📷 Image: Wikimedia Commons / Pinakpani
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Supreme Court orders Rs 1 lakh compensation for employees of closed Bihar and Jharkhand state corporations
✍️ Amar Ujala · Bihar
🗓 30 Sep 2026, 10:00 AM
👁 10
The Supreme Court directed that workers of defunct state corporations in Bihar and Jharkhand receive a one‑lakh‑rupee settlement each, to be paid within three months.
The apex court issued a landmark order concerning pending dues of employees and labourers of several state‑run corporations that have been shut down in Bihar and Jharkhand. The judgment mandates that each eligible worker receive a compensation package of Rs 1 lakh.
The court further instructed the respective state governments to ensure that the full amount is disbursed within a three‑month period from the date of the order. Administrative mechanisms for verification of claimants and release of funds have been placed under the supervision of the concerned state departments.
Legal experts note that the ruling aims to provide swift relief to thousands of former staff who have been awaiting settlement for years. The decision also underscores the judiciary's role in enforcing financial accountability of public enterprises that cease operations.
The court further instructed the respective state governments to ensure that the full amount is disbursed within a three‑month period from the date of the order. Administrative mechanisms for verification of claimants and release of funds have been placed under the supervision of the concerned state departments.
Legal experts note that the ruling aims to provide swift relief to thousands of former staff who have been awaiting settlement for years. The decision also underscores the judiciary's role in enforcing financial accountability of public enterprises that cease operations.