New Delhi: Setback for Kerala in the Supreme Court in the Borrowing Limit case. In a ruling, the apex court rejected Kerala’s request to allow more borrowing as interim relief for the financial year 2023-24. A bench comprising Justice Suryakant and K. Viswanathan rejected Kerala’s demand, stating that the court has already made sufficient arrangements regarding the state’s financial needs.
At the same time, the Supreme Court referred the main petition filed by Kerala to the constitutional bench, which was a setback. The court was also unwilling to entertain Kerala’s request for an interim order. It stated that it would examine whether the state has a limit on borrowing from outside and the extent of control the center has over this.
The court referred the main plea regarding each state’s borrowing limit to a five-judge bench. Additionally, the Supreme Court did not issue any order regarding Kerala’s demand for the immediate release of Rs 10,000 crore.
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