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KDA officers not to be paid salaries if dues of retired employees not settled by Dec 31

The Sindh High Court (SHC) on Friday ordered that the salaries of the officers of grade 17 and above in the Karachi Development Authority (KDA) shall be stopped with effect from January 1, 2021, if the post-retirement benefits of its retired employees were not settled by the end of this year.

The high court also restrained the Sindh government from transferring and posting of KDA officers and employees without the permission of the court.

Hearing petitions pertaining to the payment of outstanding dues of more than 1,000 retired KDA employees, a division bench of the SHC headed by Justice Nadeem Akhtar observed that findings of the finance and local government secretaries clearly showed that affairs of the KDA, particularly those related to finance, had not been managed in a proper manner.

The SHC also rejected the request by the KDA finance and accounts director for the grant of further six-month time for the settlement of the petitioners’ liabilities and directed the member inspection team-II to liquidate the attached TDRs, NIT units and defence saving certificates amounting to Rs821,788,754 or for any other amount and by adjusting the proceeds towards the subject liability of pension.

The high court observed that as the official assignee of the court had tested positive for Covid-19, the member inspection team, till the time the official assignee was back, shall perform such functions and exercise all such powers granted to the official assignee by the court orders.

The SHC observed that the sale/auction of the KDA properties shall now be conducted under the supervision of the official assignee or the member inspection team-II in the absence of the former.

The high court observed that it had been clarified that if the post-retirement benefits of the retired employees were not settled by December 31, the salary of the present employees starting from the top shall be stopped and the properties/assets of KDA shall be attached and sold in order to satisfy the claims of the retired employees.

The secretaries of the government and the KDA director general requested the SHC to modify the order to the extent of grade 17 and above officers. The court granted the request.

The SHC directed the official assignee to submit a compliance report by January 19. The high court had earlier appointed the official assignee as the commissioner to ensure compliance with the court order within stipulated time by taking over the separate bank account opened by the KDA in pursuance of the court directives.

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