Centre tells SC it cannot pay Rs 4 lakh ex-gratia to COVID-19 victims

New Delhi: In response to a plea seeking "minimum standards of relief" and ex-gratia payment to Covid-19 deceased, the Centre on Monday told the Supreme Court that Rs 4 lakh compensation cannot be paid to all those who died of Covid-19 as it would exhaust the disaster relief funds.

The centre added that the compensation couldn't be provided as the disaster management law that mandates compensation applies only to natural disasters.

Solicitor General Tushar Mehta, representing the Centre, submitted before a bench comprising Justices Ashok Bhushan and M.R. Shah that it was not the case that government doesn't have funds to pay ex-gratia of Rs 4 lakh to kin of Covid victims, but the focus on expenditure is wholistic, which includes using the funds for rehabilitation, mitigation, preparedness.

However, Justice Shah responded that the decison will have a a wide ramification if government says it has no funds.

The bench asked Centre to provide details on compensation provided to people who have succumbed to Covid-19 by each state and what fund was being utilized.

The Centre had informed the top court that most states are paying from funds other than State Disaster Relief Fund (SDRF).

A counsel appearing for an intervenor in the matter submitted that there is no uniform scheme on compensation to Covid victims.

He argued that in Delhi, Rs 50,000 is being paid while in Bihar, Rs 4 lakh is paid for Covid deaths. Insisting on a uniform compensation policy, he said, "Why this disparity? Why should the Centre allow this? How could people in the same situation be treated unequally?"

The bench queried if there was any decision by the national authority not to give ex-gratia

Mehta replied he is not aware if the national authority has taken a decision or not, and submitted that the finance commission has taken a call though. He added that the commission has disbursed the finance to state disaster response and tried to help the people affected by the Covid pandemic.

In response, the bench queried if the commission can't override statutory obligations.

Secondly, on the aspect of a uniform policy and guidelines for issuance of death certificates for those affected with Covid-19, the top court noted that prima facie it finds the process very complicated.

After hearing the matter for over two hours, the top court asked Mehta, senior advocate S.B. Upadhyay and other lawyers to file written submissions in three days.