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The Plachimada Coca-Cola Victims Relief and Compensation Claims Special Tribunal Bill, 2011 was passed by the Kerala Legislative Assembly on 24 February 2011. The Bill provides for the establishment of a special tribunal to settle disputes between the local residents and the Hindustan Coca Cola Company in Plachimada for recovery of compensation for damages caused to individuals, property and the environment by the company. The Bill is reserved for the assent of the President of India. In the meantime, the central government has sought clarifications on the Kerala government’s competence under the Constitution to adopt the Bill. The major issue is the perceived inconsistency between the Bill and some of the central environmental laws. Thus, the constitutional validity of the Bill is in doubt. In this background, this paper examines the issue of legislative competence of the Kerala government to adopt the Bill.