The Madras High Court has raised critical questions about the financial situation of the Tamil Nadu government, following a petition filed by a private company seeking delayed payments for essential supplies.
The issue arose during the hearing of a case filed by KTV Health Food Private Limited, which had supplied cooking oil under the Public Distribution System (PDS) in Tamil Nadu. According to the terms of the government tender, the payment of ₹141.22 crore was to be made within 30 days. However, the company alleged that the amount remains unpaid well beyond the stipulated period.
The petition was heard by Justice N. Anand Venkatesh, who expressed concern over the government’s handling of financial obligations. Counsel for the petitioner stated that not only had ₹141 crore remained unpaid, but the total dues had exceeded ₹200 crore, while the government was proceeding to float a new tender without settling existing payments.
Justice Venkatesh observed that multiple similar cases have come before the court in the past two weeks, including those related to pending retirement benefits. He remarked, “What is happening in the state? The state government should lead by example. Is this a case of unwillingness to pay or is the government facing a financial crisis?”
He further warned that such delays in fulfilling contractual obligations and dues reflect poorly on governance and must be addressed with seriousness.
The court directed the Additional Advocate General representing the state to clarify the government’s position on the pending payments. The case has been adjourned to 27 June 2025 for further hearing.
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