PIL In Patna High Court Alleges Gross Mismanagement Of Health & Education Cess Funds Since 2008

Advocate Shama Sinha, the petitioner, argued that the failure to appropriately utilize these funds has adversely affected education in India, specifically in the State of Bihar.

Emphasizing the fundamental principle that a cess is a specific levy collected for a particular purpose, in this case, the enhancement of education and health initiatives, the petition highlights serious deficiencies in channelling these funds for their intended objectives.

“However, despite substantial collections over the years, there have been serious deficiencies in channelling these funds for their intended objectives. The Madhyamik and Uchchtar Shiksha Kosh (MUSK), designed to utilize these funds for educational schemes, has not been operationalized till date as per CAG report,” the petition states.

The petition underscores multiple reports by the Comptroller and Auditor General (CAG) of India, parliamentary standing committees, and recent budget allocations, all of which underscore the underutilization, misallocation, and delays in the utilization of these cess funds. Furthermore, the petitioner emphasizes the lack of transparency, accountability, and compliance with CAG recommendations in managing these funds.

In light of these concerns, the petitioner has prayed the Court to issue directions to the respondents to ensure the immediate and proper utilization of the accumulated funds, operationalize MUSK as per statutory obligations, establish a transparent mechanism for fund management, and adhere to CAG recommendations.

Additionally, the petitioner has sought the Court's intervention to enforce the principles of fiscal accountability, transparency, and good governance.