The Supreme Court on Friday reserved the order on a Kerala government plea seeking interim relief in a suit by Kerala against Centre alleging the union government is interfering with its borrowing powers.
A bench of justices Surya Kant and KV Viswanathan reserved the order on the issue of interim relief.
Senior Advocate Kapil Sibal for Kerala Government has raised questions over Centre’s conduct in a federal structure.
The Kerala Government is seeking interim relief on financial issues in a suit filed by the state government against the Centre.
Attorney General R Venkataramani appearing for Centre said that the state government’s own act says that they will govern their own fiscal discipline. There is no question of Finance Commission recommendations being breached at all.
Earlier the Central Government proposed that an amount of Rs 5,000 crore can be given to Kerala in the present financial year as a one-time measure subject to conditions.
Senior advocate Kapil Sibal, appearing for the State of Kerala, had expressed disagreement on the Centre’s proposal, saying that it is based on a presumption that the state was not entitled to the additional borrowing. He also argued that Rs 5,000 crore will not be sufficient.
The Supreme Court from time to time suggested the Centre and Kerala to negotiate and solve the issues by sitting together.
Earlier in its affidavit, the Kerala Government said that Central Government accounts for approximately 60 per cent of the total debt or outstanding liabilities of India.
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