India Court Seeks Documents on Maharashtra Government Formation

India’s Supreme Court asked for documents to show how an alliance in Maharashtra was formed to create a government.

(Bloomberg) -- India’s Supreme Court asked for documents to show how an alliance in a western state was formed to create a government, after Prime Minister Narendra Modi’s ruling party unexpectedly tied up with a rival to take control of Maharashtra.

A panel of judges led by N.V. Ramana demanded that the federal government submit the papers by Monday morning, when hearing pleas for a vote on the floor of the state assembly would resume. The court said it would make a decision after studying the documents.

Modi’s Bharatiya Janata Party agreed to a surprise alliance with a leader of the Nationalist Congress Party, Ajit Pawar, to form the Maharashtra government in the early hours of Saturday. NCP’s chief Sharad Pawar later said his nephew Ajit’s decision to collaborate with BJP was a personal one and didn’t have support of the party.

The turn of events foiled efforts of NCP, the Congress party and BJP’s estranged ally Shiv Sena to form the next government in the state, forcing them to challenge the manner in which the government was sworn in.

Maharashtra capital Mumbai, a city of 18 million people, is home to companies such as Reliance Industries Ltd. and Tata Group, India’s two main stock markets and the country’s film industry. It also has some of India’s biggest slums. Control of the nation’s second-most populous state would help Modi implement his push to attract foreign investment and revitalize the nation’s manufacturing base and revive the slowing economy.

©2019 Bloomberg L.P.

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