Karnataka Election: Supreme Court Directs Floor Test Today

The Governor's decision to appoint K.G. Bopaiah as the pro-tem speaker of the Karnataka assmebly ahead of the crucial floor test is likely to be challenged, according to Karnataka Congress' spokesperson Dinesh Gundu Rao. "All options are on the table. We don't want to divert ourselves from tomorrow's proceedings," he said.

Earlier, Congress’ national spokesperson Abhishek Manu Singhvi had also criticised the appointment.

The BJP is ready for a floor test even today, said Seshadri Chari of BJP.

The Supreme Court has called the Bharatiya Janata Party’s bluff that it will form a government without having the needed numbers, said Congress President Rahul Gandhi to the media today.

Former Karnataka Chief Minister Siddaramaiah lauded the order saying that the 15 days time given by Governor Vajubhai Vala was unconstitutional.

The apex court’s direction for a floor test to prove BJP’s majority is too short, said former Attorney General of India Soli Sorabjee. The party should have received at least a week’s time, he said.

Supreme Court directs for floor test in Karnataka Assembly at 4 pm tomorrow, after hearing Congress-JD(S) plea against Karnataka Governor inviting BJP to form government.

Yeddyurappa government not to take any major policy decisions until the floor test is done, directs Supreme Court.

Today’s Supreme Court order, vindicates our stand that Governor Vala acted unconstitutionally, Congress President Rahul Gandhi tweeted. Stopped legally, they (BJP) will now try money & muscle, to steal the mandate, he added.

• Pro tem speaker will conduct the floor test.
• All legislators will be sworn in before the floor test.
• Interim Chief Minister Yeddyurappa cannot take any executive decisions before the floor test.
• Supreme Court will hear Congress-JD(S)'s plea on the Karnataka Governor's decision to invite BJP to form government in 10 weeks.

Lawyer for Congress-JD(S), Abhishek Manu Singhvi said both the parties are ready for a trust vote tomorrow to prove their majority in the Karnataka assembly. However, BJP’s Lawyer Mukul Rohatgi sought more time, according to an ANI report.

It is just a number game, one who enjoys the majority should be invited to form the Govt, says Supreme Court, reports ANI.

The Supreme Court has started hearing on a petition by Janata Dal (Secular) and the Congress Party, which challenged the decision by Karnataka Governor Vajubhai Vala to invite Bharatiya Janata Party's BS Yeddyurappa to form the government. The apex court had yesterday refused to stay the swearing-in ceremony of Yeddyurappa as the state's chief minister.

Kapil Sibal also present at the Supreme Court to argue on behalf of the Congress party, reports ANI.

The Congress today decided to stake claim to form government in Goa where it had emerged as the single largest party in the Assembly polls held last year in a bid to follow the Karnataka example in Goa, ANI reported.

Congress Legislature Party chief Chandrakant Kavlekar said the party will stake claim tomorrow by submitting to Governor Mridula Sinha a formal letter containing signatures of all the 16 party MLAs.

In the Assembly elections held in March last year, the Congress had bagged 17 seats in the 40-member House, falling short of the majority figure by four seats.

Meanwhile, the RJD said it will meet the Bihar Governor at 1 pm tomorrow to demand that the current government in the state be dissolved, ANI reported. The RJD had emerged as the single largest party in the latest assembly election in the state.

The All India Congress Committee General Secretary Ashok Gehlot has issued a letter requesting all Pradesh Congress Committees, leaders and workers to organise state-wide dharnas at state capitals and district headquarters tomorrow to protest against the Karnataka Governor’s decision to invite BJP to form a government in the state, ANI reported.

• I regret the alliance of INC-JDS to form a government despite being rejected by the people of Karnataka.
• We will not wait for 15 days for floor test. Wait till today or tomorrow.
• We are in talks with banks to provide farm loan waiver of Rs 1 lakh. Need 24 hours to finalise the same.
• Have asked Chief Secretary to provide a report on farm loan waiver within 24 hours in order to announce it as soon as possible.

Also Read: Karnataka Moves Closer To Waiving All Farm Loans Up To Rs 1 Lakh

Karnataka Chief Minister was confident that he will be able to prove a majority on the floor of the house. I have been given 15 days but I won’t take so long to prove the majority, Yeddyurappa told reporters in a press briefing.

