The Supreme Court of India has declined to grant an urgent hearing to a plea filed by the Tamil Nadu government concerning the alleged withholding of over ₹2,151 crore in central funds allocated for education. The funds in question fall under the Samagra Shiksha Scheme (SSS) for the financial year 2024-2025. A Vacation Bench, presided over by Justice Prashant Kumar Mishra, addressed the matter and determined that there was no immediate urgency necessitating an expedited hearing.
The Tamil Nadu government has formally challenged the Union government's actions, asserting that the non-disbursement of funds is linked to the state's opposition to the National Education Policy (NEP) 2020 and the PM SHRI Schools scheme. The state argues that these are separate initiatives and should not be preconditions for the release of funds mandated under the Right to Education (RTE) Act, 2009.
Senior Advocate P. Wilson, representing Tamil Nadu, brought the matter before the court, emphasizing that the withholding of funds was affecting approximately 48 lakh students, 2.21 lakh teachers, and nearly 33,000 staff members within the state. Wilson highlighted the commencement of the new academic year on June 3rd, underscoring the urgency for the funds to be released. However, Justice Mishra inquired about the duration of the fund deprivation, to which Wilson responded that the funds had not been disbursed for the past year, and the suit was officially filed on May 20, 2025. Despite these arguments, the court maintained its stance that no urgency was evident.
In its suit, drafted by advocates Richardson Wilson and Apoorv Malhotra, the Tamil Nadu government contends that the primary reason for the non-disbursement of funds is the state's strong opposition to the imposition of the NEP 2020, particularly its three-language formula, and the PM SHRI Schools Scheme. The state asserts that the Samagra Shiksha Scheme is not connected to either the NEP-2020 or the PM SHRI Schools' Scheme.
The state has also sought a judicial declaration that NEP-2020 and PM SHRI Schools' Scheme are not binding on Tamil Nadu and has urged the court to declare the linkage of the State's entitlement to receive Central share of education funds under the Samagra Shiksha Scheme with the total implementation of the NEP-2020 PM SHRI Schools “unconstitutional, illegal, arbitrary and unreasonable”. The suit wants the Centre to pay up Rs. 2291 crore to the State within a specified time fixed by the apex court along with 6% interest per annum on the principal sum from May 1, 2025 till the date of realisation of the decree.
The DMK government's plea invokes Article 131 of the Constitution, which grants the Supreme Court exclusive jurisdiction to hear disputes between the Centre and one or more states. The state government has characterized the Centre's actions as coercive tactics designed to force the implementation of the NEP 2020, which the state strongly objects to. The lawsuit seeks a declaration that the Centre's actions to link Tamil Nadu's entitlement to receive funds under the Samagra Shiksha Scheme to the implementation of the NEP, 2020, and the PM SHRI Schools Scheme within the state are unconstitutional, illegal, arbitrary, and unreasonable.
The suit further alleges that the withholding of funds is crippling the implementation of the Right of Children to Free and Compulsory Education Act, 2009, and impacting 43.9 lakh students, 2.2 lakh teachers, and over 32,000 school staff in the state. The state's legal team argues that the Centre's move violates the spirit of cooperative federalism and amounts to an usurpation of the state's constitutional powers to legislate on education.
While the Supreme Court has declined to hear the matter on an urgent basis, the suit remains listed for regular hearing. The regular functioning of the top court will resume on July 14, 2025.
