Agencies
new delhi, Jan 14:Aam Aadmi Party, which has been on a constant high ever since the December Assembly elections, may just lose out on its stand to withdraw Delhi government support to foreign investment in multi-brand retail. While there are chances that the Centre may have its way on letting Delhi remain a destination for foreign supermarkets, the possibility of the AAP government falling over the retail issue is not being ruled out either.
But ahead of general elections, it will have to be a political call by the Centre to oppose AAP on this matter, especially as job loss is the main bogey being raised against foreign money in multi-brand retail .
Constitution expert Subhash Kashyap told Business Standard that Delhi is between a state and a centrally administered entity. “So,if there’s a conflict between the Union government and Delhi government, even if the matter pertains to the state list, Union law will prevail,” he said. However, in the case of states in a similar situation, state law persists.
“If it is an executive decision (which the retail policy was), executive powers (of the Centre) are co-extensive (having same limits or scope) with legislative powers,” Kashyap added with reference to a conflict situation. When specifically asked about the Delhi government’s stand on retail FDI, Kashyap indicated that “legislative power of the Union government will prevail over Delhi government’s.”
However, Kashyap pointed out that he was only talking about the constitutional position and that ultimately the Centre would take a political decision on the matter.
A source in the government said DIPP, under the Commerce and Industry Ministry, is likely to consult the Ministry of Home Affairs, which is responsible for Delhi and which handles Centre-State relations. MHA in turn may consult the Law Ministry on how to proceed. Like Kashyap, this official also said, “Its clear that the Centre has overriding powers in the case of union territories which is what Delhi is and the question is whether it will decide to exercise those powers.”
A possibility that is being talked about in the corridors of power linked to the retail issue is that Congress may withdraw its support to AAP in Delhi, which could lead to defeat of government when Delhi budget has to be passed through a vote in the Assembly.
Defeat of money bill means the government will have to resign. But, a no-confidence motion is ruled out as it cannot be brought in the same session twice, experts said. As AAP did not have enough seats in the Assembly polls, Congress is supporting it from the outside in Delhi. “It’s a most intriguing test case,” an official said.
Diljeet Titus, founding partner of Titus & Co, a law firm handling many foreign retail brands’ entry into the country, said,”if the Centre chooses to exert itself against the Delhi government stand, Arvind Kejriwal-led AAP will have no say.” |
