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2009 (3) TMI 563 - HIGH COURT OF BOMBAYMarket Stabilization Scheme - Held that:- The proceeds of the scheme, though they are kept immobilized in a separate non-interest bearing account, do not be outside the Consolidated Fund. The borrowings under the Market Stabilization Scheme are stated to be fiscal deficit neutral as the amounts raised are not used for the normal expenditure of the Government, but are kept immobilized in a separate non-interest bearing account with the Reserve Bank, but as part of the Consolidated Fund of India. The interest paid on such borrowings do add to the fiscal, deficit as the expenditure of the Government of India. The Memorandum of Understanding that has been entered into between the bank and the Central Government is not referable either to the provisions of sub-section (1) or sub-section (2) of section 21. The relief that has been sought is a direction to the effect that the Comptroller and Auditor General should be directed to estimate the profit and loss to the country in the light of the depletion in the Currency and Gold Revaluation Account of the Reserve Bank and the interest paid on the Scheme over the years and to file a detailed report before this Court or to the President of India for laying before the House of Parliament. We do not consider it appropriate that any such direction should be issued by this Court in the exercise of its jurisdiction under Article 226 of the Constitution, particularly in the context of a public interest petition. Appeal dismissed.
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