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Tamil Nadu moves Supreme Court against Centre for withholding release of Rs 37,000 crore disaster relief funds

The Tamil Nadu government on Wednesday filed an original suit before the Supreme Court against the Centre, alleging that the Union was withholding the relief funds for natural calamities. The plea lodged under Article 131 of the Constitution, urges the court to direct the Centre to provide more than Rs 37,000 crore in aid for damages caused by recent floods and cyclone Maichung.

The state government sought financial assistance of Rs 19,692.69 crore for the damage caused by the cyclone that took place in December 2023 along with Rs 18,214.52 crore for the damage caused by the unprecedented extreme heavy rainfall in southern districts of Tamil Nadu in December 2023.

It also sought for an ex parte order for interim relief directing the Centre to release a sum of Rs 2000 crores to the state as an interim measure. In the plea, the state also requested that the interim release be based on the representations dated December 12, 2023 made by the Chief Minister and dated January 10, 2024 made by the Chief Secretary seeking interim assistance for carrying out relief operations and temporary restoration works.

The lawsuit mentioned that the Centre’s failure to act on the reports and decide on releasing financial aid to Tamil Nadu is clearly illegal, arbitrary, and violates citizens’ fundamental rights under Articles 14 and 21 of the Indian Constitution. It alleged that despite numerous appeals, the Union has not provided any funds to the state for relief and recovery from the twin disasters of Cyclone Michaung and the unprecedented rains and floods in southern districts, from the National Disaster Response Fund (NDRF).

The plea said that there has been an unreasonable delay by the Ministry of Home Affairs in convening a High-Level Committee meeting to approve the relief amount from the NDRF and release the funds to Tamil Nadu, disrupting the state’s development and causing mental distress and hardship to its affected citizens who are awaiting relief measures. The plaintiff noted that although a sub-committee meeting of the National Executive Committee was held on March 15, to discuss the reports of the Inter-Ministerial Central Teams, the High-Level Committee with key members such as the Home Minister, Agriculture Minister, Finance Minister, and Vice Chairman of NITI Aayog, has yet to convene and decide on the matter.

Furthermore, the lawsuit stated that the 15th Finance Commission, which has allocated National Disaster Response funds for the period 2021-2022 to 2025-2026, including additional financial assistance in the event of severe disasters. The plaintiff claimed that all necessary formalities have been completed according to the guidelines and the National Disaster Management Act 2005, so there is no valid reason to delay disbursing funds to Tamil Nadu.

The plaintiff also argued that Tamil Nadu is being unfairly treated by the Centre for not releasing the NDRF funds, despite assessments by experts, the Inter-Ministerial Central Teams, and the sub-committee of the National Executive Committee. The plea underlined that this aforesaid differential treatment amounts to class discrimination and violates the National Disaster Management Policy, financial relations, and the federal nature of tax division by favoring some states over others.

The suit is lodged  through D Kumanan, TN Standing Counsel and settled by P. Wilson Senior Advocate.

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