KOCHI : The state government has submitted before the Kerala High Court that the collection of cess for social security pension (SSP) doesn’t make the pension statutory. According to the government, any of such pension schemes cannot be claimed as a matter of right. Though named as ‘pension’, it is only an assistance, it submitted.
The government made the submission in response to a public interest litigation filed by advocate Shibi A A of the High Court against non-disbursement of social security pension to beneficiaries.
The petitioner pointed out that the state has been collecting Social Security Cess on sale of liquor and fuel with effect from April 1, 2023, under Section 1 of Section 6 of Kerala Finance Act 2008. The government, however, is not disbursing the pension on time, the plea stated. The government is collecting cess at the rate of Rs 20 for each bottle of IMFL (Indian-made foreign liquor) having maximum retail price (MRP) between Rs 500 and Rs 999 and at the rate of Rs 40 per bottle of IMFL having MRP above Rs 1,000, and on sale of petrol and diesel at the rate of Rs 2 per litre, the petitioner said.
The government informed the court that SSP is a government scheme which is an administrative matter entirely depending on the availability of funds. In addition to three pension schemes — Indira Gandhi National Old Age Pension Scheme, Indira Gandhi National Widow Pension Scheme and Indira Gandhi National Disability Pension Scheme — the state government provides a monthly pension of Rs 1,600 to more than 3 lakh farmers and around 76,000 unmarried women above the age of 50. There is no assistance from the Union government for these two schemes. The amount required per month to effect payment to the beneficiaries of all five schemes is more that Rs 900 crore. In addition to this, the state has to find funds to the tune of Rs 90 crore per month for the disbursal of 16 Welfare Fund Board pensions. There are more than 50 lakh social security/welfare pension beneficiaries in the state, the government said.
The state said it has the authority to decide when to disburse the pension and at what rate it is to be disbursed. Despite earnest efforts, the current financial position hinders its efforts for timely disbursal of welfare pensions.
It further stated that the argument that Valayath Joseph of Chakkittapara in Kozhikode died by suicide as he did not get welfare pension is not tenable.
‘State has authority to decide on disbursal’
The state government submitted before the Kerala High Court that it has the authority to decide when to disburse the pension and at what rate it is to be disbursed.