RBI Advised by the Ministry of Finance, Government of India to Reverse the Deductions Made by it of Rs. 1274.21 Crores from the Principal Account of the State of Telengana in Response to the Income Tax Notice as the same is not in Consonance with the Principle of Co-Operative Federalism; RBI also advised to keep a Note that Money from the Consolidated Fund of any State shall be Transferred/Withdrawn only after following the Constitutional and Legal Requirements.

RBI Advised by the Ministry of Finance, Government of India to Reverse the Deductions Made by it of Rs. 1274.21 Crores from the Principal Account of the State of Telengana in Response to the Income Tax Notice as the same is not in Consonance with the Principle of Co-Operative Federalism;