(1.) CHALLENGE made in this petition is to the circular dated 25.2.2000 issued by the Finance Department of the State Government, whereby the provision of para 1(iii) of Resolution dated 15.12.1975 of the Finance Department came to be cancelled. Under Circular dated 15.12.1975,Government employees, like the petitioners, were entitled to House Rent Allowance (HRA)at the rate of 15% if place of their duties is within the limit of 8 km. from classified city.
(2.) THIS Court in a decision in the case of N.R.Parikh and others Vs. State of Gujarat and others, reported in 2002(2) GLH 567 and in the case of K.B. Zala Vs. State of Gujarat reported in 2003(1) GLH 210, has not accepted the challenge made to the above circular dated 25.2.2000 taking a view that there was a reasonable nexus and purpose to be achieved for issuing the above-said circular.
(3.) PENDING the petition, Government has issued circular dated 16.5.2008, according to which, like the petitioners of those above petitions, the present petitioners have been covered by the said circular dated 16.5.2008 and they have been drawing HRA at the rate of 15%.