HC declines to stay agreement signed between Govt, ADB

Kochi, Mar 8 (UNI) A Division Bench of the Kerala High Court today declined to stay an agreement signed between the state government and Asian Development Bank (ADB) last year.

The Bench, comprising acting Chief Justice K S Radhakrishnan and Justice M N Krishnan, however made strong observations on the way in which the government entered into the agreement with the ADB.

Hearing two Public Interest Litigations (PIL) filed by the Anti-ADB Loan Committee and an another organisation, seeking a stay on the implementation of the agreement, the Court issued notice to the Centre and state government.

While observing that the ADB loan was being utilised to improve the urban infrastructure, water supply, sewerage and sanitary facilities, the Court said the government should have conducted a study of economic costs and beneficial analysis before entering into such an agreement.

It further added that the state Cabinet should have been taken into confidence before the resident commissioner was authorised to sign the loan agreement.

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