020 1:10 PM
RAKESH KUMAR MEENA
Note No. #71
Pl discuss.
26/11/2020 2:08 PM
Edwin Kulbhushan Majhi
(ADDITIONAL SECRETARY)
Note No. #72
Discussed with AS/P&FCI, pl discuss with AS along with me.
02/12/2020 5:29 PM
RAKESH KUMAR MEENA
Note No. #73
Discussed. pl. Put up DFA pl.
21/01/2021 11:41 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #74
21/01/2021 1:02 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #75
Ref Note 68/N may please be seen
Since no information has been received from FCI, we may send a

reminder to FCI for furnishing the requisite information to this Department at the
earliest.
02/02/2021 4:09 PM
TANU SARDANA
Note No. #76
02/02/2021 4:46 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #77
02/02/2021 5:07 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #78
03/02/2021 11:34 AM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #79

Pension in respect of IDA employees/ Food Transferee who opted for Central
Government Pension.
2. In this context, a self contained note may be seen at Note 68 (or 125-29/C ).
3. This Department vide letter of even number dated 22.01.2021 requested FCI
to prepare a revised proposal, furnish financial implication and some clarification on
the matter. FCI vide letter dated 23.02.2021 has submitted that it has already
submitted the detailed proposal vide even no. letter dated 06.12.2019 . Further, the
financial Implication for revision of pension, applying CDA formula, has also been
submitted vide FCI letter dated 24.06.2020 which was calculated as Rs. 2.8. crore
per month (approx.)
3. The committee constituted in FCI to examine the matter, deliberated on the

issue and submitted its report dated 21.11.2019 . The committee opined that Basic
pension may be revised from the date from which IDA pattern was made applicable
to Food Transferees by protecting their pension. The revision may be carried out by
applying pay fixation formula as applicable for CDA pay pattern employees. Further,
the benefits as applicable to CDA pay pattern employees may be extended to them
including Dearness relief i.e, CDR. Further, once the basic pay is fixed, the existing
pensioner may be regulated as per instructions/guidelines issued by Govt. of India
from time to time.
4. Furthermore, a meeting was held in the chamber of Director (FC-III), DFPD

on dated 19.10.2020, wherein matter of pension revision of Food transferees was
discussed in light of Judgment passed by Hon’ble High Court of Madras. After a
detail discussion, it has been agreed upon that the pension may be revised w.e.f
01.01.2016 as per CDA formula as the food transferee pensioners/family pensioners
are availing Central Dearness Relief (CDR) w.e.f 01.01.2016 in compliance of
Hon’ble High Court of Madras order dated 01.10.2018 .
Accordingly, Pension may be revised w.e.f. 01.01.2016 by applying pay

fixation formula as applicable for CDA pay pattern employees along with protection of
pension as on 31.12.2015. Further, the benefits as applicable to CDA pay pattern
employees may be extended to them including Dearness relief i.e CDR w.e.f
01.01.2016.
Since, determination of pension by notional pay fixation as per concordance

table issued by DoPPW vide OM dated 06.07.2017 is very complicated considering
the different pay scale under CDA & IDA regime, the basic pension as on dated
31.12.2015 may be treated as basis for applying fitment formula. As the Ministry has
issued direction dated 19.03.2019 for protection of pension, notional pay fixation for
determination of basic pension is of little importance. Further, once the basic pay is
fixed, the existing pensioner may be regulated as per instructions/guidelines issued
by Govt. of India from time to time.
5. Further, attention is invited to legal opinion tendered by legal division of this

office, wherein it was opined that application of the instructions of Ministry contained
in letter dated 19.03.2019, may tantamount to altering the current benefits under IDA
by virtue of the statutory option under section 12 A of the FCI Act to that of CDA, of
course by protecting the pension. If so, attention is invited to the judgment of Hon’ble
Supreme Court in the matter of Union of India & Anr. Vs. P.N. Natarajan and Ors,
Wherein it is observed that “The Central Govt. did not have the jurisdiction to
unilaterally alter/change the option exercised by the writ petitioners under section
12A (4B) read with section 12A (4C).”
Therefore, a notice has to be given to each pensioner intimating the pension

