New Delhi – In a significant federal standoff, the Tamil Nadu government has moved the Supreme Court under Article 131 of the Constitution, accusing the Centre of “coercive federal overreach” by withholding ₹2,151.59 crore in education funds under the Samagra Shiksha Scheme (SSS) for 2024–25, allegedly in retaliation for the State’s refusal to adopt the National Education Policy (NEP) 2020 and the PM SHRI Schools scheme.
Terming the Centre’s move a “blatant violation of cooperative federalism,” the State claimed that the denial of funds has severely impacted 43.94 lakh students, 2.21 lakh teachers, and 32,701 school staff in Tamil Nadu, while crippling the implementation of the Right of Children to Free and Compulsory Education Act, 2009 (RTE Act).
The suit, filed through Advocate Sabarish Subramanian and settled by Senior Advocate P Wilson, seeks a total of ₹2,291.3 crore including 6% interest on the withheld principal.
Tamil Nadu has argued that the Centre’s insistence on linking Samagra Shiksha Scheme disbursals with acceptance of NEP 2020 and the PM SHRI Schools initiative “lacks any executive or legislative force” and violates laws passed by the State legislature. “The NEP-2020 is a policy and vision statement… that lacks any executive or legislative force binding the Plaintiff State,” the plea asserts.
Highlighting Clause 4.13 of the NEP—which promotes a three-language formula—the State reiterated its long-standing opposition to Hindi imposition. Tamil Nadu currently follows a two-language policy (Tamil and English), as per the Tamil Nadu Tamil Learning Act, 2006, and the Tamil Nadu Uniform System of School Education Act, 2010.
The Centre, according to the suit, has argued that the PM SHRI Schools are a natural extension of the SSS despite being a separate programme. Tamil Nadu has alleged this is being used as a backdoor mechanism to enforce NEP 2020 across the country.
“Such coercive tactics are neither legally permissible nor consistent with State legislation, particularly in light of the two-language formula adopted by the State,” the suit reads.
Further, the State pointed to parliamentary responses in the Rajya Sabha indicating that for the 2024–25 financial year, funds under the SSS have been released to all States except Tamil Nadu, Kerala, and West Bengal.
The plea seeks multiple declarations:
- That NEP 2020 and PM SHRI Schools are not binding on Tamil Nadu unless implemented through formal agreement,
- That the Centre’s conditional linkage of SSS funds is unconstitutional, arbitrary, and illegal,
- And that the Centre must release its 60% statutory share before each academic year begins.
The Supreme Court has yet to list the matter for hearing.