Financial crisis: Kerala awaits favourable interim order from SC

NEW DELHI: The Supreme Court has reserved the verdict on Kerala's plea seeking a loan approval of at least Rs 10,000 crore before the end of the financial year on March 31. The court can issue an interim order even though it is a 'Holi' holiday from today to March 31.

The hearing was considered by a bench comprising Justices Suryakant and KV Viswanathan. Advocate Kapil Sibal, appearing for the state government, questioned the central stand of Kerala's revenue income being negative rate despite an increase of 23 per cent. "The figures given by the Centre are wrong. Kerala is trying to take a loan for the amount it is entitled to. The state did not expect such a negative stance from the Centre in the federal structure", Sibal told court.

However, Additional Solicitor General N Venkataraman, appearing for the Centre, rejected Kerala's contention that it was asking for what it was entitled to as per the recommendations of the 15th Finance Commission.