determination as per CDA pattern. Further, considering the gravity of the matter and
wider repercussions, if need be opinion of Ministry of Law & Justice/ASG may be
obtained.
6. Further, Point-wise replies to the queries raised by Ministry are as below:
I. What are the various options given to Food Transferees by FCI under FC
Act?
“………….(4) Every officer or other employee transferred by an order made under
sub-section(1) shall, within six months from the date of transfer, exercise his option in
writing to be governed,-
a. by the scale of pay applicable to the post held by him under the Government
immediately before the date of transfer or by the scale of pay applicable to the
post under the Corporation to which he is transferred.
b. by the leave, provident fund, retirement or other terminal benefits admissible to
employees of the Central Government in accordance with the rules and others
of the Central Government as amended from time to time or the leave,
provident fund or other terminal benefits admissible to the employees of the
Corporation under the regulations made by the Corporation under this Act,
……………….
…………..(4C) Where an officer or other employee has exercised an option under
sub-section (4), or exercises, or is deemed to have exercised, an option under that
sub-section, read with sub-section (4A) or sub-section (4B), to be governed by the
leave, provident fund, retirement or other terminal benefits admissible to the
employees of the Central Government, such benefits shall be calculated on the basis
of the pay and allowances drawn by him in the Corporation.]….”
Therefore, there were four possible options available to Food Transferees under FC
Act:-
i. Central Govt. Pay + Central Govt. pension.

ii. FCI‘s Pay Scale + Central Govt. pension.
iii. Central Govt. pay + FCI terminal benefits (CPF).
iv. FCI‘s Pay Scale + FCI terminal benefits(CPF).
II. How the revision of pension/Family pension in respect of IDA employees/
food transferees was implemented in previous CPCs?
In previous CPC, the orders for pension/ family pension revision were issued by
DFPD, MoCAF&PD to Chief Controller of Accounts vide letter no. 38020/1/2009-FC-3
dated 25.10.2010. (Pg 133/C)
As per the order pension/family pension was consolidated w.e.f 01.01.2007 by

adding together,
i. Existing pension/ family pension.

ii. Actual Dearness Relief upto (AICPI average level -2884) -78.2%
iii. Fitment @ 30% of the existing pension/ family pension + 78.2% of DR (vide
Ministry order dated 01.11.2010) (Pg 136 /C)
The amount so arrived was regarded as consolidated pension/ family pension w.e.f.
01.01.2007 subject to minimum/ maximum limit prescribed under CCS (pension)
rules, 1972.
The pension so arrived was treated as final basic pension w.e.f. 01.01.2007
and qualified for grant of Industrial Dearness Relief sanctioned thereafter by DPE or
DFPD.
III. Whether the proposal is in compliance with the judgment of Hon’ble

Supreme Court and High Court of Madras?
In this regard, it is stated that the Judgment of Hon’ble Courts are concerned
with Dearness relief only. The Hon’ble High Court of Madras has only directed
“…..to revise the Central Dearness Allowance as applicable as per the rules in
force to all the petitioners.” Further, the court has directed to pay interest on
the arrear of CDA differential amount w.e.f 01.01.2016. In view of the above,
the proposal is in consonance with the judgment of Hon’ble Courts.
IV.Has FCI revised the pension or other applicable emoluments related

