The Supreme Court on Thursday sharply criticized the culture of offering freebies, emphasizing that it was high time to reconsider such policies that hinder the country’s economic growth.



The remarks came during the hearing of a plea from the Tamil Nadu Power Distribution Corporation Ltd, which proposed free electricity for all, regardless of the consumer's financial status. The court acknowledged the need to support the poor, but cautioned against universal handouts that overlook economic development.



The bench, led by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul M Pancholi, remarked, “Most states in the country are revenue-deficit and yet are offering such freebies, which are harming development.”



The court differentiated between welfare assistance for the needy and universal schemes that benefit financially secure households as well.



"What kind of culture are we developing?" the Chief Justice questioned. "It's understandable to provide welfare for those who cannot afford it, but when benefits are given indiscriminately, without distinguishing between those who can pay and those who cannot, are we not encouraging an appeasing policy?"



The bench expressed concern that the country’s economic development was being undermined by excessive distribution of resources, such as free food, electricity, and other handouts, instead of focusing on creating sustainable employment opportunities.



“It’s time states work towards creating avenues for employment, not free cycles or free electricity,” the CJI said. “If you keep handing out freebies, what happens to the work culture?”



The court also pointed out that many states tend to spend large portions of their budgets on salaries and subsidies, rather than on development projects.



The bench concluded that states are spending excessively on non-productive areas, leaving little for long-term infrastructure development.



This statement was made while the court reviewed the plea filed by the DMK-led Tamil Nadu government against a provision in the Electricity Amendment Rules, 2024. The Supreme Court issued a notice to the Centre and other parties regarding the petition.