Karnataka High Court Queries State On Outstanding Beggary Cess, Says Children Begging On Streets Tells 'Something Is Not Right'

The Karnataka High Court on Monday (October 27) directed the State Government to inform the steps it has taken to recover the outstanding Beggary cess amount, collected by local bodies.

A division bench of Chief Justice Vibhu Bakhru and Justice C M Poonacha in its order recorded that the affidavit filed by the the Director of Directorate of Municipal Administration indicates that during last four years 2021-22 to 2024-25, a total amount of Rs 7093.50 crore has been collected as beggary cess.

Out of this, Rs 3453.86 crore has been spent and the remaining 3639.64 crore remains.

Senior Advocate Puttige Ramesh appearing for petitioner Puthige R Ramesh alleged that crores of rupees had been siphoned off. The government advocate replied saying, “Local bodies have to pay the amount. We have been sending reminders.”

Further it was informed that the amount is transferred to the Child Welfare Department.

The bench orally said, “You cannot take away from the children. Obviously you are keeping 3,000 crore for four years and children are begging on the streets then something is not right.”

Referring to the affidavit of the Municipal Administration the court in its order noted:

“The affidavit does not provide details of the precise deployment of the amount of 3453.86 crore. It is also apparent from the affidavit 3639.64 crore which has been collected remains to be deposited in the earmarked account and channelised. It is contended that the local bodies which have collected the amount have so far not remitted the same.”

It added “Accordingly, a circular dated 29-03-2021 has been issued directing Urban local bodies (ULB) to deposit beggary cess collected in a separate escrow account. It does not appear that the said circular is being followed, as there is no statement that the amount of 3639.64 crore is deposited in the escrow account. The concerned officials of the local bodies are now required to remit that amount in the escrow account for proper channelising the same.”

Following which it said:

“We consider directing the Karnataka State Legal Services Authority (KSLSA) to coordinate with the State government for collecting and verifying the requisite data. The State government is also directed to fully cooperate with KSLSA and provide all data as may be required. The state government should also indicate the steps taken to recover the outstanding amount. The Ld counsel shall also suggest that in the event the amounts are not collected within a reasonable period, it may be necessary for this court to issue orders including the order for attaching the account”. 

Observing that “Prima facie it cannot be accepted the amount collected for beggary cess be misutilised" the court directed, “The State government and KSLSA shall furnish a report within a period of 8 weeks from today. We also grant liberty to KSLSA to apply for further orders”.

The direction was given during the hearing of a petition filed while hearing a petition filed by Letzkit Foundation. 

Case Title: LETZKIT FOUNDATION AND State of Karnataka & Others

Case No: WP 10096/2020