The Kerala High Court has clarified that Akshaya Centres cannot be treated as business establishments with a profit motive. Justice N Nagaresh observed that the centres are designed to serve the public by connecting citizens with government services and reducing the digital divide.
The ruling came in response to petitions filed by the Forum of Akshaya Centre Entrepreneurs and the All Kerala Akshaya Entrepreneurs Confederation. They challenged a government order that fixed service charges for K-smart services, arguing that the order was issued without consulting centre representatives and did not account for the actual workload and costs involved.
The petitioners also pointed out that an earlier order of the Local Self Government Department had allowed online service providers to levy per-page charges, a benefit they claimed was taken away by the new directive.
The Court, however, dismissed the petitions, stating that Akshaya entrepreneurs operate under agreements with the government and are bound by those terms. It held that they have no statutory or legal right to demand or dictate charges for services provided to the public.
“The relationship between the petitioners and the government is purely contractual. The petitioners have the right to accept the terms of the contract or quit,” Justice Nagaresh noted.
Project Akshaya, launched by the Kerala State IT Mission under the Department of Information Technology, was designed as a public-private partnership model to make government services more accessible. All government-to-citizen services are mandated to be routed through Akshaya Centres, which are operated by entrepreneurs selected through a recruitment process and formal agreements with the District Collector.
The High Court’s decision reinforces the government’s control over service charges, positioning Akshaya Centres firmly as public service touchpoints rather than profit-driven businesses.
