SC asks Centre to amicably resolve drought fund row with Karnataka
In its last hearing on April 8, the Supreme Court favoured amicable resolutions of such disputes instead of court battles, as it gave the Centre some time to examine the state’s request
The Supreme Court on Monday asked the central government to amicably resolve the dispute over the Karnataka government’s request to release ₹35,162 crore for drought relief citing “grave humanitarian distress” and a “calamity” of severe nature faced by the southern state.
Even as the Centre told a bench led by justice Bhushan R Gavai that it has secured a clearance from the Election Commission of India (ECI) to address the Karnataka government’s request, the court emphasised that the Centre and the states must work together regarding the release of funds.
Appearing before the bench that also comprised justice Sandeep Mehta, attorney general R Venkataramani said that he expects the matter to proceed within a week after the ECI’s nod.
“The Election Commission has allowed the Centre to deal with the issue. Something should happen before next Monday. It will be done expeditiously. There is no need for an argument right now,” the A-G submitted.
Responding, the bench stressed the need for cooperation between the Centre and states.
“It should be done amicably. These matters should not require interference from the court. We have a federal structure. Union and states should work together,” it emphasised.
A-G Venkataramani and solicitor general Tushar Mehta, both representing the Centre, sought a week from the court to resolve the matter and come back. The bench accepted their request and deferred the hearing as senior counsel Kapil Sibal, appearing for the Karnataka government, also agreed to the adjournment.
In its last hearing on April 8, the Supreme Court favoured amicable resolutions of such disputes instead of court battles, as it gave the Centre some time to examine the state’s request.
On the day, the state government had sought to involve the ECI in the proceedings, arguing that the Centre should not fail to act citing a lack of approval from the polling body due to the Lok Sabha elections.
The Karnataka government, in its writ petition filed earlier this month, pointed out the failure of the Union government’s Ministry of Home Affairs to take a final decision and release financial assistance from the National Disaster Response Fund (NDRF), despite six months passing since the filing of a report by the Inter-Ministerial Central Team (IMCT).
The Karnataka government’s plea, filed through advocate DL Chidananda, emphasised agriculture as a primary source of livelihood for a large section of the state’s population, highlighting the damage to crops and livestock due to the present drought situation. The delay in convening a high-level committee meeting to approve relief from NDRF was also criticised.
“The present drought situation has damaged crops and affected livestock, leading to lower yields, reduced income for farmers, and increased food prices. The situation has major economic impact resulting from losses in agriculture, impacting jobs, incomes, and overall economic growth of the state” stated the petition.
It further argued that the Centre’s inaction in releasing financial assistance for drought relief was illegal, arbitrary, and violated fundamental rights guaranteed under Articles 14 (equality) and 21 (life and liberty) of the Constitution.
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According to the plea, the state’s citizens’ fundamental right to life has been harmed by the Centre, which has not called a meeting of the high-level committee to address the subcommittee report of the national executive committee on the memorandums submitted by the state government requesting financial assistance.
Earlier this month, a similar petition was filed in the apex court by the Tamil Nadu government as well. Tamil Nadu sought direction to the Centre to release ₹19,692.69 crore as financial assistance for damage caused by cyclone ‘Michaung’ in December 2023, alleging that funds were not made available despite repeated requests.
On April 1, a different bench in the Supreme Court had rejected the Kerala government’s plea for directing the Union government to relax its borrowing cap restrictions so that the state could borrow additional funds in the current fiscal year, noting that any such an order might set a “bad precedent in law” that would enable states to flout fiscal policies and still successfully claim additional borrowings.
The deluge of petitions by various states demanding directives to the Union government for the release of funds represents the judiciary’s expanding involvement in scrutinising federal financial relations and state autonomy under India’s intricate fiscal system.