The Punjab and Haryana High Court has directed the Punjab government to clear dearness allowance (DA) arrears worth ₹14,191 crore within 15 days, in a ruling that the Shiromani Akali Dal (SAD) on Monday, 3 August described as a damning indictment of the Aam Aadmi Party (AAP) government's attitude toward state employees. The order has reignited a political confrontation over Punjab's fiscal condition and its treatment of government workers.

What the Court Ordered

The High Court's directive requires the Punjab government to release pending DA arrears of ₹14,191 crore owed to state employees within a fortnight. According to reports, the government moved the court on Monday itself seeking permission to pay the amount in instalments rather than as a lump sum — indicating it does not intend to comply with the timeline as ordered.

What the SAD Alleged in Court

Akali Dal leader Bikram Singh Majithia, a former Cabinet minister, told reporters in Chandigarh that the government's own submissions in court had exposed a contradiction between its public messaging and its legal position. He said the AAP government had constituted a three-member committee comprising senior leaders Harpal Cheema, Aman Arora, and Baljit Kaur, which recommended against granting additional DA benefits to state employees, arguing their benefits were already on a par with or better than those of Central government employees.

The committee also cited an economic crisis in the state and asserted, reportedly in court, that Punjab was not bound to follow Central government DA revisions. Majithia argued these on-record submissions directly contradict Chief Minister Bhagwant Mann's public claims that the state economy is performing well.

The Fiscal Contradiction at the Centre of the Row

'The AAP government's own admission in court states that the majority of state funds are being spent on salaries, pensions, loan instalments, and subsidies,' Majithia said, adding that this undermined the party's development narrative. He argued the government was 'saying one thing in public and another in court.'

This comes amid a broader debate over Punjab's finances, with the state carrying a substantial debt burden. The admission, if accurate, would suggest limited fiscal headroom — making the DA arrear clearance a significant challenge within the court's 15-day window.

SAD's Broader Charges on Spending Priorities

Majithia further alleged that the Punjab government had spent approximately ₹8,000 crore on advertisements and public events, while leaving employee DA dues uncleared. He also claimed that minister Harjot Bains had drawn government travel allowances for foreign tours without the requisite political clearance, and that crores had been spent on chartered flights to ferry AAP national convenor Arvind Kejriwal across the country at Punjab government expense.

'All this money could have been used to protect the welfare of government employees,' Majithia said. The SAD simultaneously appealed to government employees to back the party, positioning itself as their advocate ahead of any future electoral contest.

What Comes Next

The immediate question is whether the Punjab government will comply with the High Court's 15-day deadline or secure a modified payment schedule through its instalment request. The court's response to that plea will determine the timeline for actual disbursement. For state employees awaiting the arrears, the legal battle is far from over — and the political fallout is likely to intensify as the deadline approaches.