SUPREME COURT ON EX GRATIA PAYMENT

Ex gratia

• Payment that is made to an individual – for damages
or claims.

• Party providing such assistance has no liability in
making the payment – moral commitments and
obligations.

Disaster management act – ex gratia assistance

• Enacted in the year 2005 – effective management of
disasters.

• Section 12 – describing the Guidelines for minimum
standards of relief.
Sub section (iii) – ex gratia assistance to be provided to the victims on account of loss of life.

2015 notification – government to pay ex gratia of ₹4 lakh each to victims’ families – under section 12
of DM act.

Government’s Response – negative

• Section 12 – recommendatory in nature and doesn’t mandate the government to provide it.

• Focus on utilising funds for food, medical care, oxygen,
vaccination – boost the economy – rather than pay a
one-time compensation.

• 15 th Finance Commission report for 2021-2026 – fixed
the funds for disaster management to ₹15,000 crore.
SC Justice – FC report cannot override a statutory provision .

Criticism

• Government for its inconsistency and
vague statement.

• Government – more concerned with the
areas of priority – question on its redevelopment projects such as the
Central Vista.

• Essential to spend on health infra development along with a helping hand to families impoverished now.

• IMF analysis of policy response:
Food, fuel & cash transfers to lower-income
households – 1.2% of GDP.
Budget and Atma Nirbhar Bharat Package –
13% of GDP.

Conclusion

• Suggestion to the Centre to review its tax