SC further restrains Puducherry govt from implementing cabinet decisions with financial implications

The Supreme Court Friday extended its earlier order till July 10, restraining the Puducherry government from implementing any cabinet decisions having financial implications.

A vacation bench of justices Deepak Gupta and Surya Kant said that the issue requires to be heard at length and therefore it is listing the plea before a regular bench.

Puducherry government told the apex court that it has taken three cabinet decisions, which include distribution of free rice to all ration card holders, renaming a department and auctioning of a sick factory.

Senior advocate Kapil Sibal, appearing for the Puducherry government, said out of the three decisions taken, free distribution of rice to all ration card holders can be allowed as the scheme has been running for the past ten years.

Solicitor General Tushar Mehta, appearing for Lieutenant Governor Kiran Bedi, said the scheme cannot be allowed as it will be a modification of the earlier order and has a huge financial implication.

He said earlier free rice was distributed to only BPL (below poverty line) card holders but now the Puducherry government has a populist move and wants to give free rice to all ration card holders.

The top court had on June 4 directed the Puducherry government, led by Chief Minister V Narayanasamy who is at loggerheads with Bedi, not to implement any decision, having financial implications, that may be taken at the Cabinet meeting of in the June 7.

The application filed by the Centre and Bedi had sought a direction for restoring the situation prevailing before the April 30 Madras High Court verdict which held that the LG "cannot interfere" in the day-to-day affairs of the elected government in the Union Territory.