The division of the erstwhile Andhra Pradesh State Finance Corporation (APSFC) between the two Telugu States has hit a roadblock again with the Telangana Government reiterating that the State did not have adequate representation in the APSFC board that approved the division of the corporation.
The State Government faulted the AP Government for approaching the court regarding land dispute at Gajularamaram on which the court had ordered status quo. “AP Government claims time and again that there is representation of Telangana on the board. Let the Department of Financial Services convene a meeting of the board and verify the issue,” a senior official said. The issue was discussed elaborately during the recent virtual meeting convened by the Ministry of Home Affairs with representatives of the two States.
The Telangana Government asserted that it had cancelled the allotment of 277 acres land allotted as equity as it had not been utilised and lying vacant. The State asserted that the Act specified division of headquarters on the population ratio and the building at Nanakramguda currently being shared by the two States should not be treated as part of the head office.
The AP Government however contended that the land was given by the erstwhile government as their share of equity in the APSFC. The land allotment was cancelled post bifurcation affecting the equity and therefore, APSFC went to the High Court. AP Government’s representative argued that division of APSFC and dispute of land were two different issues and therefore, the demerger plan should be approved by the Department of Financial Services under Section 70 of the AP Reorganisation Act.
The Department of Financial Services had asked the AP Government whether the scheme of reorganisation could be revised for which the latter replied that it was not required. The Union department had requested Telangana Government’s comments on the issue after which the issue would be taken up with Additional Solicitor General for his comments.
Ministry of Home Affairs joint secretary Ashish Kumar said the issue would be taken up after Telangana government furnished its views and opinion of additional Solicitor General were obtained. “The issue would be examined at the MHA and taken up with both the State Governments based on which the future course of action will be evolved,” the official said.
