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Supreme Court Orders Assam Govt to Pay ₹5 Lakh to 40 Former Appointees in Assam Terror Rehabilitation Scheme

The Supreme Court has directed the Assam Government to pay ₹5 lakh to 40 former appointees whose jobs were terminated under a terror rehabilitation scheme, modifying the Gauhati High Court’s earlier order and emphasising equitable justice for terror-affected families.
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Assam/New Delhi: In a significant judgment aimed at delivering justice to individuals affected by terrorism in Assam, the Supreme Court of India has directed the Assam Government to pay ₹5 lakh each to 40 former appointees whose government appointments were terminated despite being part of a welfare scheme designed to rehabilitate terror-affected families. 

The Apex Court’s order modifies a previous ruling by the Gauhati High Court and reflects the judiciary’s efforts to balance procedural technicalities with substantive justice for victims of unrest in the northeastern state. 

Background of Assam Terror Rehabilitation Scheme

Assam has witnessed decades of insurgency, ethnic unrest, and militant activities involving various groups such as the United Liberation Front of Asom (ULFA), which have collectively resulted in loss of life, displacement, and socio-economic destabilisation. 

Read also: FIR Shockwaves in Assam: Retd IAS Hitesh Dev Sarma Accused of Threats Over Coverage of Singer Zubeen Garg Protest

To support families affected by terrorism and insurgency, the Assam Government formulated special welfare schemes, one of which included the appointment of eligible members from such families as Lower Division Assistants (LDAs) under state services. 

The intention behind this scheme was to promote rehabilitation, livelihood security, and social dignity for families that bore the brunt of violence and terror across the state. However, years later, administrative irregularities and disputes over the validity of appointments led to the termination of services for 40 such appointees, triggering legal challenges in the courts. 

Assam Terror Rehabilitation Scheme: High Court Proceedings and the Supreme Court Appeal

Initially, the Gauhati High Court had quashed the Assam Government’s termination orders, ruling that the cancellations were invalid and that the reinstatement of the affected employees was appropriate. 

However, following protracted legal proceedings and administrative responses from the state, Assam expressed that reinstating these employees was no longer feasible due to the passage of a long time and changed circumstances. Instead, the state offered a monetary settlement as an alternative to reinstatement. 

The matter was subsequently taken to the Supreme Court of India, where a Constitution Bench led by Justice J.K. Maheshwari and Justice Vijay Bishnoi considered the appeals on both legal and humanitarian grounds. 

Supreme Court Order: Compensation Over Reinstatement

In its order delivered on 13 December 2025, the Supreme Court modified the Gauhati High Court’s judgment by directing that, in lieu of reinstating the 40 terminated employees, the Assam Government must pay each of them a one-time compensation of ₹5,00,000 (Five Lakhs INR). 

The bench clarified that it was an equitable compromise considering the lengthy delay, changed administrative circumstances, and the state’s offer of financial settlement rather than restoration of service. 

The Court ordered that the payments should be disbursed within a period of two months and that the state must submit a compliance report to the Supreme Court registry upon completion. 

Read also: UP Bar Council Interview Fee Row: Supreme Court Directed the Bar Council Of India to Intervene and Called it Very Shocking


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