pension as per requisite directions and upto which month/year same has
been finalized / paid?
FCI has issued order for revision of pension of those food transferees who were
retired on Central Govt. Pay or CDA scale vide circular no. WR-08-2017-09 dated
06.09.2017 in accordance with order issued by DoPPW and CPAO. (Pg 137 /C)
However, Basic pension/ family pension of those food transferees who retired
on IDA pay scale and opted for government pension has not been revised yet.
Further it is also stated that only Central Dearness relief has been revised as per the
order of Madras High court. It is imperative pension may be revised as per CDA
pattern.
8. File is submitted furnishing reply regarding clarification sought from FCI and
for kind consideration/ approval of AS(P&FCI) before sending the file to AS&FA.
03/03/2021 3:23 PM
TANU SARDANA
Note No. #80
03/03/2021 3:30 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #81
03/03/2021 5:55 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #82
pl discuss
10/03/2021 4:03 PM
RAKESH KUMAR MEENA
Note No. #83
Discussed.
10/03/2021 5:19 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #84
11/03/2021 11:49 AM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #85
Sub: Revision/ rationalization/ consolidation of Pension/ family Pension in

respect of IDA employees (Food Transferee) who opted for central Government
Pension
This is regarding Revision/ rationalization/ consolidation of Pension/

family Pension in respect of IDA employees (Food Transferee) who opted for
central Government Pension.
Background of the proposal:
Food Transferees are ex- government employees transferred to Food

Corporation of India (FCI) after its formation in late 1960s. Based on their
demand for legislative protection, Food Transferees were given option in the
year 1968 under amendment of section Food Corporation Act, 1964 to:
a. Give options to the employees either to join FCI or not to join:

b. Treating them as FCI employees in the event of such transfer;
c. Giving time up to 6 months from the date of transfer, to exercise options
for being governed by Central Government rules of FCI rules, in matters
of pay, leave, provident fund, retirement or other terminal benefits. Such
option once exercised was to be treated as final.
Accordingly, some of the Food Transferees opted to be governed by pay
scale of the corporation and retirement benefit (pension) as admissible to
Central Government employees.
2. In this regard, it may be informed that FCI revised the scale of pay in
respect of Executives i.e Cat-I & II on IDA pattern w.e.f 01 .01.2017 vide
circular no. WR-09-2018-10 dated 29.06.2018 (Pg 5/C) and pay of Category-III & IV
employees has also been revised.
3. FCI vide their Letter No. WRC/39/1/2019 dated 06.12.2019 (Pg

23-36/C) submitted the proposal in r/o IDA employees (Food Transferees) to
this Department for consideration. In this regard, it the year 2019, a committee
was constituted in FCI to examine the matter.
4. The matter was examined in the light of judgment of Hon’ble Apex

Court dated 10.02.2010 (pg 63/C) and Madras High Court dated 01.10.2018. (Pg
96/c) The Judgment of Madras High Court primarily relies upon the Supreme
Court judgment dated 10.02.2010 passed in Union of India & Another Vs. P.N.
Natarajan & Others. Brief of the case is as under:
The petitioners (Food Transferees) were initially appointed by Govt. of
India and subsequently, transferred to FCI where they were given option to opt
for the terminal benefits as applicable to the Central Government Employees
and they exercised their option, adopting the scale of pay as applicable to the
employees of FCI and opting for Central Government Pensionary benefits under
the law. In 1996, an audit objection was raised to their entitlement to receive
retiral benefits on a par with Central Govt employees. By relying upon the audit
objection, the Central Govt issued direction for refixation of pension etc payable
to the petitioners on the premise that they are entitled to pension, gratuity etc on
the basis of pay and allowances drawn by them in the service of the Corporation
but are not entitled to dearness relief. However, Supreme Court vide order dated
10.02.2010 passed the judgment and it was decided to switch over from IDA
Dearness Relief to CDA Dearness Relief and to release the due amount to them
and other similarly situation persons.
Observation
5. The Committee deliberated on the issue and submitted its report dated
21.11.2019 . It opined that Basic pension may be revised from the date from
which IDA pattern was made applicable to Food Transferees by protecting their
pension. The revision may be carried out by applying pay fixation formula as
applicable for CDA pay pattern employees. Further, the benefits as applicable to
CDA pay pattern employees may be extended to them including Dearness Relief
i.e, CDR. Further, once the basic pay is fixed, the existing pensioner may be
regulated as per instructions/guidelines issued by Govt. of India from time to
time.
6. As per the recommendation of the Committee, Basic pension may be

