PM Shree

Why in News? The Kerala government announced its intention to pursue a legal course and ground protests to recover over Rs1,500 crore allegedly withheld by the Centre, linked to centrally sponsored schemes.

• The funds were reportedly withheld due to Kerala’s refusal to sign the PM SHRI scheme memorandum of understanding (MoU).

Relevance : UPSC Pre & Mains

Prelims :  PM Shree

Mains :  GS 1/2

Legal and Constitutional Actions Available to Kerala:

Legal Recourse in Courts:

• Supreme Court (Article 131):
• Kerala can invoke Article 131, which provides the Supreme Court jurisdiction over disputes between states and the Centre.

• • Argument: Withholding funds for centrally sponsored schemes due to non-signing of the MoU may violate federal principles and Kerala’s right to equitable resource distribution.

• High Court (Judicial Review):
• Kerala may approach the High Court to challenge the Centre’s action under the doctrine of arbitrariness, claiming unfair treatment.

Constitutional Remedies:

• Article 266 (Consolidated Funds):
• Kerala can argue that centrally sponsored schemes must be funded through the Consolidated Fund of India, and withholding funds breaches the scheme’s financial provisions.
• Directive Principles of State Policy (Part IV):
• Kerala could invoke Article 37, emphasizing that withholding education-related funds violates the spirit of promoting education, a directive principle.

 Political Measures and Protests:

Engaging the Finance Commission:

• Kerala could petition the 15th Finance Commission, arguing for a review of fund allocations for centrally sponsored schemes.

Inter-State Council (Article 263):

• Kerala can request the formation of a council to mediate disputes related to fund allocation and MoU conditions.

Parliamentary Oversight:

• The state may collaborate with opposition parties to raise the issue in Parliament, focusing on the alleged misuse of discretionary powers.

Challenges to Kerala’s Position:

Federal Structure: Centrally sponsored schemes inherently involve collaboration between states and the Centre, including compliance with certain conditions.

NEP Alignment: Refusing to align with the NEP might weaken Kerala’s position as the scheme is tied to national policy priorities.

Precedents: Courts have historically been reluctant to interfere in policy matters unless there is clear evidence of arbitrariness or discrimination.