New Delhi: The Supreme Court of India on Thursday expressed strong concern over the growing culture of “freebies” offered by states, observing that such policies could hamper the country’s economic development.
A Bench comprising Chief Justice Surya Kant, and Justices Joymalya Bagchi and Vipul M. Pancholi made the remarks while hearing a plea filed by the Tamil Nadu Power Distribution Corporation Ltd. The state-run power distribution company has challenged certain provisions of the Electricity Amendment Rules, 2024, and proposed providing free electricity to all consumers, irrespective of their financial status.
Taking note of the proposal, the Bench said it was understandable for states to extend support to economically weaker sections, but questioned the rationale behind offering blanket benefits without distinguishing between those who can afford to pay and those who cannot.
“What kind of culture are we developing in India?” the Chief Justice remarked. “It is understandable as a welfare measure for those incapable of paying electricity charges. But without drawing a distinction between those who can afford and those who cannot, you start distributing. Will it not amount to an appeasing policy?”
The court observed that many states are already running revenue deficits, yet continue to announce such schemes, potentially at the cost of long-term development. It said that instead of focusing on largesse distribution, states should prioritise job creation and economic expansion.
“If you start giving free food from morning to evening, then free cycles, then free electricity, who will work? What will happen to the work culture?” the Chief Justice asked during the hearing.
The Bench further remarked that states often limit their spending to paying salaries and distributing benefits, rather than investing in infrastructure and development projects that generate employment.
However, the court issued notice to the Centre and other respondents on the plea filed by the DMK government-led power utility and sought their responses.
The matter will be taken up for further hearing after replies are filed.
