Reacting sharply to the Gujarat high court order upholding the governor's stand on appointment of Lokayukta in the state, BJP on Wednesday termed the judgment as "a setback to federalism". The party also said what happened in Gujarat was bound to happen in other states too and said it would take the issue to the Supreme Court. "The divided judgment of the Gujarat High Court is a setback to federalism. The governor is a nominee of the central government," senior party leader Arun Jaitley said.