Taking a strict stand on the free electricity scheme of Tamil Nadu, the Supreme Court has issued a notice to the Central and State Governments. During the hearing on the petition of Tamil Nadu Power Distribution Corporation Limited (TANGEDCO), the bench of Justice Sanjiv Khanna raised many important questions and expressed concern over the culture of ‘free facilities’ spreading across the country.
Supreme Court gave strict advice to Tamil Nadu government
During the hearing on 19 February 2026, the Supreme Court said, ‘What kind of culture are we developing in the country? There should be a welfare scheme for those who are unable to pay the electricity bill. Why free facility for all? Justice Khanna further said that such a trend is increasing in every state and the court is very concerned about it.
The bench questioned the Tamil Nadu government that if the state has so much money, why is it not being invested in the development of infrastructure, hospitals, schools and colleges? The court has commented that instead of distributing goods at the time of elections, states should review their policies. The duty of the state is to create employment opportunities.
Governments running free schemes despite revenue deficit: Court
The Supreme Court said in a more strict tone that if free food is given all day, then free bicycles, then free electricity and now cash transfer is started directly into people’s accounts, then where will the money be left for development? The court noted that most states are in revenue deficit, yet are forced to spend due to these policies.
What is this matter?
This hearing was on the scheme of DMK government of Tamil Nadu, in which up to 200 units of electricity is provided free. TANGEDCO had filed a petition against a circular of the Central Government, in which power companies were barred from giving tax exemption on the bills of subsidized consumers. But the court did not limit the matter only to tax, but expressed deep concern over the increasing trend of ‘freebies’ in the entire country.

