Supreme Court Rebukes State for Bureaucratic Inaction, Upholds Investment Incentives

The Supreme Court criticized bureaucratic inactivity, emphasizing that it hinders entrepreneurship. A verdict restored financial incentives to an appellant firm, previously denied by an Orissa High Court decision. The ruling highlighted the need for government accountability and transparency to maintain public trust and foster a business-friendly environment.

The Supreme Court has reprimanded state authorities for bureaucratic inertia, which it identified as detrimental to entrepreneurial ventures. The apex court's observations came during a ruling on an appeal against a December 2018 judgment by the Orissa High Court, which had previously denied financial incentives to a company under an industrial policy.

Justices J B Pardiwala and R Mahadevan emphasized that state policies generate legitimate expectations that must align with constitutional guarantees against arbitrariness. The bench highlighted that any governmental actions curtailing citizen or business rights must be proportional and justified by public interest.

The court's decision mandates the disbursement of Rs 11,14,750, plus interest, in subsidies to the appellant firm, underlining that creating a business-friendly climate is crucial for industrial growth and maintaining public faith in state actions.

(With inputs from agencies.)