In a significant hearing on May 23, 2025, the Central Government informed the Madras High Court that funds under the Right to Education (RTE) Act and the Samagra Shiksha Scheme were not allocated to Tamil Nadu because the state had not signed the Memorandum of Understanding (MoU) required to implement the National Education Policy (NEP) 2020. The Centre stated that without the MoU, it could not release its 60% share of the funds.The explanation came during the hearing of petitions filed by the Tamil Nadu government and a public interest litigation. Tamil Nadu argued that it was forced to bear the entire financial burden of RTE admissions between 2021 and 2023, resulting in delayed admissions for the current academic year.
The state’s counsel criticized the Centre’s stance, calling it a “big brother” approach and said it unfairly penalizes economically weaker students. The High Court, expressing concern over the impasse, has directed the Centre to submit full details of funds allocated to the state and adjourned the case to May 30 for further hearing.