revised from the date from which lDA pattern was made applicable to Food
applying pay fixation formula as applicable for CDA pay pattern employees.
extended to them including Dearness Relief i.e. CDR. This will be in
consonance with the Chief Controller of Accounts, MoCA,F&PD, Delhi
direction to issue instructions for revision of pay and pension as per
7th CPC .Further, once the basic pay is fixed, the existing pensioner may be
time, (As has been circulated for implementation of revision of pension of pre-
2016 pensioner/family pensioners vide FCI circular no. WR-08-2017-09 dated
06.09.2017(Pg 33/C).

protection of pension as on 31.12.2015. Further, the benefits as applicable to
08-2017-09 dated 06.09.2017.) (Pg 33/C).
Examination
6. A meeting was held in the chamber of Director (FC-III), DFPD on

19.10.2020, wherein matter of pension revision of Food Transferees was
detail discussion, it was observed that the pension may be revised w.e.f
01.01.2016 as per CDA formula as the Food Transferee pensioners/family
pensioners are availing Central Dearness Relief (CDR) w.e.f 01.01.2016 in
compliance of Hon’ble High Court of Madras order dated 01.10.2018.

i.e CDR w.e.f 01.01.2016.
7. Since, determination of pension by notional pay fixation as per

concordance table issued by DoPPW vide OM dated 06.07.2017 is very
complicated considering the different pay scale under CDA & IDA regime, the
basic pension as on dated 31.12.2015 may be treated as basis for applying
fitment formula. As this Department has issued direction dated 19.03.2019 for
protection of pension, notional pay fixation for determination of basic pension is
of little importance.
Further, once the basic pay is fixed, the existing pensioner may be regulated as
per instructions/guidelines issued by Govt. of India from time to time.
8. However, during examination of the proposal, this Department requested

FCI to furnish some clarifications on certain points. FCI vide letter dated
23.02.2021 has furnished point-wise clarification on the same which may be
seen at Pg 130 /C.
Legal and Financial Implications:
9. The legal division of FCI opined that application of the instructions of

Ministry contained in letter dated 19.03.2019 (Pg 30/C) , may tantamount to altering
the current benefits under IDA by virtue of the statutory option under section 12
A of the FCI Act to that of CDA, of course by protecting the pension, if so,
attention is invited to the judgment of Hon'ble Supreme Court in the matter of
Union of India & Anr. Vs. P.N. Natarajan and Ors, wherein it is observed that
"The Central Govt. did not have the jurisdiction to unilaterally alter/change the
option exercised by the writ petitioners under section 12A (4b) read with
section 12A (4C)." Therefore, a notice has to be given to each pensioner
intimating the pension determination as per CDA pattern.
10. In reference to the financial implication for revision of pension, applying

CDA formula, FCI vide letter dated 24.06.2020 (Pg 60/C) has submitted the
same as Rs 2.8 crore per month approximately.
Proposal
11.(a) To revise pension in respect of IDA employees (Food Transferees)

who have opted for central Government Pension with the financial
implication of approximately 2.8 crores per month.
(b) FCI to issue notice to each IDA pensioners intimating the pension
determination as per CDA pattern.
12. File is submitted for kind consideration/ seeking approval of AS(P&FCI)

before sending the file to AS&FA for their kind concurrence.
18/03/2021 4:29 PM
TANU SARDANA
Note No. #86
from pre-page
As per the direction of Director FC-III ask comments for FCI regarding
implementation of Pension revision with w.e.f. 01/012017 and CDA w.e.f.
01/01/2016 also ask for clarity in fitment formula
19/03/2021 3:56 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #87
With Ref to Note 86, DFA is put up for kind approval please.
22/03/2021 4:25 PM
TANU SARDANA
Note No. #88
22/03/2021 4:57 PM
SANGEETA CHADHA
(SO(FC-II & III))
Note No. #89
22/03/2021 5:56 PM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #90
22/03/2021 6:59 PM
RAKESH KUMAR MEENA
Note No. #91
23/03/2021 11:31 AM
GAUTAM KUMAR YADAV
(US(FC-III))
Note No. #92
Sub: Revision/ Rationalization/ Consolidation of Pension/ Family Pension in

respect of IDA employees (Food Transferee) who opted for central
Government Pension.
This is regarding Revision/ Rationalization/ Consolidation of Pension/

