Freebies at expense of taxpayer funds may lead to 'bankruptcy' for state: SC

On Friday, the Supreme Court ruled that freebie politics is carried out at the expense of taxpayer money and could lead to the state's "imminent bankruptcy." Additionally, it mandated the creation of a three-judge panel to consider all appeals against the practise of political parties making handout promises prior to elections.

The supreme court noted that the matter necessitates an "extensive" hearing when addressing the fine line between freebies and social programs. Freebies cannot be equated with welfare programmes designed to meet the public's basic wants and requirements. Additionally, it made reference to the Directive Principles of State Policy, which discuss the obligation of the government to guarantee citizens' access to necessities.

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

The use of gifts by political parties to win elections has been the subject of heated discussion over the past several weeks. The court's judgement has clarified the next step in the legal process in this case.

The Supreme Court also stated in its ruling that the electorate holds the real power in democracies. People decide which party or candidate will prevail in the election and who should be re-elected once the current period has ended.

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"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.

Prior to passing any specific decisions, the top court stated that the problems brought up by the parties require a "extended hearing." The court outlined the preliminary issues in these petitions that could necessitate consideration and debate.

The questions included the extent of judicial action with regard to the reliefs requested in these pleas, whether this court can issue any enforceable orders in these writ petitions, and if appointing a panel or expert body would be beneficial.

After it was stated that the 2013 ruling by a two-judge bench of the supreme court in the case of S Subramaniam Balaji vs. The Government of Tamil Nadu and others called for reconsideration, the court took the matter under consideration.

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"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 ruling affirmed the practise of making promises in an election platform. The ruling states that the electoral manifesto's pledges cannot be taken to violate section 123 of the Representation of People Act (RPA), which deems such behaviour to be corrupt. The plea will be published after four weeks, the supreme court announced on Friday.

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After considering several petitions, including one submitted by lawyer Ashwini Kumar Upadhyay disputing freebies promised by the parties during elections, the bench led by Chief Justice NV Ramana issued the court orders. These petitions demanded that the Election Commission revoke these parties' registration and put their election emblems on hold.

The Supreme Court determined that all political parties supported freebies during the hearing on the same matter held on August 23. As a result, a legal effort has been made to address the issue.

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(With inputs from PTI)