The directive arises from a public interest litigation by activist V Easwaran of Marumalarchi Iyakkam, who pointed out that admissions under RTE in private schools have been stalled due to pending reimbursements. Tamil Nadu authorities revealed they have been covering private school dues from state funds since 2021, given that the Centre has withheld its ₹2,151 crore share under the Samagra Shiksha scheme.
The Union Government justified the freeze on funding by asserting that Tamil Nadu had not adopted the NEP 2020, a policy overhaul that mandates a three-language formula including Hindi, which the state opposes. However, the bench ruled that Section 7 of the RTE Act mandates concurrent responsibility for funding between Centre and states, and central grants—classified under Section 7—are due “notwithstanding any other conditions”.
The court declined to issue binding orders to the Centre due to Tamil Nadu’s parallel legal challenge in the Supreme Court, but urged that the ₹200 crore RTE component be treated separately and released immediately. At the same time, it directed the state government to proceed with reimbursements to private schools as required by Section 12 of the RTE statute and the Tamil Nadu RTE Rules, warning that fund delays cannot justify statutory inaction.
Tamil Nadu’s opposition to the NEP is rooted in long-standing resistance to the three-language policy, which many in the state see as a step towards Hindi imposition. Education Minister Anbil Mahesh Poyyamozhi has warned that Tamil Nadu’s established two-language system already meets educational benchmarks, and that NEP’s additions could disrupt the state’s success.
The court’s directive underscores an emerging legal trend affirming Tamil Nadu’s autonomy in policy disputes—from language instruction to broader governance. It reinforces constitutional federalism by drawing a clear line between central funding obligations and state policy adoption.
While the dispute advances to the Supreme Court, public interest advocates maintain hope that the High Court’s appeal will prompt the Centre to expedite the release of RTE funds. Tamil Nadu officials affirm that without central aid, the state has limited capacity to reimburse private schools for students admitted under RTE provisions.
The financial standoff now hinges on Supreme Court deliberations. The High Court’s appeal adds weight to the argument that central funding responsibilities under legislation such as RTE are non-negotiable and insulated from political or policy disputes.