Archive · 11 Sep 2026
Karnataka to Move Supreme Court Over ₹2,186-Crore Grant Withholding
Karnataka says the Centre has not released ₹2,186.20 crore meant for its village councils.
The money was allocated under the 15th Finance Commission’s recommendations for 2025-26.
Minister Eshwar B. Khandre says the state will ask the Supreme Court to examine the dispute.
He discussed the possible case with the Advocate General and other officials in Bengaluru.
The issue comes as some parts of Karnataka face drought-like conditions after inadequate rainfall.
Drinking-water problems have been reported in 710 villages.
Tankers are supplying water in 149 villages, and 561 private borewells have been hired.
The government is also preparing delayed local elections after staff were assigned to Special Intensive Revision work.
Karnataka plans to approach the Supreme Court over ₹2,186.20 crore withheld by the Centre.
The grants were allocated to Karnataka’s Gram Panchayats under 15th Finance Commission recommendations for 2025-26.
Minister Eshwar B. Khandre discussed legal options with Advocate General Shashikiran Shetty and senior officials.
Water shortages have been reported in 710 villages, with tankers supplying 149 villages and 561 private borewells hired.
The state is preparing elections for Gram, Taluk and Zilla Panchayats whose terms have expired.
- Who
- The Karnataka government, led on the issue by Rural Development and Panchayat Raj Minister Eshwar B. Khandre, and the Centre.
- What
- Karnataka plans to challenge the withholding of ₹2,186.20 crore in Gram Panchayat grants before the Supreme Court.
- When
- The decision was announced on Thursday; the grants concern the 2025-26 financial year.
- Where
- Legal options were discussed in Bengaluru, while water shortages affect villages across parts of Karnataka.
- Why
- Karnataka says the funds are its rightful share, while the state is also facing water shortages and drought-related agricultural difficulties.
Karnataka’s Position
Centre’s Position
Release of grants
Karnataka’s Position
Karnataka considers the ₹2,186.20 crore its rightful share and plans to seek relief from the Supreme Court.
Centre’s Position
The Centre has withheld the funds, but the articles do not provide its reasons or a detailed response.
Urgency of funding
Karnataka’s Position
Karnataka says the withholding is significant amid water shortages, drought-like conditions and farmers’ reports of seeds failing to germinate.
Centre’s Position
The articles do not state the Centre’s response to Karnataka’s concerns about water and agricultural difficulties.
Local elections
Karnataka’s Position
The state says it is now prepared to conduct elections whose terms have expired and will issue a preliminary notification shortly.
Centre’s Position
The articles do not provide a separate position from the Centre on the delayed local elections.
- Amount withheld
- ₹2,186.20 crore
- Intended recipients
- Karnataka’s Gram Panchayats
- Funding basis
- Recommendations of the 15th Finance Commission
- Funding year
- 2025-26
- Villages reporting water shortages
- 710
- Villages receiving tanker supplies
- 149
- Private borewells hired
- 561
- Election status
- Preparations are underway for delayed Gram Panchayat, Taluk Panchayat and Zilla Panchayat elections.
