A bench comprising Chief Justice J S Khehar and Justices D Y Chandrachud and S K Kaul asked both the governments to resolve the issue and submit a report within four weeks.
"This is a very very important issue. You both sit together and take a stand on it," the bench said.
Last month, the top court had imposed a cost of Rs 30,000 on Centre for not filing its reply to a Public interest litigation (PIL) alleging that minority benefits are being enjoyed by Muslims, who are in majority in Jammu and Kashmir. The court gave a final opportunity to file its reply, saying that the matter is important.
The court had, however, allowed the counsel for the Centre to file the response after depositing the cost and also noted that a fine of Rs 15,000 was imposed last time for the same reason.
Earlier, the court had issued notice to the Centre, the state government and the National Commission for Minorities (NCM) on the plea filed by Jammu-based advocate Ankur Sharma, alleging that benefits meant for minorities were being taken away by Muslims, who were in a majority in Jammu and Kashmir. The plea also alleged that rights of religious and linguistic 'minorities' in the state were being "siphoned off illegally and arbitrarily" due to extension of benefits to "unqualified sections" of the population.
The top court, however, had refused to restrain authorities from disbursing benefits to any community in the state.
The PIL has also sought the setting up of state minority commission for identification of minorities.
"The population of Muslims in Jammu and Kashmir according to the 2011 Census is 68.31 per cent. Communities which are eligible to be notified as minorities, were not awarded their due share of scholarship owing to their non-identification as minorities, thereby jeopardising their constitutionally guaranteed rights enshrined under Part III of the Constitution of India.
"This clearly reflects the unfairness and discrimination of the State towards the communities in the state of Jammu and Kashmir which are eligible to be notified as minorities," the petition alleged.
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