The top court said it can step in after the Centre specifically spells out the nature of directions needed to help such persons who have been cured of mental illness.
"You (Centre) tell us what kind of directions can be issued to rehabilitate these persons who are cured of mental illness and have been discharged from mental asylum," a bench of Chief Justice J S Khehar and Justice D Y Chandrachud said.
Solicitor General Ranjit Kumar told the bench that the issue was basically a state subject and to give it full effect, state governments should be consulted with.
"This is a state subject. We have to consult the states on framing of guidelines. If we will also have their comments and approval, then it will satisfy all," he said.
He, however, said he would go through Mental Healthcare Act 2017, which has been notified on April 7.
To this, the bench said, "more important is that if there is an Act, there has to be its implementation.
"You have to tell us how this will be implemented," the bench said and posted the matter for hearing on May 8.
The apex court had earlier favoured framing of a uniform national policy to deal with those suffering from mental illness and their release from hospitals after being cured.
The PIL, filed by advocate G K Bansal, has alleged that many underprivileged persons were still languishing in mental hospitals despite being cured and there was no policy in place to ensure their well-being after release.
The plea has also referred to responses received under the RTI with regard to the release of persons living in mental hospitals at Bareilly, Varanasi and Agra in Uttar Pradesh even after being cured.
The plea has sought issuance of directions to states and others to "forthwith make arrangements to shift the patients, who are absolutely normal and are fit for discharge, from the mental hospitals to any other secure place like Old Age Homes etc.
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