Chennai: In a significant ruling, the Madras High Court on Tuesday directed the Union Ministry of Education to consider releasing funds under the Right to Education (RTE) Act separately from the broader Samagra Shiksha Scheme (SSS), ensuring that private schools in Tamil Nadu receive pending reimbursements. The court also emphasized that the state government cannot evade its financial obligations under the RTE Act, even if the Centre withholds funds due to the ongoing dispute over the National Education Policy (NEP) 2020.
The legal battle stems from Tamil Nadu’s refusal to implement the NEP 2020, a flagship education reform policy of the Central government. In response, the Centre has withheld ₹2,151.59 crore under the Samagra Shiksha Scheme, which includes an RTE component of around ₹200 crore meant for reimbursing private schools that admit economically disadvantaged students.
Private schools in Tamil Nadu have been struggling due to delayed payments, while the state government has argued that it cannot bear the full financial burden without Central assistance. This led to a Public Interest Litigation (PIL) seeking judicial intervention to ensure RTE admissions for the 2025-26 academic year proceed without further delays.
A Division Bench comprising Justices G.R. Swaminathan and V. Lakshminarayanan noted that while the Centre has valid concerns regarding Tamil Nadu’s rejection of NEP 2020, the RTE Act imposes “concurrent obligations” on both governments.
The court highlighted Section 7 of the RTE Act, which mandates that the Central and State governments share financial responsibility for implementing the law. The judges stated that “funds payable under RTE need not be linked to NEP 2020” and urged the Centre to consider releasing the ₹200 crore RTE component separately.
The Bench firmly rejected Tamil Nadu’s argument that non-receipt of Central funds absolves it of its duty to reimburse private schools. “The State cannot wriggle out of its statutory obligation,” the court observed, citing previous judicial precedents.
However, since Tamil Nadu has already filed a suit in the Supreme Court seeking the release of the full ₹2,151.59 crore under SSS, the High Court refrained from issuing a binding order. Instead, it directed the Centre to “consider delinking RTE funds” from the larger dispute.
Additional Advocate General J. Ravindran, representing Tamil Nadu, informed the court that the state had fully borne the ₹188.99 crore RTE reimbursement cost for 2022-23 without Central support. He argued that continuing to do so indefinitely was unsustainable.
On the other hand, Additional Solicitor General A.R.L. Sundaresan, appearing for the Centre, maintained that the Samagra Shiksha Scheme is aligned with NEP 2020, and since Tamil Nadu has rejected the policy, fund disbursement remains contentious. He also stressed that primary responsibility for RTE implementation lies with the state.
The court referenced former U.S. Chief Justice Earl Warren’s famous quote:
“Today, education is perhaps the most important function of the state… It is doubtful any child may reasonably be expected to succeed in life if he is denied the opportunity of education.”
This underscored the non-negotiable nature of RTE obligations, regardless of political or policy disagreements. The ruling could set a precedent for other states facing similar standoffs with the Centre over NEP 2020.
Private school associations welcomed the court’s directive, expressing relief that delayed RTE reimbursements may finally be addressed, while education activists urged both governments to prioritize students’ rights over political disputes. The Tamil Nadu government reiterated its stance that it cannot indefinitely bear the financial burden alone and will continue pursuing its case in the Supreme Court for the release of full Samagra Shiksha funds. Meanwhile, opposition parties criticized the Centre for allegedly using education funds as leverage to enforce NEP compliance, calling it detrimental to marginalized students. Parents’ groups appealed for swift resolution, emphasizing that prolonged uncertainty disrupts children’s access to quality education.
