Daijiworld Media Network – New Delhi

New Delhi, May 21: The Supreme Court on Wednesday came down heavily on the Finance Ministry while hearing a matter related to the 2023 write-off of additional tier-1 (AT-1) bonds worth Rs 8,415 crore.

A bench headed by Justice Dipankar Datta directed Solicitor General Tushar Mehta to produce the Cabinet resolution, minutes of the meeting and all related documents on the basis of which the decision to write off the bonds was taken.

The court asked the Centre to place the Cabinet records before it by 3 pm on Thursday.

The bench also sought complete details regarding the Cabinet meeting, including the applicable rules, quorum requirements and the names of ministers who were present when the decision was approved.

“Satisfy our conscience. Tell us if there was a proper Cabinet meeting. If not, then you will invite an order from us,” Justice Datta told the Solicitor General during the hearing.

The court further remarked that the government should carefully consider its stand and decide whether it wished to continue with the appeal or withdraw it.

“You are the second senior-most law officer of the court. You will advise your client properly whether you would like an order from the court or would like to withdraw your appeal,” the bench observed.

In response, Mehta submitted that he would first place the relevant documents before the court and then allow the bench to take a view on the matter.

The hearing also saw the court question whether Cabinet documents could be withheld from judicial scrutiny.

“Is there any immunity that the court cannot see the file?” Justice Datta asked after the Solicitor General argued that the Department of Financial Services under the Finance Ministry had communicated the Cabinet’s decision to the Reserve Bank of India.

The case relates to the controversial write-off of AT-1 bonds, which had triggered concerns among investors and financial institutions following the government’s decision in 2023.