State govt bound by Constitution, cannot discriminate between castes for setting up financial corporations: Karnataka High Court

The Karnataka High Court on Monday questioned the rationale of the State government in giving priority to few communities in setting up financial corporations..The Court was hearing a batch of PILs questioning the legality of corporations formed by the State, for the benefit of individual castes, communities or religions..A Division Bench of Chief Justice Abhay Shreeniwas Oka and Justice Suraj Govindaraj,“Why only these castes are chosen? What is the basis of the priority? Why these communities are chosen…..Is there any policy for choosing the caste of the community?”.Senior Advocate Ashok Haranhalli today appeared for the caste-based financial corporations, Karnataka Maratha Development Authority, Karnataka Aryavysya Community Development Corporation, Karnataka Vishwakarma Communities Development Corporation Limited, Karnataka State Christian Development Board, Karnataka Brahmin Development Board.Harnahalli argued that depending on the budgetary allocation, financial corporations are set up for specific castes.Further, it was argued that the State government is establishing these corporations in a phased manner..Hearing this, the Court said that the State cannot discriminate between castes for setting up financial corporations. “Tomorrow the state says they have 1000 crores and they say it for only 4 corporations. Can the State do that? State is bound by the Constitution, State cannot discriminate (between castes for setting up financial corporations)."To this, Haranhalli said that there is no question of discrimination here.It was contended that the mere creation of a corporation cannot be found fault with..Additionally, it was pointed out that the present petitions do not point out which section of public interest is affected. “They do not seek similar benefits to castes and communities”.Haranhalli also questioned the maintainability of the instant petitions.“These are not matters which can be made susceptible under judicial purview. It is for the legislature to decide what funds to be given to which community in a particular financial year, depending on the budget…”.It was argued that any interference with the decision of the government in setting up corporations will be interference with the Appropriation Act.Supreme Court judgments were also relied upon by Haranhalli in order to strengthen his arguments. Senior Advocate Professor Ravivarma Kumar will reply to these contentions on the next date..Is it not discriminatory for State to set up financial corporations for economically weaker sections of only two castes: Karnataka High Court .Earlier, the Court had castigated the State government for its decision to confine formation of financial corporations for weaker sections to two castes alone..In February, Senior Advocate Ravivarma Kumar, appearing for one of the petitioners had argued that the State government had incorporated various cast-based corporations to secure votes for the by-elections.The matter is scheduled for hearing again on July 15.