It said the mineral rich state was facing the problem of left-wing extremism, which has created a serious law and order situation.
The Centre told a bench of Chief Justice Dipak Misra and Justices A M Khanwilkar and D Y Chandrachud that a writ petition filed by two teenage sisters, Suneeta Pottam and Munni Pottam, be allowed to be decided by the high court.
"We in Chhatisgarh are facing a very peculiar problem of Naxalites. More policemen are being killed in the state every year than in Jammu and Kashmir. This is a very serious law and order situation," Additional Solicitor General Tushar Mehta, appearing for the Centre, said.
The sisters had alleged that those killed in fake encounters between 2015 and 2016 were ordinary villagers and not Maoists.
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Advocate Prashant Bhushan, appearing for the petitioners, said a similar petition filed by activist Nandini Sundar was pending in the top court and the instant petition can be taken up along with it.
"It would be wrong to submit that alleged human rights violations would itself constitute a question of law. There is no question of law framed, which would attract the provisions of Article 139-A(1) of Constitution," he said, opposing the transfer petition.
He said Sundar's petition dealt with Salwa Judum which is now a "dead movement" in the state. Salwa Judum, meaning 'purification hunt' in tribal Gond language, was a private militia mobilised and deployed to counter the Naxalite menace in the region.
The bench said it would take up the matter along with Sundar's petition on February 5.
The petition said that encounters were conducted in the name of counter-insurgency operations in the Maoist-affected areas of the state.
It said that in four encounters, Sukkum Kunjam, Kuhdami Ganga, Tati Pande and Manoj Hapka were killed by security forces, while a 10-year-old child went missing in February 2016.
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