Beneficiary Of Fraud Can't Be Supported By Public Money: Calcutta HC Restrains State From Paying Stipend To Staff Whose Jobs Were Cancelled By SC

The Calcutta High Court has restrained the West Bengal government from paying a 'stipend' to over 25 thousand Group C and D non-teaching staff whose appointments had been cancelled by the Supreme Court in light of the cash for jobs recruitment scam.

Earlier, Justice Amrita Sinha had stayed the state's decision to pay an allowance of Rs 25,000 and Rs 20,000 to these staff members, whose appointments had been annulled.

At the present hearing, the court directed that the state would be restrained from making any further such payments till September 2025, to these staff members, who had had their appointments cancelled by the Supreme Court. It held:

Prima facie, it appears that the State has sought to provide financial support to candidates who failed to retain their job in view of the order passed by the Hon'ble Court. Specific observation of the Hon'ble Supreme Court in the judgment dated 3rd April, 2025 is that the service of the tainted candidates be terminated and they should refund any salary/payment received since their appointments were the result of fraud, which amounts to cheating.

Once the highest Court of the land has decided the issue of illegal appointment conclusively and opined that the appointments were result of fraud, no person who was the beneficiary of a fraudulent act of the statutory authority ought to be provided any support, that too, from the public exchequer, the court added.

Court noted that when the Supreme Court had terminated the employment of the aforesaid employees, it had directed that they refund any salary or payments received, the state could not vow to support the beneficiaries of fraud with the public exchequer.

The court also noted that since the money was for the financial relief of the former staff, it would naturally entail that if their review petition is dismissed, these staff would not be in any position to return the money received as stipend from the state. It held:

The law laid down by the highest Court of the land is binding upon all and everybody will be bound to follow the same no matter how unpalatable it is. The faith and trust of the public in the judicial system cannot be permitted to be eroded. The act of the State respondents in formulating the impugned Scheme, prima facie, appears to overreach the order passed by the High Court affirmed by the Hon'ble Supreme Court.

Accordingly, the court stopped any payment by the state under the said scheme till 26th September 2025.

Click here to read order