The Supreme Court granted interim protection to the Dalit Indian Chambers of Commerce and Industry (DICCI) by staying a Madras High Court order that raised allegations of irregularities in the implementation of a government welfare scheme intended for sanitation workers and Dalits. The Court directed the High Court to afford DICCI an opportunity to be heard before proceeding further, while observing that the matter could have waited for a regular hearing post-vacation.
The matter pertains to the Annal Ambedkar Business Champions Scheme (AABCS), a welfare initiative of the Tamil Nadu Government. A public interest litigation was filed before the Madras High Court by YouTuber Savukku Shankar, alleging that the execution of the scheme was fraudulently entrusted to DICCI, a body that had not yet been made a party to the case. The PIL alleged that the scheme’s benefits were diverted to individuals with political affiliations rather than the targeted marginalised communities.
During the hearing before the High Court’s Vacation Bench comprising Justice GR Swaminathan and Justice V Lakshminarayanan, the petitioner contended that the DICCI had links to the Tamil Nadu Congress Committee (TNCC) President and MLA K. Selvaperunthagai. On this basis, it was argued that the awarding of scheme-related contracts was politically influenced, and the petitioner sought a probe by the Central Bureau of Investigation (CBI) into the matter.
On May 14, the High Court sought a response from the State and impleaded the Municipal Administration and Water Supply Department, the MSME Department, and the Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) into the proceedings. It further called for the production of relevant documents pertaining to the scheme. On May 16, the Additional Advocate General J. Ravindran, representing the Municipal Administration Department, sought additional time to place further records on record.
The counsel for the State, including Advocate General PS Raman, vehemently denied the allegations, stating there was no misappropriation in the scheme’s execution. The AG also submitted that a CBI inquiry would not be permissible without the prior approval of the Court, given the federal structure and applicable legal protocols in Tamil Nadu.
Taking note of DICCI’s grievance that it was not heard by the High Court despite being at the center of the controversy, the Supreme Court observed, “Let the present petitioners be impleaded as respondents. Let the High Court consider the application and let an order be passed after hearing all parties. Till such an order is passed, let the impugned order be kept in abeyance.”
The Bench, comprising Chief Justice of India BR Gavai and Justice AG Masih, also expressed concern over the procedural urgency with which the matter was taken up by the High Court during summer vacation. CJI Gavai questioned, “What was the urgency that the Court had to take this up during vacation?”
Ultimately, the Apex Court stayed the operation of the interim order passed by the Madras High Court until a hearing is conducted with DICCI’s participation. The Top Court clarified that no further directions shall be issued by the High Court in the matter without hearing all necessary parties. The Madras High Court is expected to take up the case again on May 21.
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