Supreme Court to hear Andhra Pradesh plea on division of assets with Telangana in January

Andhra Pradesh said the total assets to be divided amounts to ₹1,42,601 crore; delay violates people's fundamental rights.

Published Dec 16, 2022 | 7:43 PMUpdated Dec 16, 2022 | 7:43 PM

Andhra Pradesh division of assets

The Supreme Court on Friday, 16 December, said that it will hear in January the Andhra Pradesh government’s plea seeking a “fair, equitable and expeditious division of assets and liabilities” of institutions and corporations of the united Andhra Pradesh with the bifurcated Telangana under the Andhra Pradesh Reorganisation Act, 2014.

Andhra Pradesh has sought the apportioning of assets specified in Schedule IX (relating to government companies and corporations) and X (continuance of facilities in certain state institutions).

Senior advocate KV Viswanathan, appearing for Andhra Pradesh, described the situation as “alarming” as nothing has moved since the bifurcation of the state in 2014.

Promising to take up the matter in the second week of January, a bench of Justice Sanjiv Khanna and Justice MM Sundresh asked Andhra Pradesh to serve an advance copy of its petition on Telangana.

Noting that there are other similar petitions pending before it, the court asked the Andhra Pradesh government to serve a copy of its petition on them as well.

Also read: SC seeks reply on deletion of names from voters’ list in AP

Pointing out that most of the assets to be shared between the two states are located in Hyderabad, Andhra Pradesh has said in its petition that though the bifurcation of the state took place on 2 June, 2014, and despite the apportioning of assets and liabilities between the two states conclusively made under the Reorganisation Act, the “actual division of assets has not even commenced till date”.

Andhra Pradesh has told the top court that this is the situation despite repeated efforts at seeking a speedy resolution of the outstanding issues.

Nothing apportioned till now

The state pointed out that, of the 233 institutions mentioned in Schedule IX and X and another 12 not mentioned in the Reorganisation Act, the assets of “not a single institution have been apportioned between the successor states”

The total value of the fixed assets of 245 institutions is about ₹1,42,601 crore, Andhra Pradesh has contended.

On Hyderabad — capital of united Andhra Pradesh and now capital of Telangana — the petition said it was “not only transformed into an economic powerhouse as a result of the ‘Capital Centric Development Model’, but also (because) most of the institutions of governance (intended for the welfare of the people of all the regions of the state), including government Infrastructure, was exclusivelycentredd in and developed around the city”.

And this was done by “extensively investing resources of the combined state”, Andhra Pradesh told the top court.

Also read: Telangana accuses AP of violating Reorganisation Act

Violation of constitutional rights

Andhra Pradesh has 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 these institutions.

Andhra Pradesh equitable division

Andhra Pradesh Chief Minister YS Jagan. (AndhraPradeshCM/Twitter)

“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.

Seeking a division of these assets at the “earliest” so that a “quietus” could be put to the issue, Andhra Pradesh said the long delay had adversely impacted approximately 1,59,096 employees working in these institutions and their fate is in limbo since 2014 solely because there has been no proper division.

Affecting pensionable employees

The petition said that “the position of the pensionable employees who have retired post-bifurcation is pitiable and many of them have not received terminal benefits”.

Pointing out that the institutions are an extension of the state and perform a range of basic and essential functions in diverse fields, Andhra Pradesh, speaking as a custodian of the people residing in the state, 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 Andhra Pradesh, who they are intended to serve.”

Andhra Pradesh has urged the top court to declare that the inaction of Telangana and the central government over dividing the assets was “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 institutions mentioned in Scheduled IX and X of the Act.

Follow us