Tamil Nadu Moves Supreme Court Against Centre Over Withheld ₹2,291 Crore Ed.

21 May, 2025

The Tamil Nadu government has filed a lawsuit in the Supreme Court seeking the release of ₹2,291 crore in education funds under the Samagra Shiksha Scheme, alleging that the Centre is withholding these funds to coerce the state into adopting the National Education Policy (NEP) 2020 and the PM SHRI Schools scheme. 

The state contends that the Centre's actions violate the principles of cooperative federalism and infringe upon constitutional rights by tying essential funding to policy compliance. Tamil Nadu emphasizes that the withheld funds are crucial for the education of nearly 44 lakh students and the employment of over 2.2 lakh teachers and 32,000 staff members. 

The Centre has withheld funds from Tamil Nadu, Kerala, and West Bengal for not signing the Memorandum of Understanding (MoU) to implement the PM SHRI scheme, which aligns with NEP 2020. A parliamentary panel has criticized this move as unjustifiable and recommended the immediate release of the pending funds to prevent disruptions in education services. In response to the fund withholding, the Tamil Nadu government has increased its education budget by ₹2,725 crore to compensate for the shortfall and ensure the continuation of educational programs. 

The Supreme Court is now tasked with addressing this dispute, which has significant implications for federal relations and the administration of education policy in India.