Tamil Nadu Moves Supreme Court, Accuses Centre of Withholding Rs 2,291 Cr in Education Funds to Push NEP

New Delhi: In a significant escalation of Centre-State tensions, the Tamil Nadu government has approached the Supreme Court, accusing the Union government of illegally withholding ₹2,291.30 crore in education funds under the Samagra Shiksha Scheme (SSS). The State alleges that the Centre is using financial coercion to force implementation of the National Education Policy (NEP) 2020 and associated schemes like PM SHRI Schools.

The petition has been filed directly under Article 131 of the Constitution, which allows a state to challenge the Union government in matters involving legal or constitutional disputes. Tamil Nadu is seeking the immediate release of ₹2,151.59 crore—representing the Centre’s 60% share of the funds approved for the 2024–25 financial year—as well as interest at 6% per annum from May 1, 2025, until payment is made.

Tamil Nadu emphasized that the Project Approval Board (PAB) under the Ministry of Education had cleared its funding proposal on February 16, 2024, confirming full compliance with the scheme’s guidelines. However, the State government says not a single rupee has been released as of May 21, 2025.

The State also alleges that the Centre is illegally linking the release of funds to its acceptance of NEP 2020 and the PM SHRI Schools initiative, which it says violates constitutional principles and statutory responsibilities. “The Union government is misusing its control over public finance to arm-twist states into compliance with policies that are neither compulsory nor universally accepted,” the petition contends.

Tamil Nadu has been a vocal critic of the NEP, especially its three-language formula that includes Hindi—an issue that has deep political and cultural sensitivities in the state.

In support of its argument, Tamil Nadu cited a prior Supreme Court ruling where the Court refused to entertain a plea to compel the State to adopt the NEP. The Court held that under Article 32, it could not force a state government to implement policy decisions, as the provision is intended to protect fundamental rights, not enforce Centre-driven policies.

In its plea, Tamil Nadu has demanded that the Centre be directed to stop “coercively linking unrelated policies” to education fund disbursals and fulfill its obligations under the Right to Education (RTE) Act, 2009.