HC admonishes Punjab for evading liability in SC scholarship scheme

The Punjab and Haryana High Court has admonished the Punjab Government for “trying to evade its responsibility” in disbursing scholarships under the Post Matric Scholarship Scheme for Scheduled Castes students

The court also directed the Director, Department of Welfare, Social Justice, Empowerment and Minorities, Punjab, to remain present in person on the next date, while the Principal Secretary of the department has been ordered to join via video conferencing.

The Bench observed that the State was taking “contrary stands” and prima facie pleading a “not true plea” only to avoid liability.

The scheme is a cost-sharing arrangement between the Centre and the State in the ratio of 60:40. However, Punjab has been accused of withholding even the funds already received from the Union of India, leaving institutions without reimbursement for the expenditure incurred on educating Scheduled Castes students.

Justice Vikas Bahl observed that Punjab itself had admitted no budgetary provision was made for the years 2017-18, 2018-19 and 2019-20, while its liability in at least two of those years was “less than the committed liability.” Yet, the State was consistently shifting the blame on the Union of India by claiming that 60 per cent of the funds had not been received.

The Bench observed: “Not paying the entire amount to the petitioners and repeatedly stating that the amount has not been received from the Union of India to the extent of 60 per cent prima facie seems to be not a true plea, which had been pleaded only to avoid liability and to not comply with the directions issued by the co-ordinate Bench of this court.”

Appearing for the Union of India, Additional Solicitor-General of India Satya Pal Jain pointed out the funds released by the Centre, while counsel for the petitioner-educational institute submitted that institutions had not been reimbursed despite clear directions of the High Court.

The matter stems from petitions filed by institutions through counsel Sameer Sachdeva and Lishika Mehta seeking reimbursement of expenditure incurred on imparting education to Scheduled Castes students, which has remained stuck due to the dispute between Punjab and the Union government.

Justice Bahl observed that a co-ordinate Bench had, on January 9 this year, issued categorical directions to the Chief Secretary of Punjab and the Union Secretary, Department of Social Justice and Empowerment, to hold a joint meeting and resolve the payment dispute within one month, with a further eight weeks granted for resolution. It was made clear then that any failure would amount to violation of court orders, and that the entitlement of institutions and universities under the scheme had to be cleared by June 30, 2025, “under all circumstances.”

Giving Punjab a “last opportunity,” Justice Bahl directed it to file a specific affidavit detailing the total liability under the scheme, the committed liability year-wise for 2017-18, 2018-19 and 2019-20, the details of the amounts released with proof, the amounts sanctioned and actually disbursed to institutions, and whether the funds received from the Union of India, as admitted in its reply, had been released fully or partly, along with reasons for any non-release. Prima facie proof of disbursement was also ordered to be annexed.

The affidavit has to be filed before the next hearing on November 17.