State not liable for pension of ADC employees recruited without Finance Department approval : Minister

By Our Correspondent

Agartala, September 24, 2026

The Tripura government is not liable for pension and other retirement benefits of employees recruited by the Tripura Tribal Areas Autonomous District Council (TTAADC) without the concurrence of the State Finance Department, Finance Minister Pranajit Singha Roy said on Wednesday.

Mr. Singha Roy said there was no dispute over the retirement benefits of employees appointed with the approval of the Finance Department. However, in cases where appointments were made without the required financial concurrence and official records, the State government could not be held responsible for the financial obligations arising from such appointments.

“The responsibility for providing pension and other retirement benefits to such employees rests with the TTAADC,” the Minister said, outlining the State government's position amid an ongoing dispute over pension payments to employees of the autonomous council.

The issue has acquired significance following proceedings before the Tripura High Court concerning retirement benefits of former TTAADC employees. The court has directed the authorities to examine the matter, while restrictions have also emerged over the release of salaries of senior Group A and Group B officers of the council pending further orders.

The Finance Minister said a number of State government employees were serving in the TTAADC on deputation and their pension and other retiral benefits were being provided according to the applicable rules.

The position was different, he said, in the case of employees recruited directly by the council without the concurrence of the Finance Department.

“If the Finance Department has not concurred with an appointment, the State government cannot be expected to have the necessary records relating to such employees,” Mr. Singha Roy said. The council, therefore, would have to explain its position regarding such appointments and the liabilities arising from them.

Finance Secretary P.K. Goel elaborated on the government's position, describing the TTAADC as an autonomous body with its own budgetary mechanism. Although the council receives a share of taxes and grants from the State government, it prepares its own budget and manages expenditure in accordance with that budget, he said.

The State government transfers the council's share of taxes and provides grants, but the responsibility for deciding how those funds are spent rests with the council, Mr. Goel said.

He also said the government did not have complete information on why the TTAADC was unable to meet its pension obligations. The State, however, would examine the matter in accordance with the directions of the High Court.

The government's position leaves open the possibility of further scrutiny of the appointments and financial records of the council while maintaining that the State cannot automatically assume pension liabilities arising from appointments made without the requisite financial approval.

The pension dispute comes at a time when the State government is also facing questions over its finances.

Mr. Singha Roy said Tripura's annual resources had declined by around ₹4,000 crore following the discontinuation of revenue deficit grants. According to him, the grant was discontinued following the recommendations of the 16th Finance Commission.

The Finance Minister, however, said the reduction in revenue support should not be interpreted as evidence of a financial crisis in the State. The government was taking steps to increase its own revenue and exercise greater control over expenditure, he said.

There was no proposal to impose new taxes on citizens, Mr. Singha Roy said. The State had approached the Union Finance Minister on the issue, while Chief Minister Manik Saha had also raised the matter with Prime Minister Narendra Modi, he said.

The government was also seeking additional financial resources through various schemes and projects. Mr. Singha Roy said Tripura had received ₹3,450 crore under the 'Pride of Hill' project. The funds could be used for project expenditure, debt repayment and other approved purposes.

Of this amount, around ₹1,000 crore would be adjusted against the State's deficit fund, he said.

Seeking to underline that the State's finances remained manageable, the Finance Minister pointed to continuing government expenditure on recruitment, festival allowances and other employee-related benefits.

At the same time, he indicated that the government would have to adopt new approaches to raise revenue and control expenditure as the State adjusts to the reduction in central revenue support.

The pension dispute involving the TTAADC, however, remains subject to the outcome of the judicial proceedings. While the State government has reiterated that it does not accept responsibility for appointments made without Finance Department concurrence, it has said that the matter will be examined in accordance with the High Court's directions.

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