''Why Cash Transfer Schemes Just Before Elections?' Supreme Court Slams 'Freebies' Culture, Says Nation Building Hampered

The Supreme Court on Thursday made oral comments deprecating the trend of various State Governments announcing 'freebies' just ahead of elections.

The Court wondered how long this trend will go, and said that it would hamper the long term economic development of the country. The Court said that indiscriminately doling out State benefits to persons, without drawing any distinction between those who can afford and those who cannot, is nothing but appeasement, which is not conducive to the economic development of the country.

The Court said that he is aware of what happened in some states in the recent elections, where welfare schemes were suddenly announced just ahead of the elections. If direct cash transfer schemes are announced, will people work anymore, the Court asked.

A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul Pancholi was hearing a writ petition filed by the Tamil Nadu Power Distribution Company Ltd, challenging Rule 23 of the Electricity Amendment Rules 2024.

During the hearing, the CJI posed questions about the State absorbing the power bills.

Addressing Senior Advocate Gopal Subramanium, State's counsel, CJI Kant observed :

"Is it in the public interest that...the State is absorbing all these? Because of freebies, the entire country is already...we are not talking of Tamil Nadu in particular. We are talking of pan-India. What kind of culture are we developing? What is the the distiction between persons who are capable of paying the electricity bill and persons who are marginalised? It is understandable that, as a welfare state, you want to provide relief to the marginalised. But without drawing any distinction between those who can afford and those who cannot afford, if you start giving, will it not amount to a sort of appeasing policy?"

Saying that it was happening all over the Country, CJI Kant said, "We are sometimes really disturbed."

"Even if you are a revenue surplus state, is it not your obligation to spend that amount for the development of the overall public, to develop roads, hospitals, and schools. Instead of that, you keep on distributing food, clothes, and people enjoy everything at the time of elections. What is happening in this country?" CJI said.

CJI Kant said that it is understandable that the State wants to help those who are marginalised. But why should freebies be blanketly distributed to all and sundry, he asked.

"It is understandable when some people cannot afford, you have to provide. There are children who cannot afford education, then state must provide. It is the state's duty. There are children who are bright but cannot afford to go to medical colleges, State must help themn. But the persons who can enjoy, has all means available and are affluent and therefore any kind of freebie first comes to their pocket. Is it not high time for the states to revisit these policy frameworks?".

The CJI said that the fundamental principle is that a person should pay for availing the services. The CJI said that the Court was not directing any State entity to indulge in profiteering, but at least the costs should be recovered from those who can afford.

"We know what is happening in the nearest places where the last elections took place. Why suddenly schemes are announced near elections? It is hightime that all political stalwarts, leaders, parties, and all social engineers, they need to revisit everything. We will be hampering the development of the nation if we keep on having this largesse distribution. There has to be a balance. But how long this will continue?," CJI asked.

The CJI said that the States should focus on long-term development plans, than such election promises.

"Our worry is that the states are running in deficit and still giving all these kinds of distributing people money. From where that money is coming? Why shouldn't it be dedicated for development purposes? You can have a long term plan for roads, irrigation, electrical, whatever you want."

CJI also raised concerns about the direct cash transfer policies.

"You should create avenues for the employment of the people so that they can earn and maintain the dignity and self respect. If you start giving right from the morning free food, free gas, free electricity... You are directly transferring cash in the account. Why the people should work then? From where they are going to learn the work when they know everything I will get from one platform? Is it the nation-building we are doing?"

The CJI said that the Court is seized of other petitions on the freebies issue.

As regards the TN power company's petition, the Court agreed to examine the matter, and issued notice to the Union.

Case :TAMIL NADU POWER DISTRIBUTION CORPORATION LIMITED Vs UNION OF INDIA | W.P.(C) No. 158/2026