Family Pension in respect of IDA employees (Food Transferee) who opted for
central Government Pension.
Background of the proposal:
Food Transferees are Ex-government employees transferred to Food

Corporation of India (FCI) after its formation in late 1960s. Based on their
demand for legislative protection, Food Transferees were given option in the
year 1968 under amendment of section of Food Corporation Act, 1964 to:
a. Give options to the employees either to join FCI or not to join:

b. Treating them as FCI employees in the event of such transfer;
c. Giving time up to 6 months from the date of transfer, to exercise options
for being governed by Central Government rules of FCI rules, in matters
of pay, leave, provident fund, retirement or other terminal benefits. Such
option once exercised was to be treated as final.

Accordingly, some of the Food Transferees opted to be governed by pay
scale of the corporation and retirement benefit (pension) as admissible to
Central Government employees.
2. FCI vide their Letter No. WRC/39/1/2019 dated 06.12.2019 (Pg

23-36/C) submitted the proposal in r/o IDA employees (Food Transferees) to
this Department for consideration. In this regard, in the year 2019, a committee
was constituted in FCI to examine the matter.
3. The matter was examined in the light of judgment of Hon’ ble Apex Court
dated 10.02.2010 (pg 63/C) and Madras High Court dated 01.10.2018 (Pg
96/c) . The Judgment of Madras High Court primarily relies upon the Supreme
Court judgment dated 10.02.2010 passed in Union of India & Another Vs. P.N.
Natarajan & Others.
Brief of the case is as under:
4. The petitioners (Food Transferees) were initially appointed by Govt. of

India and subsequently, transferred to FCI where they were given option to opt
for the terminal benefits as applicable to the Central Government Employees
and they exercised their option, adopting the scale of pay as applicable to the
employees of FCI and opting forCentral Government Pensionary benefits under
the law.
5. In 1996, an audit objection was raised to their entitlement to receive retiral

benefits on a par with Central Government employees. By relying upon the audit
objection, the Central Govt issued direction for refixation of pension etc payable
to the petitioners on the premise that they are entitled to pension, gratuity etc on
the basis of pay and allowances drawn by them in the service of the Corporation
but are not entitled to Central Dearness Relief (CDR). However, Supreme Court
vide order dated 10.02.2010 passed the judgment and it was decided to switch
over from IDA Dearness Relief to CDA Dearness Relief and to release the due
amount to them and other similarly situation persons.
6. Further, Hon’ble High Court of Madras reiterated the directions contained

in the Judgment of Supreme Court dated 10.02.2010. The High Court’s
Judgment further clarified regarding similarly situation persons, as contained in
the Supreme Court Judgment that not all persons need to move to Court to get
any benefit which has the force of law and Rules behind it and has been allowed
to others who are on par with them.
7. In the year 2019, a committee was constituted in FCI to examine the

matter. The Committee deliberated on the issue and submitted its report dated
21.11.2019 (Pg 25/C) . It opined that in view of judgment of Supreme Court,
Madras High Court and this Department letter dated 19.03.2020 (Pg 30/C),
basic pension may be revised from the date from which IDA pattern was made
applicable to Food Transferees by protecting their pension. The revision may be
carried out by applying pay fixation formula as applicable for CDA pay pattern
employees. Further, the benefits as applicable to CDA pay pattern employees
may be extended to them including Dearness Relief i.e, CDR. Further, once the
basic pay is fixed, the existing pensioner may be regulated as per
instructions/guidelines issued by Govt. of India from time to time.
Observation
8. As per the recommendation of the Committee, Basic pension may be

revised from the date from which lDA pattern was made applicable to Food
applying pay fixation formula as applicable for CDA pay pattern employees.
extended to them including Dearness Relief i.e. CDR. This will be in
consonance with the Chief Controller of Accounts, MoCA,F&PD, Delhi
direction to issue instructions for revision of pay and pension as per
7th CPC .Further, once the basic pay is fixed, the existing pensioner may be
time, (As has been circulated for implementation of revision of pension of pre-
2016 pensioners/family pensioners vide FCI circular no. WR-08-2017-09 dated
06.09.2017(Pg 33/C).

