SupremeToday Landscape Ad
Can the Government Discriminate Citizens in the Granting of State Largesse?

Can the Government Discriminate Citizens in Granting State Largesse?

In a welfare state like India, the government often distributes valuable resources—known as state largesse—such as land allotments, licenses, quotas, permits, dealerships, and contracts. But can it pick and choose favorites? The question arises: Can Government Discriminate Citizens in the Matter of Grant of State Largesse? This issue strikes at the heart of constitutional equality, raising concerns about fairness, transparency, and arbitrary power.

This blog post delves into the legal principles governing state largesse, drawing from judicial precedents and constitutional mandates. While the government holds discretion in policy-making, it is not above the law. We'll examine key rulings, the role of Article 14, and practical implications. Note: This is general information, not specific legal advice. Consult a qualified lawyer for your situation.

Constitutional Foundation: Article 14 and Equality

Article 14 of the Indian Constitution guarantees equality before the law and equal protection of the laws. It prohibits arbitrary state action, ensuring that the government treats citizens equally unless there's a rational basis for differentiation.

The Supreme Court has repeatedly held that the government is constitutionally required to avoid discrimination among citizens in the matter of granting State largesse. Any preferential treatment or arbitrary allocation violates these principles. As emphasized, every action/decision of the State and/or its agencies/instrumentalities to give largesse or confer benefit must be founded on a sound, transparent, discernible and well-defined policy2018 0 Supreme(SC) 448.

Discrimination in benefits like land or licenses, without a transparent process, breaches Article 14 2012 7 Supreme 683. The State acts as a trustee of public property, bound to ensure equal treatment and shun favoritism or nepotism 2018 0 Supreme(SC) 448.

Judicial Precedents on Non-Discriminatory Distribution

Courts have struck down arbitrary grants, insisting on fairness. For instance, in matters of distribution of State largesse, such as, allotment of land, grant of quotas etc., State action must be non-arbitrary and non-discriminatory2014 0 Supreme(Gau) 757 2014 0 Supreme(Gau) 295.

In a landmark view, the Government by its policy decisions cannot meet out invidious discrimination to a citizen or class of citizens, more so when such decisions pertain to distribution of public largesse2020 0 Supreme(J&K) 682. Policy decisions in public interest may evade review if bona fide, but not if discriminatory.

Another ruling clarifies: wherever the Government or public bodies deals with grant of largesse, they must act in a non-discriminatory manner2017 0 Supreme(Chh) 78. Referencing Ramana Dayaram Shetty v. International Airports Authority of India (1979), the Court noted the government's welfare powers but stressed fairness due to the public element.

It is contended that in the matter of distribution of its largesse, the Government cannot discriminate2008 0 Supreme(Mad) 2133. Schemes with public funds are reviewable if discriminatory without intelligible nexus.

Prohibiting Favoritism, Nepotism, and Arbitrariness

The element of favouritism or nepotism shall not influence the exercise of discretion2012 7 Supreme 683. Treating largesse distribution as a private venture invites scrutiny as arbitrary and discriminatory 2012 7 Supreme 683. The State cannot act arbitrarily at its sweet will and, like a private individual, deal with any person it pleases2012 7 Supreme 683.

Sources highlight risks like parochial tendency to discriminate citizens in allotments or licenses

KANWALJEET SINGH BATRA vs UTTARAKHAND STATE WAREHOUSING CORPORATION - Uttarakhand

. The distribution of largesse like allotment of land, grant of quota, permit licence must follow equitable norms

SRI.VENKATESH vs THE STATE OF KARNATKA - Karnataka

.

Further, Government Discretion and Rights in Largesse requires structured, rational standards, not akin to private choices 2024 0 Supreme(Cal) 307 2023 0 Supreme(All) 1130. Courts intervene against blacklisting or unfair practices demanding higher transparency 2022 0 Supreme(HP) 796 2021 0 Supreme(UK) 745.

Role of Transparency and Fair Policy

Transparency is key. The process must be open, non-discriminatory, and based on objective criteria. Good faith alone isn't enough; a well-publicized, fair policy is mandatory 2018 0 Supreme(SC) 448.

The power or discretion of the Government in grants, including jobs or contracts, demands non-arbitrariness

SRI.VENKATESH vs THE STATE OF KARNATKA - Karnataka

. Political influence must be avoided, distinguishing official acts from campaigning 2021 0 Supreme(Mad) 912.

Exceptions and Limitations

The government enjoys broad policy discretion, especially for welfare schemes targeting backward classes or economically weaker sections 2025 Supreme(Online)(CAT) 400 2024 0 Supreme(All) 1014. Discrimination and Equality Principles allow classifications based on objective criteria like dependency, not caste or residence alone 2024 0 Supreme(AP) 380 2024 0 Supreme(All) 1014.

However, courts refrain from substituting better policies but quash those invidiously discriminatory2020 0 Supreme(J&K) 682. Articles 14 and 15 restrict arbitrariness 2022 0 Supreme(HP) 796.

Practical Implications for Citizens and Businesses

  • Land Allotment: Must follow auctions or lotteries, not discretion favoring allies.
  • Licenses and Permits: Transparent tenders prevent nepotism.
  • Quotas and Dealerships: Rational criteria ensure equality.
  • Contracts and Jobs: Public procurement rules mandate fairness.

Citizens facing discrimination can challenge via writ petitions, citing these precedents. Businesses should verify processes for compliance.

Key Takeaways

Final Thought: The State's role as public trustee demands equity. As held, the State must allocate public property and benefits subject to the principles of equality and fairness2018 0 Supreme(SC) 448. Arbitrary actions undermine democracy.

Word count: 1028. References are indicative of judicial consensus; full judgments provide context.

References

  1. 2018 0 Supreme(SC) 448: Emphasizes transparent policy for largesse.
  2. 2012 7 Supreme 683: Prohibits arbitrary discrimination.
  3. 2014 0 Supreme(Gau) 757, 2014 0 Supreme(Gau) 295: Non-arbitrary state action.
  4. 2020 0 Supreme(J&K) 682: Against invidious discrimination.
  5. 2017 0 Supreme(Chh) 78: Non-discriminatory grants.
  6. Others integrated as noted.
#StateLargesse, #Article14, #LegalEquality
Chat Download
Chat Print
Chat R ALL
Landmark
Strategy
Argument
Risk
Chat Voice Bottom Icon
Chat Sent Bottom Icon
SupremeToday Portrait Ad
whatsapp-icon Back to top