Supreme Court Questions Delhi Government’s Ad Expenditure Amid RRTS Funding Shortfall

Amidst concerns over Delhi Government's inability to fund the RRTS project, the Supreme Court orders a disclosure of the government's advertisement expenditure over the past three years.

Supreme Court of India

New Delhi (Agency): On Monday, the Supreme Court commanded the Delhi Government to disclose its advertisement expenditure over the past three fiscal years. The order was issued by a bench consisting of Justice SK Kaul and Justice Sudhanshu Dhulia, following revelations that the Delhi Government has withheld contributions to the Regional Rapid Transit System (RRTS) project, citing budgetary limitations.

The bench stated, “The Delhi State Government has expressed its inability to contribute the funds for the project. Since paucity of funds seems to be an impediment in the project on behalf of NCT of Delhi, we call upon the NCT of Delhi to file an affidavit setting forth the funds utilized for advertisements by the State Government as the project is of considerable importance. Details be furnished for the last three financial years.”

The order was issued during a hearing of the MC Mehta batch of cases, which focus on environmental concerns.

It came to light during the proceedings that the Delhi Government has been unwilling to invest in the project, particularly in the Delhi-Alwar and Delhi-Panipat corridors. The bench was asked to refer the matter to the relevant Commission for resolution. It was also shared that the Delhi Government had previously withheld funds for the Delhi-Meerut corridor.

The state government’s representative argued that the Delhi Government had made it clear in December 2020 that they were unable to provide their share of the funds. When Justice Kaul questioned the reasoning behind this, the response was a simple, “Because of lack of funds. That was the cabinet decision.”

Justice Kaul warned that, if necessary, the court could rule to redirect advertisement funds towards the project, asking, “Let us check what funds you have been spending…We will say that all funds for advertisement will be diverted … Do you want that kind of order?”

The state government’s counsel responded, stating that the government had communicated in 2020 that there were no funds available. She further explained, “The position has worsened due to COVID. The GST compensation provided by the Centre has also been stopped since the last financial year. Therefore there are no finances available.”

She further specified that the required contribution was upwards of INR 5000 crores. In response, Justice Kaul questioned, “Is it required at one go? Let us see how much you spend for other things. This is a development project. Though financial aspects we leave to the State Government but for a project of this nature when you say no funds we want to know how much you have spent on something like an advertisement. Making a project is also an advertisement that you are doing something.”

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