7th Pay Commission: PNB scam derails pay hike, proposal shelved for now
There could be some very bad news on its way for those Central Government employees awaiting news on the 7th Pay Commission. A process that was set into motion and should have been effective by April 1 minus the arrears may get further delayed.
The scams that have been unearthed are contributing to the delay and hence employees awaiting good news will have to wait much longer for their pay hike.
How scams are delaying pay hike
Recently one of the biggest scams in banking history was revealed. It was the PNB scam worth Rs 12,400 crore involving Nirav Modi and Mehul Choksi. Both have fled the country and this scam has added a huge burden on the exchequer of the government. This is the main reason why the pay hike is being delayed, sources say.
Salary hike may not come this year
While in some quarters it has been indicated that the pay hike may be delayed in others, it is being stated that it may not come at all. Other sources indicate that the government may go in for a review only next year.
Recovery most important
It is just not the PNB scam, but several other banks too are facing issues of loan defraud. This has put an immense burden on the exchequer of the Central government. Currently the investigation and seizures are underway. Unless the banks are able to recover the entire amount this issue relating to pay hike and fitment factor would continue to hang in balance.
No good news on 7th Pay Commission
It is almost confirmed that there will be no good news on the 7th Pay Commission. While some government sources say that they are trying to work on something as it concerns lakhs of employees in other quarters it is being said for now it has been put on hold.