Bifurcation Act: State fights for right definition of ‘HQ’

Assets part of premises of principal office also divisible, it says

August 07, 2017 01:02 am | Updated 01:02 am IST - VIJAYAWADA

After fighting for some two years for proper definition of headquarters, Andhra Pradesh received a setback when the Centre asserted that only headquarters could be bifurcated between the two States and not the other offices of any institution.

The AP government is, now, moving heaven and earth to convince the Union government that its definition would affect the interests of the State. The government has sent alternative proposals to the Union government and the Sheela Bhide Committee to ensure that it would get its rightful share. The government also wants the Centre to correct the anomaly arising out of the definition.

The State government is now arguing that if there is only a common facility such as one workshop, guest house or training centre etc., such units shall form part of the headquarters and hence divisible on population ratio. It is also clarified that the headquarters would be coterminous with the principal office of the building. “Therefore, all assets which are part of the premises of the principal office are also divisible.”

According to information, Chief Secretary Dinesh Kumar recently reviewed the issues relating to Schedule IX and X institutions listed out in the AP Reorganisation Act. The setback and the alternative proposal also came up for discussion, sources said.

Apex court judgment

“The government is contemplating asking the Committee to add up the values of all assets and liabilities, including operational units and headquarters assets, and then workout proportionate shares of each State out of the total value on population,” said a senior official, who did not want to be quoted.

The AP government is also banking on the Supreme Court judgment with regard to the AP State Council of Higher Education. The judgment says: “It is natural that when an existing State if bifurcated to form two new States, there must be an equitable bifurcation of the assets and liabilities of the statutory bodies among the two successor States as well, to ensure welfare of the public at large residing within these territories.”

The AP government is seeking its share in all the offices, including the headquarters of the institutions listed in Schedule IX in the common capital.

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