Supreme Court On Freebies: Hampering India's Development, States Running Into Deficit

The Supreme Court today expressed its concerns over distribution of "freebies" by political parties across states, highlighting the strain such measures place on public finances.

"The economic development of the nation will be hampered by this kind of largesse distribution. Yes, it is the State’s duty to provide. But who are enjoying these freebies.. is it not something that should be looked at?” Chief Justice of India Surya Kant observed.

CJI further said that states are running into deficit due to it.

As the bench was hearing a plea filed by Tamil Nadu Power Distribution Corporation, Justice Joymalya Bagchi said, "It is planned expenditure. Why don’t you make Budget proposals and give justification that this is my outlay on unemployment of people?”

“We are sometimes really disturbed… Even if you are a revenue surplus state, is it not your obligation to spend that amount for the development of the public… to develop roads, hospitals, schools. Instead of that, you keep on distributing food, clothes, and people enjoy at the time of elections. What is happening in this country?” a visibly upset CJI said.

Court has issued notice to Union of India in the plea challenging Rule 23 of the Electricity Amendment Rules 2024 which provides that the tariff will be cost reflective and there will not be any revenue gap between approved annual revenue requirement and estimated annual revenue from approved tariff except under natural calamity condition.

“We know states where there is free electricity even if you are a big landlord... You keep lights, machines on… If you want to have a facility you pay for it. But this money which the state says it will pay now... Who will pay for it? This is tax money,” the CJI added.

Court today said that most of the states in the country are revenue deficit states and yet they are offering such freebies overlooking development. Senior counsel Gopal Subramanium was before court representing the State of Tamil Nadu. "You should create avenues for employment of people so that they can earn and maintain dignity and self-respect. If you start giving right from the morning free food, free gas, free electricity... You are directly transferring cash in the account. Why should the people work then? From where are they going to learn the work when they know everything they will get it from one platform? Is it the nation building we are doing?” the bench further questioned.

Earlier this month, the Supreme Court had agreed to list in March a public interest litigation (PIL) seeking directions to seize the election symbol or deregister political parties that promise or distribute “irrational freebies” ahead of elections.

Court took note of submissions made by lawyer-petitioner Ashwini Kumar Upadhyay, who pointed out that notices in the matter had been issued to the Union government and the Election Commission of India as far back as 2022.

Recently, in 2024, the court had issued fresh notices to ECI and Centre, in a plea seeking a declaration that the promise of freebies, particularly in the form of cash, made by political parties during the run-up to Assembly or General elections, to be funded from the public exchequer post-election if their party forms the government, constitutes a corrupt practice under the Representation of the People Act, 1951.

Raising concern over the scale of pre-poll promises, Upadhyaya submitted that political parties were offering an ever-expanding range of freebies to voters to influence electoral outcomes. “Except the sun and moon, everything is being promised by political parties to voters during elections, and this amounts to a corrupt practice,” he told the court. Responding to the submission, the CJI acknowledged the importance of the issue. “This is an important issue. You please remind us and mention it at the end. We will list it in March,” the Chief Justice said.

The PIL, originally taken up in January 2022 by a Bench headed by then CJI N V Ramana, had been described as raising a “serious issue”. At the time, the court had observed that in some cases the “freebie budget” appeared to be exceeding the regular budget, and sought responses from the Centre and the Election Commission.

In 2022, Solicitor General Tushar Mehta had argued before the apex court that freebies distort the informed decision making of voters. SG had further said that the offering of freebies by political parties may also lead to an economic disaster. The SG had insisted that the ECI should examine the issue of freebies being offered by political parties before elections.

The petition seeks a declaration that promises of “irrational freebies” from public funds before elections unduly influence voters, disturb the level playing field, and vitiate the purity of the electoral process. It contends that such practices amount to bribing the electorate at the cost of the public exchequer, thereby striking at the core of democratic values.

Filed through AoR Ashwani Kumar Dubey, the plea argues that the growing trend of offering freebies to secure votes poses one of the greatest threats to constitutional democracy. It claims that distributing private goods or services, which are not meant for public purposes, from public funds violates constitutional provisions including Articles 14, 162, 266(3), and 282.

Case Title: TAMIL NADU POWER DISTRIBUTION CORPORATION LIMITED Vs UNION OF INDIA

Bench: CJI Kant, Justice Bagchi and Justice Pancholi

Hearing Date: February 19, 2026