Senior lawyer Ram Jethmalani moved Supreme Court in his personal capacity against the decision of the Karnataka Governor inviting BJP to form government, reports PTI. Governor's order is a 'gross abuse' of Constitutional power, Jethmalani told Supreme Court. A bench headed by Chief Justic Dipak Misra asked Jethmalani to mention his plea on Friday before the bench which heard the petition by the Congress and JD(S) challenging Governor Vajubhai Vala's decision to invite the BJP to form government in the state.

In a series of tweets, BJP President Amit Shah took on Congress and its chief Rahul Gandhi calling them “opportunists” working for their own gains and not for the welfare of Karnataka.

In his first reaction after BS Yeddyurappa was sworn in as the chief minister of Karnataka, Congress President Rahul Gandhi tweeted that the country will 'mourn the defeat of democracy' as BJP celebrates its 'hollow victory'.

BS Yeddyurappa has been sworn in as the chief minister of Karnataka amidst protests by Congress MLAs outside the Vidhan Soudha.

Preparations are on full swing for BJP’s BS Yeddyurappa to take oath as the chief minister of Karnataka after the Supreme Court refused to stay the proceedings.

After a three hour long hearing the Supreme Court has refused to stay the BJP’s oath taking ceremony on Thursday morning and the consequent government formation in Karnataka.

The matter will continue to be heard on Friday at 10.30am. By which time Attorney General KK Venugopal has been directed to produce the letter written by BJP Karnataka leader BS Yeddyurappa to the governor.

The judges say they are not inclined to defer the swearing in ceremony. Singhvi says he’s not seeking to injunct the governor’s actions, just that the consequences be stayed.

This was followed by a couple of rejoinders. Finally, at 5.15am the bench has begun to dictate its order.

Rohatgi is appearing as counsel for some BJP MLAs. Argues for dismissal of the petitions.

The action of the governor can be right or can be wrong. It can be judicially reviewed but there cannot be injunction against a governor, Rohatgi says. This is the spirit of the constitution and the boundary of the court.

Venugopal says the anti-defection law may not apply if an MLA resigns and joins another political party before he/she is sworn in as an MLA.

The Supreme Court bench terms the argument as preposterous.

Venugopal points out that even if a government is sworn in, that can be reversed if the court wants. He seeks the swearing-in ceremony be deferred.

Arguing for some BJP MLAs, Mukul Rohatgi says the matter should never have been heard at midnight. “This should not have happened.”

Rohatgi was appointed India’s 14th Attorney General by the BJP soon after it won the general elections of 2014. He served till June 2017.

• In Jharkhand, Goa and Uttar Pradesh instances the court advanced the floor test. There's no reason to not do it now.
• In 2018, in Meghalaya the single largest party was Congress. In Manipur, the single largest party was Congress. In Goa, Congress was the largest party but the combination of parties who claimed majority were invited to form government.
• In the Goa case, the Supreme Court upheld the decision that the largest group of post-poll alliance parties be invited to form government and not the single largest party.

The Supreme Court can judicially review the decisions of the Governor, Singhvi argues. He seeks that the swearing in of the BJP government in Karnataka be deferred.

Singhvi also praises the Supreme Court for its decision to hear the matter at this late hour.

With that Singhvi concludes his arguments.

Abhishek Manu Singhvi, appearing for Congress and JD(S), begins arguments. Says the the two parties combined have the support of 117 members of the Karnataka legislative assembly whereas the BJP has 104 MLAs.

Mukul Rohatgi, appearing for some BJP MLAs, counters that no injunction can be sought against the order of the Governor.

Singhvi narrates events of the past two days. Then makes the following points

• Clear unequivocal rule is person with majority is to be invited.
• Moment there is no absolute majority then the rule in sequence of order of preference comes into effect.
• Sarkaria Commission rule is that when there is no absolute majority then the largest pre-poll alliance will be invited. If there is no absolute majority of one party and there is no pre-poll alliance, then the largest group of parties in a post-poll alliance would be invited.
• We are challenging the very act of the Governor of not calling me (Congress and JD(S) to form the government.
• Governor has negated democracy by not calling us.
• It is unheard of that 15 days time is given for proving majority.
• There is only one way in the world to convert a 104 to 111. And you get 15 days for that.
• Inviting a person with 104 MLAs ahead of a person with 116 MLAs and then giving them 15 days is adding insult to injury.
• BJP has only 104 MLAs. They cannot claim majority unless there are some defections.

Also Read: Karnataka Governor Has No Rule Book To Turn To

Attorney General KK Venugopal enters the courtroom shortly after the hearing begins.

In a rare turn of events, the Supreme Court has decided that it will hear the petitions of Congress and JD(S) challenging the Karnataka governor's invitation to BJP to form the government.