08-2017-09 dated 06.09.2017.) (Pg 33/C) .
Examination
10. A meeting was held in the chamber of Director (FC-III), DFPD on
19.10.2020, wherein matter of pension revision of Food Transferees was

detailed discussion, it was observed that the pension may be revised w.e.f
01.01.2016 as per CDA formula as the Food Transferee pensioners/family
pensioners are availing Central Dearness Relief (CDR) w.e.f 01.01.2016 in
compliance of Hon’ble High Court of Madras order dated 01.10.2018.

i.e CDR w.e.f 01.01.2016.
11. FCI vide letter dated 05.04.2021 (Pg 140/C) has clarified the
methodology of pension fixation with Fitment Factor 2.57 as under:
Revised Basic pension as on 01.01.2016 = Existing pension/family pension as

on 31.12.2015 multiplied by CDA fitment factor (i.e. 2.57).
The amount so arrived shall be regarded as consolidated pension/family

pension w.e.f. 01.01.2016 subject to minimum/maximum limit prescribed under
CCS (pension) rules, 1972. Further, the pension so arrived is qualified for grant
of Central Dearness Relief sanctioned by DFPD.
Illustration: suppose Basic pension as on 31.12.2015 is Rs. 10000

a) Revised Basic pension as on 01.01.2016: 10000 x 2.57 = 25700
b) CDR as on 01.01.2016 = zero
12. (a) Further, with reference to the rationale for pension revision as on
01.01.2016, FCI has stated that the pay pattern is to be decided in terms of
Dearness Allowance being disbursed. Since, Hon’ble High Court of Madras has
directed to pay Central Dearness Allowance to Food Transferee Pensioners;
their basic pension may also be revised in CDA pattern. Further, the pension
revision of CDA pattern food transferees is effective from 01.01.2016 and the
pay revision of CDA pattern employees is also effective from 01.01.2016. On
the same pattern basic pension of food transferees who retired on IDA scale may
also be revised from 01.01.2016.
(b) As per opinion of FCI regarding implementation of revision of
pension w.e.f. 01.01.2017 will attract fitment factor of 15% available to IDA
pattern employees and merging CDR as on 01.01.2017. However, IDA fitment
factor invites merger of IDA rate not CDA. Therefore, there will be difficulty in
merging the dearness allowance with basic pension. Further, there will also be
difficulty in regulation of dearness relief w.e.f. 01.01.2017 as revision of basic
pension will make effective rate of CDR Zero on 01.01.2017 which would be
incorrect as CDR should become Zero on 01.01.2016 as applicable for CDA
employees.
13. As per recommendations of Committee of FCI and in view of the

judgment of Supreme Court, Madras High Court and this Department
letter dated 19.03.2019, it is proposed that food Transferees may be entitled
for benefits under CDA pattern from the date from which IDA pattern was
made applicable to them as well as pension pay be revised as per CDA
pattern and benefits of protection of pension along with other benefits may
also be granted to the pensioner covered under the order dated 10.02.2010
of Hon’ble Supreme Court.
Legal Implications submitted by FCI vide letter dated 23.02.2021 (Pg

