An institution’s right to govt. aid is not a fundamental right: SC 

What is the news? 

As per a recent judgement of the Supreme Court, the right of an institution, whether run by a majority or minority community, to get government aid is not a fundamental right.

Both have to equally follow the rules and conditions of the aid. 

The judgement came in an appeal filed by Uttar Pradesh against a decision of the Allahabad High Court to declare a provision of the Intermediate Education Act of 1921 unconstitutional. 

What did the SC say? 

First, for both majority or the minority institution, all conditions that have relevance to the proper utilisation of the grant-in-aid by an educational institution can be imposed. All that Article 30(2) states is that on the ground that an institution is under the management of a minority, whether based on religion or language, grant of aid to that educational institution cannot be discriminated against, if other educational institutions are entitled to receive aid.  

Second, if the government made a policy call to withdraw aid, an institution cannot question the decision as a “matter of right”. 

Third, a grant of government aid comes with accompanying conditions. An institution is free to choose to accept the grant with the conditions or go its own way. 

Fourth, an institution can never be allowed to say that the grant of aid should be on its own terms. 

Why institutions cannot view government aid as a “matter of right”? 

Firstly, government aid is a policy decision. It depends on various factors including the interests of the institution itself and the ability of the government to understand the exercise. 

Secondly, Financial constraints and deficiencies are the factors which are considered relevant in taking any decision regarding aid. It includes both the decision to grant aid and the manner of disbursement of an aid. 

What are the challenges associated with decision? 

The real challenge of the decision made lies in its implementation. 

Even in a case where a policy decision is made to withdraw the aid, an institution cannot question it as a matter of right. Such a challenge would still be available to an institution, when a grant is given to one institution as against the other institution which is similarly placed. 

Source: This post is based on the article “An institution’s right to govt. aid is not a fundamental right: SC” published in The Hindu on 27th Sep 2021.