The Patna High Court issued a notice to Bihar Govt. regarding mismanagement and non-utilization of funds collected under the Health and Education cess since 2008. The court ordered a comprehensive affidavit on the collected and expended funds within four weeks. The PIL highlights underutilization, misallocation, and lack of transparency, seeking proper fund use and compliance with CAG recommendations.
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BIHAR: The Patna High Court issued a notice to the state over the alleged mismanagement and non-utilization of funds collected under the Health and Education cess, previously known as the Secondary and Higher Education Cess, since its inception in 2008. This action was prompted by a public interest litigation (PIL) filed by Advocate Shama Sinha, who personally sought the court’s intervention to address these concerns.
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Chief Justice K. Vinod Chandran responded to the plea by ordering,
“The respondent-State shall file a comprehensive affidavit as to the cess collected from the date of implementation in 2008 and the expenditure made from the aforesaid cess collected.”
The court has mandated that this affidavit be filed within four weeks, with the matter now scheduled for a hearing on March 15.
The PIL sheds light on the critical issues related to the management, allocation, and actual use of the cess funds, which have been accumulating for over a decade. It emphasizes that cess is specifically levied for a distinct purpose, in this instance, to bolster education and health initiatives. However, the petition underscores a troubling scenario where, despite significant collections, there has been a glaring shortfall in channeling these funds towards their designated goals. It states,
“However, despite substantial collections over the years, there have been serious deficiencies in channeling these funds for their intended objectives as the cess collected from tax payers has not been operationalized. The Madhyamik and Uchchtar Shiksha Kosh (MUSK), designed to utilize these funds for educational schemes, has not been operationalized till date as per CAG report.”
The petition draws upon various reports by the Comptroller and Auditor General (CAG) of India, parliamentary standing committees, and recent budget allocations to highlight the underutilization, misallocation, and delays in the deployment of these cess funds. It also points out the apparent lack of transparency, accountability, and adherence to CAG recommendations in the management of these funds.
In response to these alarming issues, the petitioner has requested the court to direct the respondents to ensure the immediate and proper use of the accumulated funds, to operationalize MUSK (Madhyamik and Uchchtar Shiksha Kosh) in accordance with statutory obligations, to establish a transparent mechanism for managing the funds, and to comply with the recommendations of the CAG. Moreover, the petitioner seeks the court’s intervention to uphold the principles of fiscal accountability, transparency, and good governance.
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The case, titled Shama Sinha vs. The Union of India, is represented by Ms. Shama Sinha for the petitioner, Mr. Tuhin Shankar for the Union of India, and Mr. Ansay Bahadur Mathur for the respondents. This case marks a pivotal moment in addressing the long-standing issues surrounding the allocation and utilization of cess funds in the state, with potential implications for the enhancement of health and education services.
Case Title: Shama Sinha vs. The Union of India
Case No.: Civil Writ Jurisdiction Case No.18426 of 2023
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