AP looking at a windfall of assets close to Rs 70,000 crs post SC judgement

Buoyed by Supreme Court judgement over sharing of assets belonging to the education department and the state council of higher education between AP and Telangana, the Andhra Pradesh government has decided to claim its share in all institutions listed in the Schedules IX and X of the AP Reorganisation Act, 2014.

The claim, if sustained, would fetch the AP government assets worth over Rs 70,000 crore. As per the state government’s estimate there are more than 120 institutions listed in Schedule IX and X and almost all of them were taken over by the Telangana government.

The Supreme Court had allowed the claim of AP on even bank balance of the higher education council, which runs into crores of rupees.As per the bank statement, there are about Rs 115.88 crore worth fixed deposits and Rs 18.41crore bank balance of the erstwhile AP State Council of Higher Education. The apex court said the money should be shared between the two states in the ratio of 58:42. Also, there is about Rs 3800 crore in the form of fixed deposits belonging to 120 institutions.

“If the same ratio is followed in other institutions listed in the two Schedules, the AP government is likely to get more than Rs 70,000 crore in the form of bank deposits and value of immovable assets. This is the single biggest achievement of the TDP go vernment,“ says HRD minister Ganta Srinivas Rao .

The AP government is happy with the reference made by Supreme Court to the Section 47 of the Act, which detailed about the apportionment of assets and liabilities of the united AP. The Telangana govern ment had taken over all institutions located in Hyderabad city by citing Section 75 that explained the geographical location of the assets and the ownership. Striking down Telangana`s argument, the apex court made it clear that the sharing must be done on the basis of Section 47. The Section also explained that in case of dispute regarding the amount of financial assets and liabilities it should be settled through mutual agreement, failing which by order of the Central Government on the advice of the Comptroller and AuditorGeneral of India.

The affidavit filed by the Solicitor General of India before the Supreme Court has clarified the stand of the Central government. This has opened a whole lot of oppor tunities for AP government as it applies to all institutions established before the appointed day , i.e June 2, 2014.

The AP government has estimated that there are about Rs 16,000 crore fixed deposits in different banks in the accounts belonging to public sector undertakings, corporations, societies, and cooperative establishments. The finance department is gearing up to make a claim over these fixed deposits as the amount was accrued before the bifurcation of the state and people of 13 districts of AP had their share in them. Similar claims will be made before the apex court soon as the government has decided to insist on sharing all institutions and their properties in Hyderabad city , a senior official said.

Source: Times of India

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