'Why not use money for development?' SC slams 'freebies' culture
What's the story
The Supreme Court has slammed the practice of state governments announcing "freebies" just ahead of elections, saying it hampers long-term economic development. Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Vipul Pancholi, made these remarks while hearing a petition by Tamil Nadu Power Distribution Company Ltd. The petition had challenged Rule 23 of the Electricity Amendment Rules 2024.
Court proceedings
Is it in public interest, asks court
During the hearing, CJI Kant questioned if it was in the public interest for the state to absorb power bills. He asked what kind of culture was being developed by indiscriminately distributing state benefits without distinguishing between those who can afford to pay and those who cannot. "But without drawing any distinction between those who can afford and those who cannot afford, if you start giving, will it not amount to a sort of appeasing policy?" he asked.
National impact
CJI Kant concerned over overall development of nation
CJI Kant also expressed concern over the overall development of the nation. He said that even revenue surplus states should spend money on developing infrastructure like roads, hospitals, and schools instead of distributing freebies during elections. "Instead of that, you keep on distributing food, clothes, and people enjoy everything at the time of elections. What is happening in this country?" CJI asked.
Welfare state
CJI raises concerns about direct cash transfer policies
The CJI questioned why freebies should be distributed to all without distinction. He said while it's understandable to help marginalized people, affluent ones shouldn't benefit from such schemes. "There are children who are bright but cannot afford to go to medical colleges, State must help them. But the persons who...has all means available and are affluent and therefore any kind of freebie first comes to their pocket. Is it not high time for the states to revisit these policy frameworks?"
SC
'How are they going to learn to work'
The CJI also raised concerns about direct cash transfer policies, asking if they would discourage people from working and contributing to nation-building efforts. "If you start giving right from the morning free food, free gas, free electricity... You are directly transferring cash in the account. Why the people should work then? From where they are going to learn the work when they know everything I will get from one platform? Is it the nation-building we are doing?" he asked.
Case update
SC agrees to examine petition challenging Electricity Amendment Rules
The bench said that its concern is that states are running in deficit but they are still handing out freebies. "From where that money is coming? Why shouldn't it be dedicated for development purposes? You can have a long term plan for roads, irrigation, electrical." The SC has agreed to examine the Tamil Nadu Power Distribution Company Ltd's petition challenging Rule 23 of the Electricity Amendment Rules 2024. The court issued a notice to the Union government in this regard.