At the outset the CJI refused the plea of senior counsel Shyam Divan to defer the hearing till July, as the government formation in Karnataka is yet to take place.
The court also directed the Centre to file a modified scheme before it on Thursday.
"All the states concerned are making submissions to the draft scheme".
With regard to a clause that stated the Centre could issue instructions from time to time, the SC asked the Centre to clarify that it referred to the functioning of the scheme and not the sharing of the river water.
While Tamil Nadu has insisted on calling the scheme the Cauvery Management Board, the Centre maintained that it was fine with any nomenclature- Board, Authority or Committee.
The CMB would be headquartered in Delhi while the office of the regulatory authority would be in Bengaluru.
The fluid political situation in Karnataka found an echo in the Supreme Court during the hearing on the draft Cauvery Management Scheme when the state sought time till July as the process of government formation was on. On February 16, the Supreme Court reduced the quantity of water Karnataka was asked to supply to Tamil Nadu by 14.75 tmc (thousand million cubic litres).
The 2007 Cauvery Water Tribunal Award was modified and reaffirmed by the top court by its February 16 verdict.