Karnataka Plans Supreme Court Move Over Rs 2186 Crore Grant

The Karnataka government has decided to approach the Supreme Court over Rs 2186 crore in grants that it says are due to the states gram panchayats. The decision was taken during a meeting chaired by Panchayat Raj Minister Eshwar Khandre, where the legal options available to the state were discussed.

According to the state government, gram panchayats were supposed to receive Rs 2186.20 crore for the 2025 to 2026 financial year in line with the recommendations of the 15th Finance Commission. Karnataka has objected to the Centre withholding the amount and has now decided to challenge the decision before the Supreme Court.

The issue was discussed at Vikas Soudha during a meeting attended by Khandre, Advocate General Shashikiran Shetty and senior officials. The meeting focused on whether the Centre’s decision to withhold the allocated funds could be legally challenged and what steps the state could take to secure the pending amount.

Khandre expressed dissatisfaction with the Centre’s decision, particularly at a time when several rural parts of Karnataka are dealing with financial and basic infrastructure pressures. The minister said the release of funds was important for gram panchayats to continue addressing local needs.

The state has also pointed to water shortages in several villages. According to the minister, 710 villages are facing drinking water problems, while tanker supplies have been arranged for 149 villages. The government has also taken 561 private borewells on rent to meet the drinking water requirement in affected areas.

Agricultural concerns have added to the pressure. Khandre said farmers in some areas were struggling after seeds failed to germinate following sowing. The situation has increased the difficulties faced by rural communities and placed additional demands on local administrations.

Against this backdrop, the state government believes the pending grant could provide important financial support to gram panchayats. The government has therefore decided that the withholding of the funds should be questioned through legal channels.

During the meeting, officials and the Advocate General discussed the legal aspects of seeking the release of the amount. The discussions eventually led to the decision to approach the Supreme Court over the pending Rs 2186.20 crore.

The grant dispute comes at a time when local bodies are expected to handle several essential responsibilities in villages, including drinking water arrangements and other basic civic requirements. The state government has maintained that the funds recommended for the gram panchayats should be released as per the applicable financial arrangements.

The Supreme Court move will now be the next major step for Karnataka in its effort to secure the pending funds. The state is expected to present its legal arguments regarding the withholding of the grant and seek appropriate relief from the court.

The matter could also become another point of discussion between Karnataka and the Centre over the allocation and release of funds to the state. For the gram panchayats, however, the immediate concern remains the availability of money to meet growing local requirements.

Karnataka’s decision follows the meeting led by Khandre, where the financial situation of gram panchayats, the pending grant and the legal options before the state were considered together. The government has now chosen the judicial route to challenge the withholding of the Rs 2186.20 crore allocation.