SC Questions Freebies Culture, Issues Notice on TN Power Firm’s Plea

NEW DELHI: The Supreme Court on Thursday issued notice to the Centre and others on a plea filed by the Tamil Nadu Power Distribution Corporation Ltd challenging a provision of the Electricity Amendment Rules, 2024, even as it questioned the culture of offering “freebies”.

A three-judge Bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi observed that many states were running revenue deficits while announcing such measures.

“Most of the states in the country are revenue deficit states and yet they are offering such freebies,” the Bench said, adding that economic development could be affected by such largesse.

The court took note of the state utility’s proposal to provide free electricity to all consumers irrespective of financial status. It observed that extending support to those unable to pay was understandable, but questioned the absence of any distinction between categories of consumers.

“What kind of culture are we developing in India? It is understandable that as part of the welfare measure you want to provide to those who are incapable of paying the 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 CJI said.

The Bench also asked why the Tamil Nadu entity had decided to extend the benefit after notification of electricity tariffs.

“The states should work to open avenues for employment. If you start giving free food from morning to evening then free cycle, then free electricity then who will work and then what will happen to the work culture,” the CJI observed.

It further remarked that instead of focusing on development projects, states were largely spending on salaries and distribution of such benefits.