130/c) is as under:
14. The legal division of FCI opined that application of the instructions of
Ministry contained in letter dated 19.03.2019 (Pg 30/C) , may tantamount to altering
the current benefits under IDA by virtue of the statutory option under section 12
A of the FCI Act to that of CDA, of course by protecting the pension, if so,
attention is invited to the judgment of Hon'ble Supreme Court in the matter of
Union of India & Anr. Vs. P.N. Natarajan and Ors, wherein it is observed that
"The Central Govt. did not have the jurisdiction to unilaterally alter/change the
option exercised by the writ petitioners under section 12A (4b) (Pg 93/C) read
with section 12A (4C)" (Pg 94/C) Therefore, a notice has to be given to each
pensioner intimating the pension determination as per CDA pattern.
Financial Implication:
15. In reference to the financial implication for revision of pension, applying

CDA formula, FCI vide letter dated 24.06.2020 ( Pg 60/C) has submitted the
same as Rs 2.8 crore per month approximately.
Proposal
16.(a) To revise pension in respect of IDA employees (Food Transferees)

who have opted for central Government Pension with the financial
implication of approximately 2.8 crore per month
(b) FCI to issue notice to each IDA pensioners intimating the pension
determination as per CDA pattern.
17. File is submitted for kind consideration/ seeking approval of AS(P&FCI)

before sending the file to IFD for their kind concurrence.
09/04/2021 3:56 PM
TANU SARDANA

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File No. 38020/1/2019-FC-3 (Computer No.

Subject: Revision/ rationalization/ consolidation of Pension/ family Pension

FR is an letter No. WRC/39/1/2019 dated 25.07.2019 received from FCI

2. FCI has requested that appropriate guidelines/ instructions be issued to

i. for determination of emoluments for the purpose of retirement

ii. For rationalization/consolidation of pension /Family Pension in case of

iii. For dearness relief on such revised pension /family pension

3. As discussed with Director (FC-III), we may request FCI to forward a

4. Accordingly, file is put up as per DFA please.

This is regarding Revision/ rationalization/ consolidation of Pension/ family

2. FR is a representation received from FCI Retired Employees Association

Note No. #10

Note No. #11

Note No. #12

Ref Note#6 may please be seen

We may send a reminder to FCI to send a detailed proposal immediately

Note No. #13

Note No. #14

Note No. #15

Note No. #16

This is regarding Revision/ rationalization/ consolidation of Pension/ family

2. In this regard, FCI vide Letter No. WRC/39/1/2019 dated 25.07.2019

i. For determination of emoluments for the purpose of retirement benefits

ii. For rationalization/consolidation of pension /Family Pension in case of

iii. For dearness relief on such revised pension /family pension

3. This Department vide Letters dated 16.08.2019 and 05.11.2019 requested

4. In this connection, FCI has informed that a committee was constituted to

5. Thus, as per the recommendation of the committee, Basic pension may be

6. Alternatively, Pension may be revised w.e.f 01.01.2016 by applying pay

7. Further, attention is invited to legal opinion tendered by legal division of this

8. File is submitted for information and kind consideration please.

Note No. #17

Note No. #18

Note No. #19

Note No. #20

Please put up through AS Sh. Majhi.

Note No. #21

Note No. #22

Note No. #23

Ref: Above Notes.

FCI (p.1/c) has requested that appropriate guidelines/ instructions be

i. for determination of emoluments for the purpose of retirement

ii. For rationalization/consolidation of pension /Family Pension in case

iii. For dearness relief on such revised pension /family pension.

2. Further, FCI mentioned that pay revision of Category-III & IV

4. Further, attention is invited to legal opinion tendered by legal division of FCI

7. Whereas the views of FCI Legal Division is concerned as mentioned at

As mentioned at para 5,6 and 7 above, a draft has been

Note No. #24

Note No. #25

Pl. discuss on 26-02-2020.

Note No. #26

Note No. #27

Note No. #28

Note No. #29

Ref note#27 may please be seen

As per remarks of US(FC-III), mail dated 26.02.2020 sent to FCI

Note No. #30

Note No. #31

Note No. #32

Note No. #33

As per remarks of US(FC-III) at Note#27 , mails dated 26.02.2020 and

2. We may send a reminder to FCI requesting to furnish the same as

Note No. #34