Chhattisgarh Pursues Massive Financial Claim from Madhya Pradesh Decades After Statehood
More than a quarter-century after its creation as a separate state, Chhattisgarh is now pressing Madhya Pradesh for substantial financial compensation related to unresolved pension obligations. The demand, totaling an astonishing Rs 10,133 crore, represents one of the most significant post-separation financial disputes between the two states.
Formal Demand and Legislative Revelation
During the Madhya Pradesh assembly session on February 27, Deputy Chief Minister Jagdish Devda, who also oversees the finance department, confirmed that the Chhattisgarh government had formally submitted a claim for this substantial amount. The disclosure came in response to questioning from Opposition Leader Umang Singhar, who sought clarity on pending pension payments for government employees who transitioned to Chhattisgarh during the 2000 separation.
Devda elaborated that the liability emerged following a comprehensive re-verification and audit of pension liability payments conducted by Chhattisgarh authorities. This review apparently uncovered significant unclaimed funds that Chhattisgarh believes rightfully belong to the state.
Legal Framework and Proportional Division
The financial claim finds its basis in Section 49 of the Madhya Pradesh Reorganisation Act, 2000, specifically the Sixth Schedule, which mandates that pension liabilities between successor states be divided according to population proportions. The established ratio for this division stands at 48,566:17,615 between Madhya Pradesh and Chhattisgarh respectively.
In his written response to legislative inquiries, Devda confirmed that Chhattisgarh's formal communication, dated August 1, 2025, was received by the Madhya Pradesh finance department on that same date. The correspondence explicitly detailed the Rs 10,133 crore demand, marking a significant escalation in the long-standing financial discussions between the neighboring states.
Establishment of Joint Working Group
In response to this substantial claim, authorities have established a joint working group comprising officers from both states. This collaborative body was formally constituted through a finance department order dated November 28, 2025, with the explicit mandate to thoroughly examine and resolve the complex pension liability issue.
Devda informed the assembly that the matter is currently "under study" by this newly formed group, indicating that both states recognize the need for careful deliberation given the enormous financial implications involved.
Historical Context and Ongoing Implications
This financial dispute emerges precisely as Chhattisgarh recently commemorated the silver jubilee of its statehood recognition. The timing underscores how financial matters from the 2000 separation continue to reverberate through inter-state relations decades later.
The Opposition's questioning revealed several critical concerns:
- The precise reasons behind the liability's emergence
- Whether the matter has received attention at the highest government levels
- What conclusions, if any, have been reached during preliminary examinations
As the joint working group begins its deliberations, this financial claim represents not merely an accounting dispute but a significant test of post-separation financial reconciliation between two states with deep historical ties. The resolution of this Rs 10,133 crore demand will likely establish important precedents for how such inter-state financial matters are handled in India's federal structure.
