Why no NFU for the Indian Armed Forces?

Brief History of NFU

The 6^th CPC granted Non-Functional Financial Upgradation (“NFFU” shortened to “NFU”) for Officers of Organized Group 'A' Services  vide GOI/DOPT OM No. AB.14017/64/2008-Estt.(RR) dated 24^th April 2009 with effect from the date of posting on or after 01.01. 2006.

DOPT FAQs vide No.AB.14017/47/2011-Estt. (RR) dated lst August, 2012 clarified that the Government should, consider batch-wise parity while empaneling and /or posting at Centre between respective batches of IAS and other organized Group A services with the gap being restricted to two years. Retired officers who are otherwise eligible as on due date shall be considered for the benefit of pay upgradation.

Vide Ministry of Finance, Department of Expenditure Notification dated 29thAugust, 2008, NFU became also be applicable to the Indian Police Service and the Indian Forest Service in their respective State Cadres with relevant state cadre controlling authorities issuing the necessary orders.

Recently. the Central Armed Police Forces (CAPFs) raised the issue of their eligibility for NFU and the Supreme Court finally paved the way for grant of NFU to officers of CAPF who function under the Home Ministry, thereby giving them the same financial benefits as are being enjoyed by officers in other government cadres.

Only the Officers of the Armed Forces who are also equivalent to Organized Group A have been left out of the orders for payment of NFU.  This does not make sense considering the logic behind the payment of NFU.

Logic for payment of NFU

Keeping in view the stagnation in promotion of CCS Group A officers, the 6th CPC recommended NFU, linking their pay scales with those of their batch officers in the IAS. That means, two years after an IAS officer is promoted, batchmates in these services are automatically upgraded to the same level (pay and perks) on a non-functional basis, irrespective of whether their ranks get promoted or not. (Source https://timesofindia.indiatimes.com/blogs/voices/the-Armed-Forces-battle-for-nfu/ ).

What about the NFU for the Armed Forces?

There is a far steeper pyramid amongst the Armed Forces officers and hence much higher levels of stagnation than in the IAS/IPS/IFS etc.  For the first selection promotion to the rank of Colonel, only about 30% of the officer candidates are promoted and 70% do not get promoted. In the Armed Forces, therefore, NFU is logically justified more for the middle level ranks of Col/Brigadier and equivalent, the ranks in which stagnation levels are the highest. 

In the IAS/IPS every officer reaches the rank of Joint Secretary and IG, whereas only about 2 per cent of the officers of the Armed Forces reach its equivalent rank of Major General. 

Why are the Armed Forces are excluded from NFU?

There are three main reasons for excluding the Armed Forces from NFU:

1.     Budgetary constraints of the Government for the Armed Forces.

2.     Government’s objections.

3.      Inadequate support for NFU from the Service Headquarters.

Permit me to discuss the third reason first.

Is it that Maj Gen/equivalent and above consider that if both pay and promotion are not linked to performance, then performance of officers who have been approved for NFU but do not get promoted will deteriorate? This is an argument of convenience if an argument at all.

Gen/ equivalent and Service Chiefs, being proven leaders, would undoubtedly know that performance is to be inspired by the leader. To generate such inspiration, senior leaders should support the case for their junior officers to draw their fair share of entitlements which Govt policies entitles them to. For true leadership, connection at the unselfish human being level is required.  

Moving on to the second reason, the objectives of the Preamble of the Indian Constitution guarantee equality for all citizens as per existing policies in government jobs too. Elected governments are responsible for upholding constitutional guarantees. The Judiciary upholds constitutional guarantees where Governments fail to do so, even if it means taking suo moto cognizance and action. 

The first reason deals with the Governments financial constraints and ballooning of Armed Forces salary and pension bills. This cannot be an excuse for non-implementation of NFU for the Armed Forces. It is the primary responsibility and duty of the Government in power to generate adequate finances that it needs to execute constitutional guarantees and its policies and programmes equitably and honestly, even at the cost of electoral considerations.

Present status of Armed Forces NFU

In December 2016, the Armed Forces Tribunal Court’s principal bench comprising Justice BP Katakey and Lt Gen Sanjiv Langer had held that the Armed Forces fulfilled all six parameters laid out by the government to categorize Group-A services. The Armed Forces Tribunal granted NFU to all Armed Forces officers on similar lines as implemented for civil services in the Sixth Pay Commission.

The government challenged the decision in the Supreme Court. The government is taking the plea that the AFT does not have the jurisdiction to decide such matters. The case was finally heard by the Supreme Court on 12 March 2019. The judgment stands reserved. (Source: https://timesofindia.indiatimes.com/blogs/voices/the-Armed-Forces-battle-for-nfu/ .

Conclusion

The Armed Forces continues to remain the only central service without NFU benefits. If the Service Chiefs/ Service Headquarters, Governments in power and the Judiciary, all do not own responsibility for ensuring that the legitimate NFU entitlements of Armed Forces officers’ are delivered to them, who else will?

The fervent hope is that the Supreme Court will grant NFU to the Armed Forces also. Such an order will be a landmark judgement upholding the core principles of justice as enshrined in our Constitution.

Disclaimer: The views expressed in this article are personal and not intended to criticize or to infringe on any person, organization or the Government and its policies in whatsoever manner.

Reference: relevant content has been quoted in this blog post from  https://timesofindia.indiatimes.com/blogs/voices/the-Armed-Forces-battle-for-nfu/