Dividing APSFC assets and liabilities between TS and AP again hits a snag


TS says it has insufficient representation on the board that approved the split plans

TS says it has insufficient representation on the board that approved the split plans

The division of the former Andhra Pradesh State Finance Corporation (APSFC) between the two Telugu states has again hit a snag with the Telangana government reiterating that the state does not have adequate representation on the APSFC board who approved the division of the company.

The state government blamed the AP government for approaching the court regarding a land dispute in Gajularamaram on which the court ordered standstill. “The AP government repeatedly claims there is Telangana representation on the board. Let the Financial Services Department call a board meeting and verify the issue,” a senior official said. The issue was discussed in detail during the recent virtual meeting convened by the Ministry of Interior with representatives of the two states.

The Telangana government claimed that it had rescinded the allotment of 277 acres of land allocated as equity as it had not been used and remained vacant. The state claimed that the law specified division of the headquarters based on population ratio and that the Nanakramguda building currently shared by the two states should not be treated as part of the headquarters.

The AP government, however, maintained that the land had been donated by the former government as its equity stake in APSFC. The land allotment was overturned after the bifurcation affecting equity and as a result APSFC went to the High Court. The AP government representative argued that the splitting of APSFC and the land dispute were two different issues and therefore the splitting plan should be approved by the Ministry of Financial Services under Section 70 of the AP Reorganization Act.

The Ministry of Financial Services had asked the AP government if the reorganization plan could be revised, to which the latter replied that it was not necessary. The Union Department had requested comments from the Telangana government on the matter, after which the matter would be taken up with the Additional Solicitor General for his comments.

Home Ministry Joint Secretary Ashish Kumar said the issue will be taken up after the Telangana government submits its views and obtains the opinion of an additional solicitor general. “The matter would be reviewed at the MHA and discussed with the two state governments on the basis of which the future action plan will be developed,” the official said.


Comments are closed.