Institute of Legal and Management Studies

The State of Tamil Nadu filed an original suit in the Supreme Court against the Union Government, alleging that the Centre was withholding funds under the Samagra Shiksha Scheme(SSS) over the non-implementation of the National Education Policy 2020 & PM SHRI in the State.

In the suit filed under Article 131 of the Constitution, the State sought a direction to the Union Government to pay it a sum of over Rs 2291 crores, which is said to be due under the SSS, along with future interest.

The State also sought a declaration that the Union's action in linking the entitlement to receive funds under the SSS to the implementation of the National Education Policy 2020 and the PM Shri Schools within the State of Tamil Nadu is "unconstitutional, illegal, unreasonable and arbitrary."

The State said in its plaint that for the FY 2024-25, the Project Approval Board, in its meeting held on 16.02.2024, after being satisfied with the due compliance of all the components by it under the Samagra Shiksha Scheme, allocated a total of Rs. 3585.99 Cr as the total outlay for expenditure under the scheme. As under the 60:40 sharing basis, the Central share amounted to Rs. 2151,59,61,000/-(Rupees Two Thousand One Hundred and Fifty-One Crores Fifty-Nine Lakhs and Sixty-One Thousand only) and was due and payable to the Plaintiff State from 01.04.2024. However, the Union has failed to disburse any instalment or funds sanctioned by the Project Approval Board in its meeting held on 16.02.2024.

The reason for such non-disbursement is said to be that the Union has linked the release of Samagra Shiksha Scheme funds with the implementation of 'National Education Policy' and 'NEP exemplary PM SHRI Schools' Scheme.

The MoU pertaining to the PM SHRI Schools Scheme mandates implementation of the NEP-2020 in the State. The State said that it is opposed to the implementation of the NEP since it envisages three-language formula.

As per the PM Shri scheme, certain schools in a State are selected to showcase the implementation of the NEP and they will be presented as exemplary schools for NEP. Over 14,500 PM SHRI Schools are sought to be established nationwide and about 1100 shcools are identified in Tamil Nadu.

Through letters dated 23.02.2024 and 07.03.2024, the Union insisted the State to implementat NEP 2020 and sign the MOU for PM SHRI Schools scheme. The Tamil Nadu Education Department responded through letter dated 06.07.2024, requesting modifications to the MoU clauses concerning the implementation of all provisions of the NEP-2020 across the entire state.

The State argued that Samagra Shiksha Scheme, and the NEP & PM Shri scheme are entirely different and they cannot be linked. The State contended that the Union was using a "pressure tactic" by withholding its share to force the implementation of the other schemes.

"The action of the Defendant in linking the Samagra Shiksha Scheme with the PM SHRI Schools Scheme—despite the fact that these two centrally sponsored schemes have no interconnection, interrelationship, or convergence and operate in entirely different domains—is arbitrary and unjustified. The attempt to link these schemes under the pretext of implementing the NEP-2020 is legally questionable, fundamentally unacceptable, and violative of the State's autonomy, the federal structure of the Constitution, and the statutes enacted by the State," the State contended.

The financial support provided by the Union as per the Samagra Shiksha Scheme is a statutory mandate under the Right to Education Act, 2009, and it cannot be withheld on the ground of other schemes, which have no legislative backing.

"The Plaintiff State is well within its rights to refuse the implementation of the NEP-2020 or the PM SHRI Schools Scheme, as these are policies devoid of any statutory authority. The NEP-2020 is a policy and vision statement of the Defendant that lacks any executive or legislative force binding the Plaintiff State to its implementation. Furthermore, the NEP- 2020 does not mandate implementation as a condition for receiving financial assistance under the Samagra Shiksha Scheme."

Citing parliamentary responses to questions raised in the Rajya Sabha, the State has claimed that for the financial year 2024–25, the Centre has disbursed Samagra Shiksha funds to all States except Tamil Nadu, Kerala, and West Bengal.

The delay has disrupted salaries, teacher training, student entitlements such as textbooks and uniforms, and infrastructure grants across government schools and hostels.

Reliance was placed on the judgment in Union of India vs. Mohit Minerals Private Limited(2022), which highlighted that the States can resist the mandates of the Union by using different forms of political contestation as it was a facet of federalism.

The State's plaint was filed through Advocate Sabarish Subramanian and was settled by Senior Advocate P Wilson.

Recently, the Supreme Court had held that Courts cannot compel any State to adopt the NEP.

Case : State of Tamil Nadu v Union of India | Diary No. 28793/2025