HRA is not a right but a compensatory allowance, says HC

A government employee is not entitled to claim house rent allowance (HRA) as a matter of right, the Delhi High Court has held, saying that it is compensatory allowance paid in exchange of accommodation facilities.

“HRA is not a part of pay but is a compensatory allowance in lieu of accommodation… and is not to be used as a source of profit. The moment the amenity is provided or offered, the employees should cease to be in receipt of the compensation which is given for want of it,” Justice Rajiv Sahai Endlaw said in a recent judgement.

The High Court passed the order on a petition of MCD challenging the order of an Industrial Tribunal to pay HRA to its employees even though they were residing illegally in the premises owned by the civic body.