In a recent session on Monday, the Supreme Court emphasized the need for harmony between the Central and state governments concerning the allocation of funds. The Court expressed concern over the increasing trend of state governments resorting to legal routes to seek relief against the Centre’s decisions regarding fund disbursement.
The bench, comprising Justices B R Gavai and Sandeep Mehta, addressed the matter while hearing a plea from the Karnataka government. Karnataka sought directions for the release of financial aid from the National Disaster Response Fund (NDRF) to manage drought conditions.
During the hearing, Justice Gavai urged both parties to avoid confrontation, noting the exchange of allegations between Senior Advocate Kapil Sibal, representing Karnataka, and Solicitor General Tushar Mehta, representing the Centre.
Karnataka alleged that the Centre failed to provide financial assistance for drought management despite the statutory requirement to decide within a month of receiving the Inter-Ministerial Central Team (IMCT) report. Sibal argued that Karnataka’s deadline expired in December 2023 without any response from the Centre.
In response, Mehta questioned the timing of Karnataka’s plea, suggesting political motives ahead of the upcoming Lok Sabha elections. He emphasized that direct dialogue between the state and Centre could have resolved the issue without court intervention.
Acknowledging a growing trend of states approaching the Court over fund disputes with the Centre, the bench directed Attorney General R Venkataramani and Solicitor General Tushar Mehta to provide further instructions on the matter within two weeks.
Meanwhile, Karnataka Chief Minister Siddaramaiah accused the Centre of presenting false information to the Court. He condemned Mehta’s insinuation of political motives behind Karnataka’s plea.
The dispute between the Centre and southern states, including Karnataka, Tamil Nadu, and Kerala, over fund allocation and tax devolution has garnered attention, particularly ahead of the Lok Sabha elections. Recent petitions from Tamil Nadu and Karnataka highlight the ongoing struggle for financial assistance in disaster-affected regions.
The issue also resonated in Parliament, where Union Finance Minister Nirmala Sitharaman and Congress’ Adhir Ranjan Chowdhury clashed over allegations of biased fund allocation.
The southern states have been vocal about their grievances, even staging protests in Delhi, alleging discrimination in federal fund allocation. However, Finance Secretary TV Somanathan emphasized that fund allocations adhere to uniform guidelines, denying any discriminatory practices.
The Supreme Court’s intervention underscores the need for amicable resolutions to disputes between the Centre and states, particularly concerning vital issues like disaster relief and financial allocations.
Comments