SC relieves LIC of a crucial financial

5.SC relieves LIC of a crucial financial burden ahead of its IPO

burden ahead of its IPO.

The Supreme Court spared LIC from a massive financial burden by resolving a 40-year-old problem regarding the absorption of 12,000 temporary staff before the mammoth Rs 21,000 cr IPO. SC governed that, these employees would be entitled to cash compensation, not employment.

A court of justice D Y Chandrachud, Surya Kant, and Vikram Nath stated that as a public employer, LIC’s employment procedure must adhere to constitutional principles of fairness and transparency. Allowing back-door admissions into public service is anathema to public service.

Checking the genuineness of claim by the new committee, the person eligible for the norms i.e. 70 days employment in Class IV post in 3 years during 1985-1991 and 85 days in 3 years for class III during the same period shall be entitled to compensation of Rs. 50,000 for every year of service or part thereof, said the three-judge bench.

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