The stalemate over the apportionment of assets and liabilities between Telangana and Andhra Pradesh continues.
The two successor States are at loggerheads over division of institutions that are not listed in the A.P. Reorganisation Act-2014. There are at least 10 institutions that did not find a mention in the Act, including the Serifed (Federation of Sericulture and Silkweavers’ Cooperative Societies) and Construction Workers’ Welfare Board under the Labour Department and others.
The Andhra Pradesh government has been insisting that the division of assets and liabilities of at least 10 of these institutions be made on the basis of Section 64 of the Act. The section specifies that the burden of any asset or liability of the erstwhile united State not dealt with under the provisions of the Act should pass on to Andhra Pradesh subject to such financial adjustment as might be agreed upon between the two States.
The Telangana government is, however, contending that the apportionment of these institutions should be done under the provisions of Section 68 read with Section 53 of the Act.
The provisions mandate that the assets and liabilities relating to any commercial or industrial undertaking of the erstwhile State, which were exclusively located in or its operations confined to a local area, should pass on to the State in which the area was included irrespective of the location of its headquarters.
A residuary section
The companies and corporations specified in the Schedule IX of the Act should continue to function in those areas where they were functioning. “Section 64 is a residuary section and it cannot be applied for apportionment of assets and liabilities of these institutions,” a senior official said. The Telangana government contended that Part VI of the Act comprising Section 47, 48 and 49 contain clear provision about the division of assets, liabilities, land and goods, and cash balances between the two States. “These provisions will be applicable to these institutions if they are included in the Act,” the official said. The Home Ministry was accordingly directed to examine the institutions not listed in the Act and see if these were similar to the institutions listed in Schedule IX or X. The Union Home Secretary said once the examination was completed, the issue could be discussed in the subsequent meeting thereafter.
