AP High Court orders to pay MGNREGA bills with 12 percent interest

The Andhra Pradesh High Court has given a key verdict regarding the payment of pending bills under the Employment Guarantee Scheme in Andhra Pradesh. The court which heard 1013 petitions directed the government to pay the bills within four weeks. The High Court had earlier struck down a circular issued by the government seeking a 20 per cent reduction in employment guarantee pending bills. The final judgment ordered that the arrears be paid within four weeks with 12 percent interest. The court also clarified that 12 per cent interest should be added to the pending amount on bills already paid.

There have been lengthy arguments in the High Court on the petitions filed challenging the non-payment of bills by the government in respect of employment guarantee works and other contract work done during Chandrababu's tenure. The arguments were completed by Monday. Lawyers for the petitioners demanded that the government be ordered to pay the actual amount, including interest, for stopping the bill in the name of vigilance. The verdict on Tuesday revealed the judgment expressing consent with petitioners.

While the cases are pending in the court, the government has been paying funds to several petitioners. However, the court was impatient that the details of the affidavit filed by the central government were different from what the Panchayati Raj had said during the last hearing. Finally, it ruled today that even pending bills, even those that have been paid in half will be charged at 12 per cent interest.