Source: IE
Context: The Ministry of Railways provided Rs 10 lakh ex-gratia to families of 18 deceased in the New Delhi Railway Station stampede, distributing it entirely in cash.
About Ex-Gratia Payment:
- What is Ex-Gratia?
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- Ex-gratia refers to a payment made as a goodwill gesture, not a legal obligation.
- The government provides ex-gratia relief in cases like accidents, natural disasters, and tragedies.
- Legal Framework Governing Ex-Gratia:
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- No specific statutory law governs ex-gratia payments.
- The concerned ministry or department determines the amount and mode of disbursal.
- Railway ex-gratia payments follow the Railway Accidents and Untoward Incidents (Compensation) Rules, 1990.
- Procedure for Ex-Gratia Payments:
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- Verification of Identity: Aadhaar, legal heir certificate, and death certificate.
- Approval by Authorities: Competent authority sanctions the amount.
- Disbursal of Funds: Either cash (immediate relief) or bank transfer (final payment).
- Modes of Payment:
- Cash: Immediate assistance for initial expenses (Railway guidelines permit up to Rs 50,000 in cash).
- Bank Transfer: Aadhaar-linked Direct Benefit Transfer (DBT) for full compensation.
- Cheque/NEFT: Preferred for large amounts, ensuring accountability and transparency.
- Difference Between Ex-Gratia and Compensation:
| Aspect | Ex-Gratia | Compensation |
| Nature | Voluntary, goodwill-based | Legal obligation |
| Purpose | Immediate relief | Compensation for loss or damage |
| Legal Basis | No legal requirement | Defined under law |
| Approval | By government/officials | Decided by courts or statutes |
