The letter-spree to the A.P. State Council of Higher Education (APSCHE) from various banks continued on freezing the bank accounts as requested by the Telangana State Council of Higher Education (TSCHE).
Andhra Bank was the first one to send a letter to APSCHE two days ago, while other banks like Canara Bank, State Bank of India and State Bank of Hyderabad that maintain the deposits and cash of the council, have also sent similar letters. The banks informed the officials that the TSCHE has requested them to freeze the accounts and sought APSCHE’s opinion. However, the APSCHE questioned the banks’ authority to freeze accounts.
About Rs. 120 crore worth deposits are in various branches of these banks of which Rs. 50 crore are fixed deposits while another Rs. 60 crore are in the form of welfare fund related to employees including their loans, medial allowances, pensions and others. Some cash is also available in various banks for day-to-day transactions.
The APSCHE officials claim that TSCHE officials cannot force banks to freeze their accounts.
“We gave them office space, vehicles and also employees unofficially to work with them despite the law not permitting so. Instead of confrontation they should write to the Government to bifurcate the employees and assets through a nodal officer,” an official argued.
“But while dealing with money we have to be extremely careful,” he said. Officials also blamed the Central government for its “failure” to intervene. An official said the law says that division of employees and assets has to be done in 58:42 ratio for AP and Telangana through a nodal officer.
TSCHE, however, is firm on its view and its officials argue that they have been functioning without money for the last few months and cannot depend on APSCHE for every disbursal. “It’s our money as well,” an official said. Meanwhile, the AP Minister for HRD, Ganta Srinivasa Rao reacted strongly on the issue in Vishakapatnam. He said the TSCHE asking the Andhra Bank to freeze Rs. 120 crore in APSCHE’s accounts is another case of Telangana raking up a controversy over every issue.
Banks’ letters to APSCHE on freezing accounts the trigger
