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Freebies will hurt states in the long run, warns Supreme Court

19/02/2026BlogNo Comments

In oral observations, the Supreme Court on Thursday said sops announced just before elections or freebies will end up affecting the country’s progress in the long run.

The bench, led by Chief Justice of India Justice Surya Kant and comprising Justice Joymalya Bagchi and Justice Vipul Pancholi, likened it to appeasement, since it doesn’t differentiate between those who can pay for it and those who can’t.

The CJI asked if direct sops were being credited to peoples’ accounts ahead of elections, would they even continue to work. He said he was aware of several political parties going in for this kind of populist measure.

While hearing a petition filed by the Tamil Nadu Power Distribution Company Limited challenging a provision of the Electricity Amendment Rules 2024, the CJI told Senior Advocate Gopal Subramanium that while the welfare state is bound to help and empower the marginalised, how can it justify such largesse to everyone? The court said it will hear the case and issued notice to Centre.

The Court said the money should be spent on overall development projects instead of being utilised for narrow political gains. States will then become revenue deficit, the CJI said.

He said people who can afford it should pay for the services they get. The cost of such schemes should at least be recovered from those who can afford them instead of a blanket sop.

Though the petition didn’t delve into free units, several political parties have contested and won elections with manifestoes promising free power with a ceiling. Almost a week ago, Tamil Nadu Chief Minister MK Stalin announced a one-time grant of Rs 5,000 to 1.31 crore women in the state, which is due to go to the polls this summer.

The post Freebies will hurt states in the long run, warns Supreme Court appeared first on India Legal.

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