In a rare development, the Andhra Pradesh high court, which has stalled several policy decisions of the YSR Congress party government led by chief minister Y S Jagan Mohan Reddy for the last three years, has refused to interfere in its latest decision to raise financial resources through liquor bonds.
The high court was reacting to a petition filed by rebel YSRC MP from Narasapuram parliamentary constituency Kanumuru Raghu Ramakrishna Raju, challenging the state government’s decision to go in for borrowings showing special margin being accrued to AP State Beverages Corporation Limited through liquor sales.
Strongly objecting to Raju’s public interesting litigation petition (PIL), the high court asked his locus standi in questioning the financial matters of the state government.
“Who are you to question how the government should mobilise resources and how to spend?” the court asked.
It pointed out that the government has clearly stated that it is going in for borrowings to implement welfare schemes.
“It appears the petitioner wants to stop the welfare schemes and push the state into financial troubles,” the high court bench said.
Raju tried to explain that his intention was not to stop the welfare schemes but to question the Jagan government’s attempt to raise money through unconstitutional methods.
“When the government goes against the norms laid down in the Constitution, the court can interfere,” he said.
The court, however, said it cannot interfere in the financial management of the state government, including borrowings and debt servicing, as it was the issue that would be taken care of by the borrower and the lender.
“If there are any irregularities in state finances, there are institutions like Reserve Bank of India and Comptroller and Auditor General of India which will monitor everything,” the high court said, adding that the courts cannot run the government and dictate the budget implementation.
