In a big win for the Delhi government amid a protracted tussle with the Centre, the Supreme Court on Thursday ruled that Delhi government had legislative and executive power over "services", including the Indian Administrative Service (IAS), except law and order and land. In an unanimous verdict, a five-judge Constitution bench headed by Chief Justice DY Chandrachud said the Lieutenant Governor (L-G) was bound by the decision of Delhi government over services apart from public order, police and land.


"Union territory Delhi has 'sui generis' (unique) character and has legislative and executive power over services," the top court said.


The Supreme Court bench, also comprising Justices MR Shah, Krishna Murari, Hima Kohli and P S Narasimha, said if a democratically elected government was not allowed to control its officers and hold them to account, then its responsibility towards the legislature and public is diluted. 


"L-G shall exercise powers under the administrative role as entrusted by the President. Executive administration can only extend to matters which fall outside the scope of the legislative assembly...and it cannot mean administration over entire NCT Delhi. Otherwise, the purpose of having a separate elected body in Delhi will be rendered futile," the court said.


"Democratically elected government shall have control over its officers. If officers are not responding to the government, the collective responsibility is diluted. If officers feel they are insulated from the elected government, they feel they are not accountable," the top court further said.


The court said while the National Capital Territory of Delhi (NCTD) is not a full fledged state, it remains a federal entity. Executive power of NCTD extends to all entries on which it has power to legislate, the court further said.


"It has to be ensured that governance of states is not taken over by the Union. The control of the Centre on certain subjects of the Concurrent List cannot be such that the functioning of the State is affected," CJI Chandrachud said.


The Supreme Court had reserved its order on January 18 after hearing the arguments for almost four-and-a-half days.


The petition filed by the Delhi government came as a result of a split verdict of February 14, 2019, in which a two-judge bench of Justices A K Sikri and Ashok Bhushan, both now retired, recommended to the Chief Justice that a three-judge bench be set up to decide the issue of control of services in the national capital.


While Justice Bhushan had ruled that Delhi government had no power at all over the administrative services, Justice Sikri had said the transfer or posting of officers in the top echelons of the bureaucracy (joint director and above) can only be done by the Centre and the lieutenant governor's view will prevail in case of a difference of opinion on matters related to the other bureaucrats.


In a verdict in 2018, a five-judge Constitution bench had unanimously ruled that the Delhi LG was bound by the aid and advice of the elected government, and both needed to work harmoniously with each other.