Supreme Court closes disability fund case after Rs 212 crore recovery from banks

The Supreme Court has recorded compliance with prior directions to recover bank dues into the fund for persons with disabilities, acknowledged cumulative recoveries of Rs 212.39 crore, and recognized that the erstwhile Trust Fund now operates as the statutory National Fund under the Rights of Persons with Disabilities Act.

The bench dissolved the oversight committee, relieved the Comptroller and Auditor General of chairing duties, and placed ongoing administration of the National Fund on the Central Government per Section 86 and Rule 42 of the RPwD Rules, 2017.

Considering a miscellaneous application filed in 2025, the court noted the fact that the mandate for which the committee was constituted has been fulfilled, the committee stands discharged of its obligations.

The court stated it was satisfied that the directions issued by this court through order dated October 14, 2014, have been duly complied with. Furthermore, as the statutory regime is in place, no further exercise of the monitoring fund is now considered necessary.

A writ petition filed seeking implementation of the judgment of April 16, 2004 passed in the Indian Banks' Association, Bombay and others vs Devkala Consultancy Service and others was disposed of by the apex court on August 11, 2017.

The court had then disposed of the petitions with the direction that the Committee constituted on October 14, 2014 comprising representatives of Reserve Bank of India, the Comptroller and Auditor General of India, Small Industries Development Bank of India, Union of India and the Indian Banks Association will oversee the implementation of the directions.

Taking up the application, the bench found the RBI, by a letter on June 25, 2025, has informed that the recovery process finalized by the Committee in its meeting on February 28, 2025 stands completed in compliance with the directions issued by this court by an order of October 14, 2014.

It has been reported that a sum of Rs 1.67 crore was recovered during the period April to May 2025, and that the cumulative recoveries now aggregated to Rs 212.39 crore.

The court was informed Parliament has since enacted the RPwD Act. The Trust Fund created pursuant to this court's order on April 16, 2004 has been merged into the National Fund for Persons with Disabilities, and Rules have been framed governing the investment and utilization of the Fund. The implementation of the statutory scheme is now an executive function under the Act, with the accounts of the National Fund being subject to audit by the CAG.

In view of the compliance of the directions issued in 2014, the CAG has sought to be relieved of the responsibility as Chairperson of the Committee constituted by this court.

The statutory framework governing the subject matter now stands crystallized with the incorporation of Section 86 of the RPwD Act and the rules framed thereunder. It shall hereafter be incumbent upon the Central Government to ensure that the National Fund is maintained and administered in letter and spirit in accordance with the mandate of the said provision.

Having considered the assertions made in the compliance affidavit and the statutory provisions, the court said it was satisfied that the directions issued by this court by the order of October 14, 2014, have been duly complied with.

Furthermore, as the statutory regime is in place, no further exercise of the monitoring fund is now considered necessary, the bench said, ordering closure of the application.

The judgment marks the successful conclusion of a long-running case involving recovery of bank dues to support persons with disabilities. The Rs 212.39 crore collected over the years will continue to be administered under the statutory National Fund framework established by the Rights of Persons with Disabilities Act, with the Central Government now responsible for its proper maintenance and utilization for the welfare of persons with disabilities across India.

Case details: Ravi Shankar Bhushan vs Union of India & Ors, decided by a bench of Justices Vikram Nath and Sandeep Mehta on January 12, 2026