HC to hear plea on privatisation of 5,100 TSRTC permits


Hearing on sharing of assets of APSRTC posted for Monday

Extensive arguments were held on the point of whether the State government should take the Centre’s approval or not to share assets and liabilities of the undivided Andhra Pradesh State Road Transport Corporation in Telangana High Court on Wednesday.

Advocate General B.S. Prasad contended that there was no requirement of the Centre’s consent to claim share in the assets of the APSRTC since the A.P. Reorganisation Act vested all powers in the State to reconstitute or reorganise a corporation.

However, the Division Bench comprising Chief Justice Raghvendra Singh Chauhan and Justice A. Abhishek Reddy observed that despite those powers, it was binding on the State to secure Centre’s approval.

“Under Section 47 (a) of the A.P. Reorganisation Act, it is not mandatory for the State to secure Centre’s approval to share assets and liabilities of the undivided APSRTC, the Centre has no role to play in division of such assets,” the AG said. He said the Telangana government has already informed the Centre about its scheme to share assets and liabilities of the APSRTC.

“Informing is not equal to taking formal approval. Formal approval requires certain steps,” the CJ observed. But the State has powers to supersede a corporation’s supervisory power. “Even that power of the State is limited,” the Bench said.

With senior counsel D. Prakash Reddy appearing for the TSRTC employees’ unions seeking time for further arguments on personal grounds, the Bench posted the hearing to Monday. However, it would hear on Thursday the PIL challenging the Cabinet decision to privatise 5,100 permits of the TSRTC. At the request of the counsel, the Bench extended the stay on Cabinet decision till Thursday.

Professor P.L. Vishweshwar Rao of Telangana Democratic Front, who filed the PIL questioning the privatisation of TSRTC, said he would move a lunch motion on the “suicide of an RTC worker in Mahabubabad holding Telangana Chief Minister responsible for his death” on Thursday.

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Printable version | Dec 14, 2019 2:25:53 AM | https://www.thehindu.com/news/cities/Hyderabad/hc-to-hear-plea-on-privatisation-of-5100-tsrtc-permits/article29966054.ece

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