Freebies at cost of taxpayers' money may lead to bankruptcy, says Supreme Court

SC directs listing of pleas raising issue of practice of political parties promising freebies before three-judge bench. (HT)Premium
SC directs listing of pleas raising issue of practice of political parties promising freebies before three-judge bench. (HT)
3 min read . Updated: 26 Aug 2022, 10:53 PM IST Livemint

Supreme Court on Friday said that freebies at cost of taxpayers' money may push the state towards 'imminent bankruptcy'. It also ordered the listing of pleas raising the issue of the practice of political parties promising freebies before a three-judge bench

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The Supreme Court on Friday said that freebie politics is used at the cost of taxpayers' money and may push the state towards “imminent bankruptcy". Moreover, it ordered the formation of a three-judge bench to hear all the pleas against the practice of political parties promising pre-elections handouts.

Addressing the thin line between freebies and welfare schemes, the apex court observed that the issue requires an 'extensive' hearing. Welfare schemes made to fulfil the basic needs and requirements of the public can not be equated with freebies. It also mentioned Directive Principles of State Policy, which talks about the responsibility of the state to provide access to basic facilities to the people.

"Freebies may create a situation wherein the State Government cannot provide basic amenities due to lack of funds and the State is pushed towards imminent bankruptcy. In the same breath, we should remember that such freebies are extended utilising taxpayers' money only for increasing the popularity of the party and electoral prospects," a bench headed by Chief Justice N V Ramana said.

For the last few weeks, there has been a constant debate about the use of freebies by political parties to win the elections. The court order has provided clarity on the further judicial proceeding in the matter. The order was taken on the last day in the office of CJI Justice NV Ramana

In its order, the Supreme Court also said that in a democracy, true power lies with the electorate. It is the people that decide which party or candidate wins the election, and which party or candidate should be re-elected after the completion of tenure.

"This court has generally stayed its hand when confronted with issues relating to a policy or fiscal matters concerning the State, as the same falls outside the ambit of the Court's jurisdiction," the bench, also comprising Justices Hima Kohli and CT Ravikumar, said.

The top court said the issues raised by the parties require an "extensive hearing" before any concrete orders can be passed. The court explained that these petitions contain certain preliminary issues that may require deliberations and discussions. The issues included the scope of judicial intervention concerning the reliefs sought in these pleas, whether any enforceable order can be passed by this court in these writ petitions and whether the appointment of a commission/expert body by the court would serve any purpose.

The matter was taken into cognisance by the court after it was argued that the 2013 judgement delivered by a two-judge bench of the apex court in the matter of S Subramaniam Balaji vs The Government of Tamil Nadu and others required reconsideration.

"Looking into the complexities of the issues involved and the prayer to overrule the judgement rendered by a two-judge bench of this court in Subramaniam Balaji, we direct listing of the set of petitions before a three-judge bench after obtaining the orders from the Chief Justice of India," it said.

The 2013 judgement upheld the practice of promising in the election manifesto. According to the judgement, the promises in the election manifesto cannot be read into section 123 of the Representation of People Act(RPA) for declaring it to be a corrupt practice. The apex court on Friday said that the plea would be listed after four weeks.

The court orders came after the bench led by CJI NV Ramana deliberated upon pleas, including the one filed by advocate Ashwini Kumar Upadhyay opposing promises of freebies by the parties during polls. These petitions demanded the Election Commission freeze the election symbols of these parties and cancel their registration.

During the hearing held on the same issue on 23 August, the Supreme Court found that all the political parties were in support of freebies, that's why a judicial attempt has been made to deal with it.

"On this issue, I can say all political parties are on one side including BJP. Everybody wants freebies. That is the reason we attempted," the bench had observed.

(With inputs from PTI)

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