Justices AK Sikri, SA Bobde and Ashok Bhushan are scheduled to hear the case at 1.45 am in courtroom number 6.

Senior Congress leader Abhishek Manu Singhvi will lead the alliance’s charge. And Tushar Mehta, Additional Solicitor General will be arguing on behalf of the Union of India.

The Congress has moved the Supreme Court against Karnataka Governor Vajubhai Vala's decision to invite BJP’s Yeddyurappa to form the government in the state and sought an immediate hearing.

Senior Congress leader Abhishek Singhvi said the party has sought a hearing on its petition challenging the Governor's decision tonight itself. “We have filed a petition before the Supreme Court and have urged the registrar to allow hearing on it tonight itself,” Singhvi told newswire agency PTI, adding that an immediate hearing has been sought.

The Raj Bhavan has not sent an official communication yet confirming or denying whether Yeddyurappa has been invited to form the government, according to Congress leader and former union minister Manish Tewari. “This is a highly irregular subversion of all cannons of constitutionalism,” he told BloombergQuint. “If the governor has arrived at a decision, whether right or wrong, it needs to be communicated.”

The fifteen days that the Karnataka governor has given BJP for proving its majority in the house is an "act of bad faith", according to Alok Prasanna Kumar of the Vidhi Centre of Legal Policy.

The governor has officially confirmed that the BJP is lacking in numbers and given fifteen days to stitch that up, said Krishna Prasad, a policy analyst. "Fifteen days is quite shocking. Usually the norm is about a week," Prasad told BloombergQuint. "Frankly, this brings no glory to the office of the governor."

BS Yeddyurappa and the BJP have been invited to form the government in Karnataka. They will have up to fifteen days from when he takes office to prove his majority in a floor test.

There is no confirmation yet if BS Yeddyurappa has been invited to form the government in Karnataka, Gopal Agarwal, a BJP spokesperson, told BloombergQuint. “We are hopeful and we welcome such a decision. We wanted to form our government. We are the largest party and it is in the discretionary power of the governor to do this,” he said.

As the numbers stand, BJP does not have enough numbers to command a majority and form a government. However, the party is confident that some members of Congress and JD(S) will switch sides. “There are so many MLAs within the Congress and JD(S) who are not happy with the alliance and the way politics has moved. There are serious differences between the two parties,” Agarwal said.

What Happens If Yeddyurappa Is Invited?

Even if BS Yeddyurappa is invited to form the government, it doesn't necessarily mean that the Congress-JD(S) alliance has no chance to form a government. "Inviting someone to form the government when the math is not clear is just the first step," according to Alok Prasanna Kumar, a member of the Vidhi Centre for Legal Policy. "The next logical step is to prove a majority in the floor of the house."

Is It Legal?

It won't be unconstitutional for the Karnataka governor to invite Yedyurappa to form the government despite his affiliation to the BJP, according to Kumar. "The point is that the constitution tries to determine how to act in every plausible situation. There is place for the governor to exercise his discretion," he told BloombergQuint.

Senior Congress leader P Chidambaram said that he did not understand why JD(S)' chief ministerial candidate HD Kumaraswamy hasn't been invited to form a government in Karnataka even when its alliance with Congress holds a majority.

Chidambaram added that he had heard the news of Yeddyurappa being invited to form the government but refused to comment on it as he did not have a confirmation yet.

The Karnataka governor Vajubhai Vala has invited the single largest party BJP to form a government in the state led by BS Yeddyurappa, Doordarshan News said on its Twitter handle. That tweet has since been deleted.

The Karnataka governor has assured a delegation of JD(S) members led by their chief ministerial candidate HD Kumaraswamy that he will take decision on who gets to form a government according to the Constitution.

Kumaraswamy added that they will seek legal opinion if the JD(S)-Congress alliance is not allowed to form a government.

Outgoing chief minister Siddaramaiah, in a Twitter post, said he is confident about forming a new government in the state while expressing his gratitude for the election verdict.

Former Karnataka Chief Minister BS Yeddyurappa met Governor Vajubhai Vala to stake claim to form the government in the state. “I have met the governor and sought adequate time to prove my majority in the floor of the house,” Yeddyurappa told reporters.

"If JD(S) allies with the BJP, they are going to suffer the same fate that Peoples Democratic Party (PDP) is suffering in Kashmir. PDP is now extremely unpopular in Kashmir and the Bharatiya Janata Party (BJP) is extremely unpopular in Jammu," Congress Spokesperson Salman Soz told BloombergQuint in an interview.

