The Supreme Court of India has issued a stern warning to state governments regarding the announcement of cash transfer schemes just before elections, cautioning that such practices could jeopardize the nation's long-term economic stability.
On February 19, 2026, a bench led by Chief Justice Surya Kant scrutinized these schemes' rationale, arguing that indiscriminate state benefits foster a culture of appeasement rather than promoting economic growth. The bench, comprising Justices Joymalya Bagchi and Vipul Pancholi, deliberated on a writ petition by the Tamil Nadu Power Distribution Company Ltd, which challenged Rule 23 of the Electricity Amendment Rules 2024. Chief Justice Kant remarked, "If these direct cash transfer schemes are introduced, will people even feel the need to work?"
