The social-justice bench comprising justices Madan B Lokur and U U Lalit said the Ministry of Housing and Urban Poverty Alleviation is under an obligation to monitor the use of funds given to states.
"Around Rs 10,860 crore has not been used so far and it has to be spent by the states by March 31 this year," the counsel for the Centre told the bench which, in turn, asked about measures which the Centre can take.
"You have to make sure that the funds are used. You have to have a system to ensure that schemes are implemented," the bench said.
During the hearing, it observed that many states have not even constituted the executive committees as provided under the National Urban Livelihoods Mission.
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Earlier, the court had asked the Centre to convene a meeting of chief secretaries of all the states to find out the steps taken by them so far to provide necessary temporary shelter to homeless persons.
It had asked the states to inform the Chairperson of the Executive Committee of the Government of India about the composition of the State Executive Committee.
The bench had asked the Centre and states to undertake surveys of available facilities in existing temporary or permanent shelters across the country.
The bench was hearing a PIL filed by advocate E R Kumar seeking direction to governments to build shelter homes as many homeless people die due to cold weather.