HC halts cash transfers in Andhra until voting on Monday
What's the story
The Andhra Pradesh High Court, on Friday, directed the ruling YSR Congress Party to stop direct cash transfers to beneficiaries of government schemes till May 13.
The date is when the southern state will go to poll in a single phase for 175 assembly and 25 Lok Sabha seats.
The court had earlier allowed disbursement till today but mandated a pause for 72 hours before the election day.
The funds, totaling around ₹14,165 crore, were set for distribution.
Petition response
Court's decision follows petition by beneficiaries
The HC's decision to halt cash transfers was a response to a petition filed by student and women beneficiaries of various government schemes.
Opposition parties had previously expressed concerns about the continuation of cash transfers during the election period, given the Model Code of Conduct is in effect.
Following these complaints, the Election Commission of India directed a suspension of funds until further notice.
Political accusations
CM accuses opposition of halting transfers
Andhra Pradesh Chief Minister Jagan Mohan Reddy has accused his predecessor, N Chandrababu Naidu, and his Telugu Desam Party (TDP), allied with the Bharatiya Janata Party, of seeking central assistance to halt ongoing Direct Benefit Transfers (DBTs) in the state.
Reddy alleged at a rally that this was an attempt to portray the ruling party negatively.
He claimed that pressure was being exerted on the ECI to stall DBTs for ongoing welfare schemes such as pensions and input subsidies.
Scheme continuation
Government argues against halting ongoing schemes
The YSR Congress Party government argued that the halted cash transfers were not for new schemes but ongoing ones, and therefore crediting money into beneficiaries' accounts could not be stopped.
The government's counsel stated that if the amount was not credited by May end, it would lapse.
However, the ECI's counsel clarified that they had not stopped the schemes but merely asked for payment deferral until after elections.