centre state dispute

Querist : Anonymous (Querist) 23 July 2011 This query is : Open
does state has the right to ask for the rights of regulation of transmission, supply and distribution natural resources like natural gas produced exclusively in their areas or legislatively regulate under list 2, entry 25 of 7th schedule.
Can state challenge central arbitarary and Mala fide intentions for regulating this control indirectly.
whether the state are sovereign entities entitled to use natural resources within their territorial limits.

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