Take ₹13,608 crore offered by Centre: SC
On Wednesday, Justice Viswanathan asked the Centre, represented by AttorneyGeneral R. Venkataramani and Additional SolicitorGeneral N. Venkataraman, whether it was fair to compel the State to withdraw a suit filed in exercise of its right to approach the Supreme Court directly against the Centre under Article 131 of the Constitution.
“They [Kerala] cannot have it both ways. It was not to twist somebody’s arms that the condition of withdrawal of the suit was imposed,” Mr. Venkataramani countered.
Justice Kant observed that by asking the State to withdraw its suit, the Union government was actually asking the Supreme Court not to judicially review the issue. The suit, Justice Kant noted, was the “first of its kind”. “We would like to hear the issue. We want to find a structured solution for it. If you both can resolve the immediate emergency, there will be time for the court to hear the suit,” Justice Kant told both sides.
Mr. Sibal said the Centre could even take back the money the next year if it found that the allocation was incorrect, but the need of the State was dire now. Mr. Venkataramani said the State cannot create a “mess” through its “financial imprudence and mismanagement” and then come to the Supreme Court with a suit, claiming that the Centre should endorse its actions.
The AttorneyGeneral said the first thing to be looked into would be whether the suit was maintainable and whether the top court could ultimately provide any relief in a matter of pure fiscal policy. “You [Kerala] cannot go on a freewheeling borrowing and then accuse the Centre in court of borrowing recklessly,” Mr. Venkataramani contended.
“There is a trust deficit between the Centre and the State, both constitutional authorities,” Justice Kant observed.
Mr. Sibal said the suit raised questions about the handling of the finance of the country. “The finance of the country is partly handled by the Union and partly by the States, and there are misgivings at both ends,” he said. Mr. Sibal said the Union cannot control the State budget. “A State budget is tailormade to the needs of the people of the State. The financial landscape is as diverse as the political and cultural landscape. Kerala invests in human capital, which is the State’s ultimate source of progress,” he said.