Kerala has filed a suit in the Supreme Court accusing the Centre of violating the federal structure of governance and causing “severe damage to the economy of a small State with meagre resources” by interfering with its finances.
The suit said a State, in a federal system of governance, had the exclusive power to regulate its finance through preparation and management of its budget and borrowings.
The State, represented by advocate C.K. Sasi, contended that recent actions, amendments and executive orders by the Centre were calculated to reduce Kerala to a state of penury.