The next move in Karnataka would be for the governor to satisfy himself on which of two factions command a majority in the house to form a stable government, according to senior advocate Sanjay Hegde. “The single largest party forming the government is the normal rule, but there are always exceptions to the rule,” he told BloombergQuint in an interaction.

He added that in such circumstances it would be “bit of a stretch” to say that the largest party can command a majority.

The governor has to ensure that whoever can form a stable government is chosen and a government is put in place as soon as possible, according to senior advocate Aryama Sundaram. “You have to ask yourself a primary basic question. What is the constitutional mandate? What is the constitutional intention?”

There is no other option, constitutionally, apart from inviting the JD(S)-Congress coalition to form the government, said Congress’ communications chief Randeep Surjewala in a media conference. “That's why we hope that the JD(S) and Congress coalition will welcomed by the Governor, in accordance with the law and Supreme Court's guidelines,” he added.

If the current tally holds, then JD(S) and Congress combined have 114 seats, which is more than the halfway mark.

The Governor of Karnataka Vajubhai Vala will be the point of focus as both factions - the BJP and the Congress-JD(S) coalition - stake claim to form the government.

It is up to the understanding of the governor now to decide who will form the government, Subhash Kashyap, a former general secretary of the Lok Sabha told ANI. “It is up to him if he wants to call the single largest party or a coalition government.”

BJP's chief ministerial candidate BS Yeddyurappa said that he is meeting with Vala at 5 pm. "We should be forming the government as we are the single largest party," he said.

By convention, the governor invites the single-largest party to form the state government. However, in recent cases of the Goa and Meghalaya state elections coalition governments with majority seats have been allowed to stake claim even without a pre-poll alliance.

HD Kumaraswamy, the chief ministerial candidate for JD(S), has also written to the governor seeking to form a government in alliance with the Congress. He too is meeting the governor at 5:30 PM.

Vala has been the Karnataka governor since 2014. Prior to that the BJP member served as a cabinet minister in Gujarat between 1997 and 2012.

Janata Dal (Secular)'s HD Kumaraswamy has written to the Governor of Karnataka for forming a coalition government with Congress.

BJP's chief ministerial candidate BS Yeddyurappa said that the Congress is trying to "grab power" despite being rejected by the people. "People are moving towards Congress mukt Karnataka," he told reporters in a media conference in Bengaluru.

Indian market erased their gains and closed marginally lower after the Congress and Janata Dal (Secular) said that they would join hands to form the government in Karnataka. Investors were expecting a BJP government in the state after it emerged as the single-largest with over 100 seats.

The Janata Dal (Secular) has accepted Congress' offer for a coalition government, according to its leader Danish Ali. The two will jointly go and meet the governor after 5:30 PM, he said.

Outgoing Karnataka chief minister Siddaramaiah has secured a victory in one of the two seats he was contesting from. The win in the Badami constituency was by a very thin margin. He lost by over 36,000 votes in Chamundeshwari to GT Devegowda of the JD(S).

The mandate of the people is against Congress and they cannot change it, Nalin Kohli, BJP Spokesperson, told BloombergQuint. "The writing is on the wall. The vote is against Congress so directly or indirectly the voters have rejected them."

He said that even with Congress and JD(S) joining hands, BJP will have the chance to form the government as it is the single largest party.

How Things Stand

In a turn of events, senior Congress leaders said they will offer full support to Janata Dal (Secular) for forming the government in Karnataka. The JD(S) has accepted its offer, according to Ghulam Nabi Azad of the Congress.

Majority of the people in Karnataka prefer a non-BJP government, Congress’ Rajya Sabha member Rajiv Gowda told BloombergQuint in an interaction. “Congress had more vote share than the BJP. When you add JD(S)' vote share, the lead becomes sizable,” he said.

Here's are the key things that Gowda said:

• Mandate comes when you win a majority.
• In other states like Goa, when BJP did not get a mandate they still managed to go ahead and form a government.
• Congress had more vote share than the BJP. When you add JD(S)' vote share, the lead becomes sizable.
• Majority of people of Karnataka preferred a non-BJP party.
• These are all decisions that will be taken in the next few days.
• As of now we are working towards a coalition.
• Mr Kumaraswamy is still a very popular leader.

Going by the leads tally at 3 PM, a Congress-JD(S) coalition would have 111 seats, while BJP will have 108 seats. That'd be a hung assembly.

BJP’s general secretary Ram Madhav credited the party's performance in Karnataka to the Rastriya Swayamsevak Sangh cadres, who according to him helped "enormously" in swinging the coastal districts.

