The Kerala government has decided to approach the Supreme Court against the Centre’s decision to withhold the release of Rs 1,500 crore to the state under various centrally sponsored education schemes, according to Kerala’s Education Minister V Sivankutty. He has alleged that the funds have been withheld as Kerala has stayed away from adopting the Centre’s flagship

PM Schools for Rising India (PM SHRI) scheme.

What is the PM SHRI scheme?

PM SHRI is a scheme under the Union Ministry of School Education and Literacy. It aims to upgrade more than 14,500 existing schools across the country, and transform them into model institutions that embody the spirit of the National Education Policy (NEP) 2020.

The scheme “is to be implemented as a Centrally Sponsored Scheme with a total project cost of Rs 27360 crore which includes a central share of Rs 18128 crore for the period of five years from year 2022-23 to 2026-27,” according to a September 2022 press release by the Centre. States will bear 40% of the project expenditure, like any other Centre scheme.

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So far, 12,400 schools from primary level to higher secondary, in 670 districts across the country, have become part of the scheme.

However, schools under state boards in Kerala, Tamil Nadu and West Bengal have not been part of the scheme. That’s because these states have refused to sign a memorandum of understanding (MoU) with the Union School Education Ministry to implement the PM SHRI scheme.

Why has Kerala not signed the MoU?

CPI(M)-le Kerala government has opposed the PM SHRI scheme mainly because it is part of the NEP 2020. The government sees NEP as a tool for the saffronisation of education in the country. Moreover, it also argues that the PM SHRI scheme will bring the state schools under the control of the Centre.

Also in Explained | India’s National Education Policy, 2020

The Kerala government has said that it has already implemented many elements of the PM SHRI scheme. For instance, on the infrastructure front, Kerala schools, both government and aided ones, have made major progress over the last nine years. The state already has 40,000 smart classrooms in numerous schools, which have a broadband connection.

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Why does Kerala want to take legal action?

The Kerala government has said the Centre has withheld release of Rs 1,500 crore aid to the state education sector since 2023-24, primarily under the Samagra Shiksha Abhiyan scheme (SSA) — an Indian government scheme designed to ensure universal elementary education (UEE) for children aged 6 to 14.

Sivankutty has claimed that the lack of funds will severely hit several schemes being implemented in the schools, and impact students of Kerala.

The Tamil Nadu government approached the Supreme Court, accusing the Central government of illegally withholding over Rs 2,291 crore in education funds. The state accused the Centre of using financial pressure to get the State’s to implement the National Education Policy (NEP) 2020 and related schemes such as PM SHRI Schools.

Tamil Nadu government filed a case directly in the Supreme Court under Article 131 of the Indian Constitution against the Central government for withholding education funds meant for the state.

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Under Article 131, a state government is allowed to legally challenge the Central government in disputes involving legal or constitutional rights.

The State is seeking the immediate release of Rs 2,291.30 crore in funds under the Samagra Shiksha Scheme (SSS), which supports school education, particularly for underprivileged children.

This includes Rs 2,151.59 crore, which is the Centre’s 60% share of the sanctioned funds for FY 2024–25 and the interest at 6% per annum from May 1, 2025, until payment is made.

The Samagra Shiksha Scheme is a central government programme aimed at supporting inclusive and equitable quality education. Tamil Nadu says the Project Approval Board (PAB) had cleared the State’s proposal on February 16, 2024, acknowledging full compliance with scheme guidelines. But despite this, the Centre “has not released a single rupee” as of May 21, 2025, the state said in its petition.

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Tamil Nadu alleged that the Centre was illegally using funds as leverage to pressure the state into accepting the NEP 2020, and the PM SHRI Schools Scheme, which is designed to showcase NEP implementation through model schools.

Tamil Nadu strongly opposes NEP, particularly its three-language formula, which includes Hindi — a politically sensitive issue in the Tamil-speaking state.

Tamil Nadu’s case is strengthened by a previous Supreme Court ruling where it rejected a request to force Tamil Nadu to adopt the NEP 2020, including its three-language formula. The Court stated it can’t order a state to implement a policy under Article 32 of the Constitution because that article is for protecting fundamental rights, not for compelling state policy decisions.

Tamil Nadu now sought an order to the Centre to stop linking unrelated policies to the release of education funds and to fulfil its statutory duties under the Right to Education Act (RTE), 2009.

WHY TAMIL NADU IS OBJECTING

According to the Tamil Nadu government, it formally asked the Centre on July 6, 2024, to revise clauses in the PM SHRI memorandum of understanding (MoU) that require implementation of NEP provisions across the State. No resolution followed.

The State government argued that NEP and PM SHRI were policy documents, not laws. Hence, they were not binding on any state. It also stated Withholding funds for not implementing these policies is unconstitutional, arbitrary, and violates federalism.

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The state also said that the Centre’s actions breached its obligations under the Right to Education Act, 2009, which mandates the Union to cover 60% of education-related expenditures under schemes like Samagra Shiksha.

Tamil Nadu has also asked the Court to strike down Central government’s letters in 2024, dated February 23 and March 7, which allegedly tie fund release to NEP and PM SHRI compliance, calling them null and void.