HC reserves judgement on ADB loan issue

Kochi, Mar 7 (UNI) A Division Bench of Kerala High Court today reserved judgement on a batch of writ petitions filed by the Anti-Asian Developmental Bank (ADB) Loan Committee.

The petitioners contended that the agreement between the Kerala government and ADB was detrimental to the interests of the state.

The Bench comprising acting Chief Justice K S Radhakrishnan and Justice M N Krishnan reserved judgement after hearing the petitioners.

The counsel for the petitioners submitted that they were not against availing loan for the developmental activities but were only challenging the manner in which the government took the decision to avail a loan from the ADB.

Advocate General Sudhakara Prasad who appeared for the state government contended that the agreement was signed after complying to all procedural formalities.

He submitted that the Project, which was included in the 2006-2007 budget, was approved by the Cabinet in May 2005 and a GO was also issued on May 13, 2005.

He also contended that the Centre through a fax message dated November 30, 2006 had fixed the date of signing of agreement on December 12, 2006 and the state Cabinet on March two, 2007 had ratified the action of signing of agreement.

UNI