SC suggests Centre to give special package to Kerala by March 31

The Supreme Court on Tuesday suggested the Centre to be liberal and give a one-time package as a special case to Kerala, subject to harsher conditions than other states.

A bench of justices Surya Kant and K V Viswanathan’s suggestions came while dealing with the matter relating to Kerala’s plea against Centre over financial matters.

The court remarked to the Centre that they can be slightly liberal, give a one-time package as a special case and apply more rigid conditions in future budgets.

The court also suggested giving the special package to Kerala by March 31 subject to harsher conditions than other States. “For the existing States you will be liberal next time,” the court remarked.

Senior advocate Kapil Sibal mentioned Kerala’s suit before the Supreme Court on Tuesday and apprised the court that Centre is not releasing any money to the tune of 19000 crore.

The court suggested the Centre and Kerala to try and work out.

The court said that it will hear the matter tomorrow.

Earlier the Supreme Court had directed the Kerala government to hold a meeting with Centre and state officials to resolve the financial issues arising between them.

Earlier in its affidavit, the Kerala Government said that the Central Government accounts for approximately 60 per cent of the total debt or outstanding liabilities of India.

In an affidavit, the Kerala Government said that the Centre can’t control the debt of state and the justification put forth by the Union Government to control the borrowings of the Kerala State are fallacious, exaggerated and unjustified.

Kerala’s financial health and debt situation have attracted adverse observations from successive Finance Commissions (12th, 14th and 15th) as well as the CAG.

The top court remarked to the Centre that they can be slightly liberal, and give a one-time package as a special case