Shimla
The Himachal Pradesh High Court has stayed two state government notifications that earmarked a portion of the Local Area Development Fund (LADF) for financial assistance to orphans, observing that the funds are meant for development of project-affected areas and not for purposes outside their intended scope.
Hearing a public interest litigation filed by Janak Raj, the division bench comprising Chief Justice G.S. Sandhawalia and Justice Bipin C. Negi noted that the Swaran Jayanti Energy Policy, 2021 provides for the creation of the LADF to support infrastructure and development works benefiting local communities affected by hydro power projects.
The petitioner argued that the government had amended the policy through notifications issued on September 23, 2025 and March 18, 2026, diverting 10%—later increased to 40%—of the LADF for orphan welfare through the Social Justice and Empowerment Department. It was contended that such diversion was contrary to the objectives of the policy.
The court observed that the notifications did not indicate that the funds would be utilised for orphans belonging to the project-affected areas from where the money was collected. Keeping this in view, the bench stayed the operation of both notifications until further orders.
The matter has been directed to be listed along with CWPIL No. 76 of 2026 for further hearing.
