Tamil Nadu moves SC against Union govt over ₹2,000-crore Samagra Shiksha dues

The state alleges the union government withheld funds in education as pressure to implement NEP-2020, affecting lakhs of students, teachers, and staff across the state.The Tamil Nadu government has approached the Supreme Court with an original suit accusing the Union government of halting the release of its annual share of education funds—amounting to over ₹2,000 crore—under the Samagra Shiksha Scheme. The state alleges that the denial is a consequence of its opposition to the National Education Policy (NEP) 2020. Filed through state counsel Sabarish Subramanian and represented by senior advocate P Wilson, the suit claims that the “glaring and apparent reason” behind the non-disbursal of funds is Tamil Nadu’s resistance to key aspects of the NEP-2020, particularly the three-language formula and the PM SHRI Schools Scheme. The latter mandates complete implementation of the NEP-2020 framework by participating states. The suit claims that there is no legal or program connection between the Samagra Shiksha Scheme and the NEP-2020 or the PM SHRI initiative, and it argues that not giving out funds goes against the idea of cooperative federalism. “The Union Government, by withholding the state’s entitlement to receive funds under the Samagra Shiksha Scheme, is in ignorance of the doctrine of cooperative federalism. The halt of education funds amounts to the usurpation of the constitutional power of the state to legislate under Entry 25, List III (education). The Union Government seeks to coerce the State to implement the NEP-2020 throughout the State in its entirety and to deviate from the education regime followed in the State,” the suit said. Tamil Nadu has termed the union government’s move as a “blatant diktat” aimed at forcing implementation of NEP-2020, arguing that ₹2,151.59 crore of the government’s 60% share for 2025–26, already approved by the Project Approval Board, has not been disbursed. This has significantly disrupted the functioning of the Samagra Shiksha Scheme and the implementation of the Right to Education Act, 2009, in the state. According to the state, the lack of funding has adversely affected nearly 44 lakh students, over 2.2 lakh teachers, and more than 32,000 staff members. The total approved outlay under the scheme for the state stood at ₹3,585.99 crore. Tamil Nadu is seeking a judicial declaration that the NEP-2020 and the PM SHRI Schools Scheme are not binding on the state. It has requested the court to declare the linkage of central education funds to NEP-2020 implementation “unconstitutional, illegal, arbitrary, and unreasonable.” The state has demanded the release of ₹2,291 crore along with 6% annual interest from May 1, 2025, until the final payment is made. Chief Minister MK Stalin had previously written to Prime Minister Narendra Modi, objecting to the alleged conditionality imposed on funding. In his communication, Stalin said that the linkage was “fundamentally unacceptable” and constituted a pressure tactic. The government, according to the suit, did not respond positively to the chief minister’s concerns. The suit also highlights Tamil Nadu’s longstanding opposition to the three-language formula. It refers to a resolution passed by the State Legislative Assembly in 1968 rejecting the Official Languages (Amendment) Act, 1967. The resolution mandated the teaching of only Tamil and English in schools across the state, thereby excluding Hindi. Tamil Nadu has since been exempted from implementing the Official Languages Act, 1963, as per the Official Languages Rules, 1976. “This state resolution called for the scrapping of the three-language formula and mandated that only Tamil and English be taught in schools across Tamil Nadu, with Hindi being excluded from the curriculum,” the suit recalled. The state also referenced Clause 4.13 of NEP-2020, which recommends a three-language formula “under the guise of multilingualism.” “The State has enacted legislation that duly conforms with the two-language policy envisioned by it. The third language is left to the option of the students who do not have Tamil or English as their mother tongue. Section 3 of the Tamil Nadu Tamil Learning Act, 2006, mandates the teaching of the Tamil language as a compulsory subject from Classes 1 to 10 in all schools in a phased manner… The Union government cannot compel the state to implement its own policy under the guise of providing financial support,” it said.