SC notice to Centre, Telangana on division of assets plea by Andhra Pradesh

The Supreme Court on Monday sought a response from the Centre and the Telangana government on a plea filed by Andhra Pradesh government seeking expeditious and equitable division of assets and liabilities following its division.

A bench of Justices Sanjiv Khanna and M M Sundresh issued notice to the Centre and the Telangana government on a writ petition filed by Andhra Pradesh.

The plea said Telangana came into existence as long back as on June 02, 2014, and the apportionment of assets and liabilities has been conclusively made between the successor States, the actual division of assets has not even commenced till date, despite repeated efforts by the government of Andhra Pradesh seeking a speedy resolution.

It claimed “non-division of the assets is clearly to the benefit of Telangana since about 91 percent of these assets are situated in Hyderabad, rhe capital of the erstwhile combined State, which is now in Telangana”.

The plea said Hyderabad was not only transformed into an economic powerhouse because of the ‘Capital Centric Development Model’ but also, 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.

The AP government said the employees working in the state institutions (1,59,096) have been in a limbo since 2014, solely because there has been no proper division. The government said it is therefore imperative that all assets be divided at the earliest and a quietus be put to the issue.

The Andhra Pradesh said the approximate value of assets of the Headquarters of Schedule – IX institutions is estimated as Rs 24,018.53 crores. Out of these, Assets worth Rs 22,556.45 crores [93.9%] are located in the State of Telangana. Further in respect of Schedule – X institutions, the total approximate value of fixed assets to be divided between the two successor States is Rs 34,642.77 crores. Out of these, Assets worth Rs 30,530.86 crores [88%] are located in the State of Telangana.

In respect of the 12 institutions so far identified which are not mentioned either in Schedule – IX or Schedule – X of the Reorganisation Act, all their assets, approximately valued at Rs 1759 crores, are located in the State of Telangana.

The plea was settled by senior advocate K V Vishwanathan and filed by Mahfooz A Nazki.