Samagra Shiksha Funds Not Released As Tamil Nadu Didn't Sign MoU To Implement National Education Policy: Centre Tells Madras High Court

The Central Government on Friday informed the Madras High Court that the funds under the Samagra Shiksha Abhiyan have not been released for the State of Tamil Nadu as the State has not signed a Memorandum of Understanding for implementing the National Education Policy.

Notably, the Tamil Nadu government has moved an original suit in the Supreme Court against the Union Government, alleging that the Centre was withholding funds under the Samagra Shiksha Scheme(SSS) over the non-implementation of the National Education Policy 2020 & PM SHRI in the State.

The submission was made by Additional Solicitor General ARL Sundaresan before a vacation bench of Justice GR Swaminathan and Justice V Lakshminarayanan. The ASG was replying to a query raised by the court on why the Centre was withholding funds for Tamil Nadu while the funds for other states were being released promptly. Sundaresan informed the court that since the State had not signed the MoU, the Centre had not released its share of 60% under the Scheme. He also added that the State had also not paid its own share of 40%.

To this, Additional Advocate General J Ravindran commented that the Centre was taking a "big brother" attitude towards the State saying that it would not release the funds unless the State signs the MoU.

The bench was hearing a petition seeking directions to the State to initiate the admission process under Right to Education Act, 2009 for the academic year 2025-2026 immediately. When the matter was taken up previously, Ravindran had contended that the Centre had not been releasing funds since 2021 due to political animosity. The bench expressed dismay over the same and sought the Centre's response. After taking note of the submissions made by the Centre today, the court reserved its orders on the petition.

It may also be noted that the State has filed an original suit in the Supreme Court against the Union Government, alleging that the Centre was withholding funds under the Samagra Shiksha Scheme(SSS) over the non-implementation of the National Education Policy 2020 & PM SHRI in the State. the State sought a direction to the Union Government to pay it a sum of over Rs 2291 crores, which is said to be due under the SSS, along with future interest. The State has also sought a declaration that the Union's action in linking the entitlement to receive funds under the SSS to the implementation of the National Education Policy 2020 and the PM Shri Schools within the State of Tamil Nadu is "unconstitutional, illegal, unreasonable and arbitrary."

Case Title: V Easwaran v. Government of Tamil Nadu

Case No: WP 18427 of 2025