The high court had earlier suspended Chandra and imposed a fine of Rs 5 lakh on the LG (which he had to bear from his own fund) for not complying with an order on releasing benefits to workers. The SC, which had stayed the high court order on August 4, closed the contempt proceedings on August 14, 2023 and asked the Andaman and Nicobar Islands administration to comply with the directions of the Calcutta High Court on payment of arrears and framing of a regularisation scheme for workers by November 30.

It was alleged that the union territory administration had asked the workers to agree to the condition that they will not seek regularisation and only then their wage arrears will be paid. This had irked the high court.

The SC was told that the undertaking to forego the claim of regularisation as a pre-condition for the release of outstanding payments was in flagrant violation of the high court order. The regularisation scheme shall be framed as per the statement made by the administration before the Calcutta High Court, it said.