Madras HC says RTE funds must be released independently of NEP

The Madras High Court has clarified that the union government’s obligation to release funds to Tamil Nadu under the Right to Education (RTE) Act operates independently and should not be linked to the National Education Policy 2020 (NEP).

The court highlighted that the financial responsibility of covering private school fees under the RTE Act is separate from other educational initiatives and must be honored to uphold the state’s educational commitments.

The court noted that the RTE Act imposes a concurrent financial duty on both central and state governments, including a specific percentage of expenditure as the central share.

It emphasized that "funds payable to the state government, representing the union government’s share, towards discharging the RTE Act obligations need not be linked to NEP-2020."

Reinforcing Tamil Nadu’s statutory responsibility, the court ruled that the state must reimburse private unaided schools for student fees as mandated by the RTE Act.

It added, "The state government has the non-derogable obligation to reimburse the fee to private unaided schools, and non-receipt of funds from the government cannot be cited as a reason to wriggle out of that statutory obligation."

The verdict follows an ongoing legal dispute between Tamil Nadu and the union government over the non-release of ₹2,152 crore under the Samagra Shiksha scheme.

The state has opposed the conditions attached to the PM SHRI scheme and other NEP-linked provisions.

Noting that RTE-related funds amount to less than ₹200 crore, the court said they should be disbursed without delay.

To ensure a smoother flow of funds, the court directed the central government to "consider delinking the RTE component from the Samagra Shiksha Scheme and disburse the funds."

This would allow for a more efficient funding mechanism dedicated solely to the RTE Act.

The court also instructed the Tamil Nadu government to follow the statutory timelines for releasing funds to schools.

It said, "The quantum of disbursement to schools cannot be arbitrary, but it has to be as per section 12(2) of the Act," stressing timely and accurate allocation of funds.

By asserting the financial autonomy of the RTE Act, the court aims to reinforce the integrity of education funding in Tamil Nadu and facilitate smoother administration of educational entitlements.