Order on Funds Transfer a Violation of Treasury Code

• Karnataka State govt alleged executive order on funds transfers from departments to banks against norms of treasury code.
• For any executive order govt needs to take the assembly sanction, but now it is ploy to enforce decisions that could not be revoked latter on.
• Govt came under fire for the move, had to pass its withdrawal but major part of the diverted funds still parked in banks.

Exams Perspective:

1. ECI
2. Model Code of Conduct (MCC)