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The Supreme Court set aside the PMGSY recovery order, holding that cross contract recovery can be effected only with express authority and must observe natural justice. It ordered the release of Rs.84,17,003 plus 6% interest from 27 September 2025 to the contractor.
Bombay High Court rules that ad hoc employees under the Pradhan Mantri Gram Sadak Yojana (PMGSY) with prolonged service are entitled to regularization and consequential benefits, reinforcing the principle of legitimate expectation in public employment. The judgment mandates permanency from the date of entry into service, impacting thousands of contractual government employees.
Bombay HC rules that prolonged contractual service under PMGSY (over 10 years) creates an enforceable right to regularization, including back wages and consequential benefits. The judgment rejects artificial service breaks and underscores the state's obligation to absorb long-term contractual workers, impacting thousands of PMGSY employees across Maharashtra.