THIRUVANANTHAPURAM: Kerala with financial loss and loss of reputation due to the case in the Supreme Court against the Centre's control on borrowing limit.

Kapil Sibal was allowed an additional Rs 15.50 lakh to plead the case. This is the fee for appearing on February 13. The Advocate General had given a letter to pay the amount. Kapil Sibal has been paid Rs 90.50 lakhs so far and 1.60 crores is due. This amount is for legal advice and court appearances. The total expenditure so far is 2.50 crores. As the case is referred to the Constitution Bench, the lawyer will have to be paid more. Kapil Sibal has to be paid Rs 15.50 lakh for one appearance.

Kerala argued that it was wrong for the Centre to restrict borrowing. It was not accepted by the Supreme Court and the court accepted the central argument that there was financial mismanagement in Kerala. It was a setback for the state in the case and it was not allowed to take more loans. In the last month of the last financial year, Kerala suffered as it could not even pay its salaries. Kerala approached the court hoping for relief. It did not succeed and Kerala had to face financial losses as well.

Also, the sanction for a loan of Rs 13,600 crore due to Kerala was delayed by the Centre due to Kerala filing the case. On the grounds of legal advice, Kerala rejected the central proposal for a temporary loan of Rs 5000 crore. After taking the case to the Constitution Bench, Kerala reached the impasse of having to approach the Centre for loan approval of 5000 crores. The Center did not give it and only sanctioned a loan of Rs 3000 crore. This was also a setback. The hope is now on the Constitution Bench to overcome the credit control.