BENGALURU, SEPT 10: The Karnataka government has decided to approach the Supreme Court over the Centre’s alleged withholding of ₹2,186.20 crore in grants due to the state’s gram panchayats under the recommendations of the 15th Finance Commission.
The decision was taken at a meeting chaired by Panchayat Raj Minister Eshwar Khandre at Vidhana Soudha. Advocate General Shashikiran Shetty and senior officials attended the meeting, where the legal options available to the state were discussed.
The state government has objected to the Centre’s refusal to release funds allocated to gram panchayats for the 2025-26 financial year. Karnataka maintains that the grants are due to the state as per the 15th Finance Commission’s recommendations.
Water crisis adds to rural distress
Khandre said the withholding of funds comes at a time when several parts of Karnataka are facing water shortages following inadequate rainfall.
According to the minister, 710 villages are facing drinking water problems, while 149 villages are being supplied water through tankers. The state has also hired 561 private borewells to meet the drinking water demand.
Khandre said poor rainfall has also affected agricultural activities, with farmers reporting that seeds sown in several areas failed to germinate.
Against this backdrop, the state government believes the non-release of panchayat grants could further strain rural infrastructure and essential services.
Legal challenge in the works
During Thursday’s meeting, Khandre discussed with the Advocate General and officials the legal grounds on which the Centre’s decision could be challenged.
The government has now decided to seek the Supreme Court’s intervention and press for the release of the ₹2,186.20 crore it says is due to Karnataka’s gram panchayats.