The court asked the Centre and Telangana to file their replies in four weeks, giving Andhra Pradesh another two weeks to file its rejoinder.
Published May 12, 2023 | 5:10 PM ⚊ Updated May 12, 2023 | 5:11 PM
A view of a metro train in Hyderabad. Most of the assets to be divided between Telangana and Andhra are in Hyderabad. (Creative Commons)
The Supreme Court on Friday gave a “last chance” to both the Central and the Telangana governments to respond to the Andhra Pradesh government’s plea seeking a “fair, equitable and expeditious division of assets and liabilities” involving institutions or corporations of the erstwhile united Andhra Pradesh between it (Andhra Pradesh) and the bifurcated Telangana under the Andhra Pradesh Reorganisation Act of 2014.
A bench of Justice JK Maheshwari and Justice MM Sundresh gave the Centre and Telangana government four weeks to file their reply and two weeks to Andhra Pradesh to file a rejoinder, if any.
The apex court then posted the matter for hearing in the last week of July on a regular hearing day.
Appearing for Andhra Pradesh, senior advocate Abhishek Manu Singhvi told the bench that notice on the Andhra Pradesh plea was issued on 9 January, 2023, and since then no reply had been filed.
At the outset of the hearing, Justice Maheshwari said that Additional Solicitor General (ASG) KM Nataraj (meaning the Central government) could help in resolving the matter.
As Singhvi said that the matter involved ₹1.42 lakh crore and Telangana was sitting over it, Justice Maheshwari suggested that they could appoint a retired judge to mediate in the matter in the next two months and post the matter for consideration in August.
The bench said that they could list the matter next week on this aspect.
“We take it next week. If mediation can be done. (Then) We will take up the matter in August (with the outcome of the mediation),” the bench said.
However, Singhvi said that mediation will not work and instead suggested arbitration.
At this, the court asked both the Centre and Telangana to file their reply in four weeks, giving another two weeks to Andhra Pradesh to file its rejoinder and posted the matter in the last week of July.
On 9 January, the notice was issued by the bench of Justice Sanjiv Khanna and Justice MM Sundresh when senior advocate KV Viswanathan appearing for Andhra Pradesh told the court that the bifurcation of the state took place by the 2014 Act, which provides for the sharing of assets and the way it has to be done but still assets worth crores of rupees have not come to Andhra Pradesh.
The notice issued to the Centre and Andhra Pradesh was returnable in April, but when the matter came up for hearing on 18 April, it was adjourned on the request of Telangana seeking more time to file its reply.
In the hearing of the matter on 16 December, 2022, senior advocate Viswanathan, described the situation as “alarming” as nothing has moved since the bifurcation of the state in 2014.
Andhra Pradesh sought the apportionment of assets specified in Schedule IX (relating to government companies and corporations) and X (continuance of facilities in certain state institutions).
The state, in its petition, pointed out that most of the assets to be shared between it and Telangana are located in Hyderabad.
It said that though the bifurcation of the state took place on 2 June, 2014, and despite the apportionment of assets and liabilities conclusively made under the act, the “actual division of assets has not even commenced till date”.
Andhra Pradesh told the top court that it was the situation despite its repeated efforts to seek a speedy resolution of the outstanding issues.
Telling the court that, of the 233 institutions mentioned under Schedule IX and X and another 12 not mentioned in the Reorganisation Act, the assets and liability of “not a single Institution had been apportioned between the successor states”.
The total value of the fixed assets of 245 institutions that are to be divided between the two states is about ₹1,42,601 crore, said the suit by Andhra Pradesh
Andhra Pradesh said in the petition that Hyderabad — which was the capital of the united Andhra Pradesh before 2 June, 2014, and now a part of Telangana — “was not only transformed into an economic powerhouse as a result of the ‘Capital Centric Development Model’”.
It added that most of the institutions of governance [intended for the welfare of the people of all the regions of the state] including government infrastructure were exclusively centred in and developed around the city of Hyderabad by extensively investing resources of the combined state.
Andhra Pradesh asserted that the non-apportionment of the assets has led to a multitude of issues adversely affecting and violating the fundamental and other constitutional rights of the people of Andhra Pradesh including the employees of the said institutions.
“Without adequate funding and actual division of Assets in terms of the apportionment made under the Act, the functioning of the said Institutions in the State of Andhra Pradesh has been severely stunted,” said the suit by Andhra Pradesh.
Seeking a division of these assets at the “earliest” so that a “quietus” could be put to the issue, Andhra Pradesh said that the long delay in the division of assets and liabilities between the successor states had adversely impacted approximately 1,59,096 employees working in these institutions.
It also said their fate was in limbo since 2014 solely because there has been no proper division.
Andhra Pradesh told the top court that it is imperative that all these assets be divided at the earliest, adding that “the position of the pensionable employees who have retired post bifurcation is pitiable and many of them have not received terminal benefits”.
It pointed out that the institutions are an extension of the state and perform a range of basic and essential functions in diverse fields.
Speaking as a custodian of the people residing in the state, Andhra Pradesh said, “the fact that their assets have not yet been bifurcated has seriously debilitated their functioning which has a direct and adverse impact on the people of state Andhra Pradesh, who they are intended to serve.”
Of the eight prayers on which declaration/direction has been sought, Andhra Pradesh urged the top court to declare that the inaction of Telangana and the Central government in not dividing the assets and liabilities as being “arbitrary and violative of the Fundamental Rights of the people of Andhra Pradesh”.
It has further sought directions to Telangana to furnish details of all properties — both immovable and movable, including funds — of the erstwhile Andhra Pradesh of the institution mentioned in Scheduled IX and X of the Act and even otherwise.
