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SC criticises freebie culture, says might hamper economic growth
Feb-19-2026

The Supreme Court (SC) of India has sharply criticised the culture of freebies, saying such policies hamper India’s economic growth. Taking note of the Tamil Nadu Power Distribution Corporation Ltd's plea, which proposed to provide free electricity to all irrespective of financial status of consumers, the top court said it was quite understandable if states hand-hold the poor.

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi emphasised that while it is the state’s responsibility is to empower its people, giving out freebies from morning to night is not the way to build the nation. Most states are already running a revenue deficit, and such policies only exacerbate the situation, leaving no funds for development.

CJI Surya Kant asked what kind of policy culture was being created if benefits were extended without distinguishing between those who can afford to pay electricity bills and those who are marginalised. While acknowledging the welfare state’s duty to support the vulnerable, he cautioned that extending benefits indiscriminately, without clear eligibility criteria, could amount to an appeasement-driven approach rather than targeted relief. The Bench also raised questions on the sudden decision of the Tamil Nadu power firm to provide free electricity.

The top court further said economic development of the nation gets hampered with this kind of largesse distribution and states should work to open avenues for employment instead of giving free food, cycles, electricity to all. 

Following this, SC issued a notice to the Centre and others on the plea of the DMK government-led power distribution firm, which proposes to provide free electricity. The power firm has challenged a rule of the Electricity Amendment Rules, 2024.


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