Tamil Nadu has filed the case directly in the Supreme Court under Article 131 of the Constitution. This special Article allows state governments to file cases against the Central government when there are disputes involving legal or constitutional rights.
NEW DELHI: The Tamil Nadu government has taken the Central government to the Supreme Court, accusing it of illegally holding back education funds worth Rs.2,291.30 crore.
The State claims that the Centre is using financial pressure to force Tamil Nadu to implement the National Education Policy (NEP) 2020 and related schemes like PM SHRI Schools — policies that the State has strongly opposed.
Tamil Nadu has filed the case directly in the Supreme Court under Article 131 of the Constitution. This special Article allows state governments to file cases against the Central government when there are disputes involving legal or constitutional rights.
The petition demands the immediate release of Rs. 2,291.30 crore under the Samagra Shiksha Scheme (SSS) — a national programme designed to support school education, especially for children from disadvantaged backgrounds.
Out of this, Rs. 2,151.59 crore is the Centre’s 60% share of the total approved amount for the financial year 2024–25. Tamil Nadu also seeks interest at 6% per annum from May 1, 2025, until payment is made.
In its legal filing, Tamil Nadu alleged that the Centre is using funds as a tool to pressure the State into accepting NEP 2020 and the PM SHRI Schools Scheme, which are meant to showcase the implementation of NEP across the country through “model schools“.
“The Centre has not released a single rupee” as of May 21, 2025, even though the Project Approval Board (PAB) approved Tamil Nadu’s proposal on February 16, 2024, confirming full compliance with scheme rules.
“The Centre is illegally using funds as leverage to pressure the state into accepting the NEP 2020, and the PM SHRI Schools Scheme, which is designed to showcase NEP implementation through model schools.”
Tamil Nadu is particularly opposed to NEP’s three-language formula, which includes Hindi. This policy is a politically sensitive issue in the Tamil-speaking state, where there is strong resistance to the imposition of Hindi.
Tamil Nadu’s case also refers to a previous Supreme Court judgment, where the Court refused to force the State to implement NEP 2020. In that case, the Court ruled that it cannot use Article 32 to make a state follow a policy because this Article is meant to protect fundamental rights, not to impose policy decisions on states.
Tamil Nadu is now requesting the Supreme Court to stop the Centre from linking education funds to unrelated policies like NEP and PM SHRI. It argues that the Central government has a legal duty under the Right to Education Act (RTE), 2009, to fund 60% of education schemes like Samagra Shiksha.
“Withholding funds for not implementing these policies is unconstitutional, arbitrary, and violates federalism.”
“The Centre’s actions breached its obligations under the Right to Education Act, 2009, which mandates the Union to cover 60% of education-related expenditures under schemes like Samagra Shiksha.”
Tamil Nadu also highlighted that on July 6, 2024, it formally asked the Centre to change the PM SHRI memorandum of understanding (MoU), especially the clauses that require the State to follow NEP. But no agreement was reached.
“NEP and PM SHRI were policy documents, not laws. Hence, they were not binding on any state.”
“The Centre’s letters in 2024, dated February 23 and March 7,” which linked the release of funds to NEP and PM SHRI, should be declared “null and void.”
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