“BJP's southward march has begun,” he added.

BJP’s performance in coastal Karnataka was key as the region was dominated by Congress in the previous election.

Chief ministerial candidate BS Yeddyurappa won in the Shikaripura constituency by a comfortable margin.

Senior leader M Veerappa Moily said the Karnataka election trends, which point towards a BJP victory, were “quite disappointing”. Congress' loss was on account of “wrong caste management”, he told reporters in New Delhi.

Chief Minister Siddaramaiah had granted religious minority status to the Lingayat community ahead of the assembly elections to woo its voters. Moily said that Congress shouldn't have taken up that issue just before the polls.

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After emerging as the single largest party in Karnataka, the BJP is now set to govern in 21 states in India.

The Parliamentary Board of the Bharatiya Janata Party is set to meet at 6 p.m. at the party headquarters in New Delhi.

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The BJP currently leads on all five seats in the Udupi region where it managed to win only a solitary seat in 2013.

The BJP has also reversed the trend in the Dakshin Kannada region where it won only a single seat in 2013 compared to seven for the Congress. The saffron party currently leads in 7 seats while the Congress has a single lead to its name so far.

One of the biggest factors behind the BJP's strong showing was its performance in regions like Mysuru and Belagavi. The party currently leads in 25 seats this time around in the Mysuru region compared to 6 that it won in 2013.

A similar trend is seen in the Belagavi region where the party leads in 34 out of the 56 seats. It had won only 14 seats in 2013.

Nilesh Shah, Kotak Mahindra AMC

• Markets to use Karnataka outcome to forecast 2019 polls
• Markets want stable, reform-oriented government
• Earnings momentum to drive markets going ahead

Jai Bala, cashthechaos.com

• Market had bottomed out near 9,950
• 11,400 in place for Nifty. Just a question of when

Porinju Veliyath, Equity Intelligence India

• BJP win to boost market sentiment
• Modi win in 2019 important follow-up for economic reforms

Sudip Bandyopadhyay, Group Chairman, Inditrade Capital

• BJP win positive in short-medium term
• State elections don't matter in long-term
• Single party victory positive for investor sentiment

Ajay Srivastava, Dimensions Corporate Finance Services

• Markets happy with stability
• Age of largecaps is here to stay
• Prefer banks, consumer companies in the portfolio

Ajay Bagga, Market Expert

• Can see profit booking towards end of the day
• Expectations were low. Simple majority welcomed strongly
• Would wait and watch for other factors like yields, global cues

Ritesh Jain, BNP Paribas Asset Management

• Need to run a tighter fiscal policy
• Need to ensure lower volatility, stable macros for investors

Vikas Khemani, Edelweiss Securities

• Results in-line with expectations
• Rising crude, interest rates remain a concern
• Long-term fundamentals looking positive

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BJP’s chief ministerial candidate BS Yeddyurappa looks set to win his eighth-term as MLA from Shikaripura. Since his maiden win in 1983, Yeddyurappa has lost from this seat only in 1999. His son, BY Raghavendra is the incumbent MLA from this seat.

JD (S) candidate GT Deve Gowda leads Chief Minister Siddaramaiah by over 17,000 votes in Chamundeshwari, according to ANI.

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All three benchmark indices gained over one percent each as the BJP continued to consolidate its lead in Karnataka. All sectoral indices gained while the India Volatility Index (India VIX) dropped over 11.5 percent.

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The Bharatiya Janata Party crossed the 100-seat mark in the Karnataka Assembly, heading towards the majority mark of 112.

As of 10:30 a.m., the BJP led in 102 seats compared to 64 for the Congress. The JD (S) was ahead in 44 seats while others were ahead in 3 seats out of the 222 seats for which polling took place on Saturday.

Chief Minister Siddaramaiah is facing a tough battle from both his seats. While he is trailing in Chamundeshwari against his one-time associate GT Devegowda of the JD (S), ANI reports that he leads by a slender margin of 160 votes in his other constituency Badami.

As the BJP continues to move closer to the majority mark in Karnataka, the Nifty has scaled the 10,900 mark. The benchmark index has reclaimed this level for the first time since February 2, 2018.

Titan, Power Grid and Tata Steel were among the top Nifty Gainers while all sectoral indices traded with gains.

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After a subdued start, the markets have gained momentum as trends from Karnataka show the Bharatiya Janata Party in the lead. Most sectoral indices are trading with gains. Banks, Metals and Realty stocks are among the top gainers.

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