Senior counsel Kapil Sibal argued that the Centre is trying to impose conditions that could control the state's expenditures, which would violate the principles of federalism.
Supreme Court of India. (Wikimedia)
Kerala on Wednesday rejected the Centre’s offer to borrow an additional ₹5,000 crore in the current financial year as a one-time measure, saying such a small amount “will not take us anywhere”. Kerala demanded a Supreme Court directive to the Centre to lift borrowing curbs and immediately release ₹19,000 crore it owes the state. Next hearing is on 21 March.