Department of Posts Clarifies that LDCE Promotions Count for MACP Benefits - Directs Circles to Contest Related Court Cases

Department of Posts Clarification on MACP Benefits and LDCE Promotions

Letter No.: 4-7/MACPS/2019-PCC

Date: 15.07.2026

Subject: Representations and court cases seeking MACP financial upgradation by treating promotions through LDCE as direct entry appointments.

Background

Following the Hon’ble Supreme Court’s order dated 24.02.2026 in a batch of SLPs, several officials and retirees sought additional financial upgradations under the Modified Assured Career Progression (MACP) Scheme by claiming that appointments obtained through Limited Departmental Competitive Examination (LDCE) should be treated as direct entry appointments.

Department’s Stand

The Department of Posts, after consultation with DoP&T, clarified that:

• The Supreme Court order did not decide the issue relating to MACP benefits.
• The Court left the question of law open and made no observation on the MACP Scheme.
• DoP&T advised that such cases should continue to be contested before judicial forums.
• A Review Petition against the Supreme Court order is being initiated in consultation with the Department of Legal Affairs.

Key Grounds for Contesting Claims

1. LDCE Appointments are Promotions
   • Recruitment Rules clearly classify appointments through LDCE under the promotion quota and not as direct recruitment.
   • Posts such as Postman, Postal Assistant, and Inspector Posts have separate quotas for direct recruitment and promotion.
2. MACP Benefits Already Account for Promotions
   • MACP allows a maximum of three financial upgradations after 10, 20, and 30 years of service from the direct entry grade.
   • Regular promotions and earlier financial upgradations under TBOP/BCR/ACP/MACP are already counted while determining eligibility.
3. Direct Recruitment Conditions Do Not Apply
   • LDCE candidates are departmental employees who receive age and qualification relaxations unavailable to direct recruits.
   • They compete against departmental promotion quota vacancies only.
4. Purpose of MACP
   • MACP is intended to address career stagnation.
   • Ignoring LDCE promotions would result in more than three financial upgradations, contrary to the scheme and causing additional financial burden on the Government.

Judicial Support Cited

The Department relied on:

• Supreme Court judgment dated 12.12.2024.
• Madras High Court judgment dated 06.06.2022.
• Patna High Court judgment dated 11.09.2024.
• CAT Full Bench, Chennai judgment dated 27.01.2025.
• Supreme Court judgment in P. Subramaniyan vs Union of India (15.03.2019).

All these decisions support the view that LDCE is an accelerated promotion mechanism and not direct recruitment.

Instructions to Circles

• Dispose of representations based on the grounds provided in Annexure-I.
• Contest all pending and future CAT/Court cases on the same grounds.
• Challenge adverse judgments before higher courts until further instructions are issued.

Conclusion

The Department has reaffirmed that appointments through LDCE are promotions, not direct recruitment, and therefore must be counted while determining eligibility under the MACP Scheme. Employees who have already received the permissible three financial upgradations are not entitled to additional MACP benefits on the basis of LDCE appointments.