On June 2, 2025, the Punjab & Haryana High Court delivered a significant ruling concerning the Annual Confidential Reports (ACRs) of government employees. The court emphasized that ACRs are not merely administrative tools but have a direct impact on an employee’s civil rights, particularly regarding promotions and benefits like the Modified Assured Career Progression (MACP). Therefore, any adverse remarks in an ACR must be accompanied by clear and specific reasons.

Justices Sanjeev Prakash Sharma and Meenakshi I. Mehta stated that adverse entries in ACRs can deprive employees of career advancements. Consequently, such remarks should not be made arbitrarily and must be substantiated with valid reasons to ensure fairness and transparency in the evaluation process .

This ruling reinforces the principle that employees should be protected from unjustified negative assessments, ensuring that their professional growth is evaluated based on merit and documented performance.

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