Tamil Nadu Becomes 3rd Southern State To Drag Centre To Supreme Court Over Finances

The Tamil Nadu government led by Chief Minister MK Stalin has moved an original suit before the Supreme Court against the Modi Government claiming that the Centre is withholding the relief funds for natural calamities. The southern state has filed a suit under Article 131 of the Constitution, seeking directions to the Centre to release Rs. 37,000 crore in aid for damages caused by cyclone Maichung and floods.

Tamil Nadu called Centre’s indecision over releasing financial aid illegal, arbitrary, and violative of fundamental rights under Articles 14 and 21 of the Indian Constitution.

The state has alleged that despite numerous appeals, the Centre has not provided National Disaster Response Fund (NDRF) funds to Tamil Nadu for relief and recovery.

Tamil Nadu has sought Rs. 19,692.69 crore for damage from cyclone in December 2023 and Rs. 18,214.52 crores for the damage from subsequent heavy rainfall in southern in December 2023. The state has sought Rs 2000 crore as interim relief.

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Last month, Karanataka moved the Supreme Court seeking relase of NDRF funds. According to the Karnataka government, it has waited for over five months for release of the NDRF grant before filing a writ petition in the Supreme Court against the Centre.

The drought-hit state has filed the petition under Article 32 of Constitution seeking directions to the Centre for release of NDR funds.

The Karnataka government declared drought in 223 sub-districts out of the total 236 sub-districts in the state. According to the state government it has sent three memoranda to Centre, but is yet to receive any money. According to the petition by the Karnataka government, Out of 223 affected sub-districts, 196 sub-districts have been severely affected and 27 have been moderately affected.

It has further submitted in the top court that the state received only 33 rainy days out of 122 days in last monsoon season (second-lowest in last 33 years.)

The state government has asked for Rs 18,171.44 crore from NDRF. Out of the total sought amount, they have sought Rs 4663.12 crore for crop loss input subsidy, Rs 12577.9 crore for gratuitous relief to families whose livelihood has been seriously affected due to drought, and Rs 566.78 crore for drinking water purpose, etc.

According to the petition, the state government has used the entire allocation under SDRF for the fiscal year 2023- 24 is Rs. 929.50 crore.

The CM Siddaramaiah-led government has also told the top court that due to delay in getting money from NDRF, the amount has also been spent from the State exchequer.

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The state of Kerala also dragged Centre to court over the limits put on its borrowing by the Centre citing fiscal indisciplin.

In Kerala’s case, on Monday, the Supreme Court said that prima facie it is inclined towards Centre’s argument that once a state over borrows from Centre there can be reduction in the next payouts by the Central government and that balance of convenience lies with the Union. A bench of Justices Surya Kant and KV Viswanathan pronounced the order and referred the case to a five-judge constitutional bench and observed that balance at this stage, lies in favour of the Centre.