Andhra, Telangana spar over assets

Hyderabad - Telangana, the 29th state in the country, was carved out of AP in June, 2014.

 Even after two years of separation, the two Telugu states of Telangana and Andhra Pradesh are still haunted by the post-bifurcation blues.
After sparring over share of power and water, the two states are now caught in a bitter battle over who should control the funds of the public institutions which are under common control as per the bifurcation act.
At the heart of the dispute is the control over assets of 142 institutions, located in Hyderabad, that were established by the erstwhile combined state of Andhra Pradesh. Telangana, the 29th state in the country, was carved out of AP in June, 2014.
The recent landmark judgement of the SC, ruling that the division of assets of autonomous institutions should be based on population and not on their location, has boosted the AP's case.
Bolstered by the apex court's verdict, the cash-strapped AP is now preparing to lay claim to assets, worth thousands of crore, in all these 142 institutions to the tune of 58 per cent as per the population ratio.
The assets of the 142 institutions include land, buildings and bank deposits. A majority of them are located in Hyderabad which will serve as a joint capital till 2024 after which it would become permanent capital of Telangana. As per the initial estimates, the assets and bank deposits could be worth Rs300 billion.
The dispute over assets started with the Telangana government ordering freezing of accounts of A P State Council of Higher Education (APSCHE) on the grounds that it had ceased to exist after the formation of Telangana State Council of Higher Education.
The AP government, headed by N Chandrababu Naidu, moved the High Court which, however, upheld the Telangana government's decision. Subsequently, Telangana staked claim over 120 government institutions established during the united Andhra regime in Hyderabad and froze all their assets too.
The AP government then moved the Supreme Court which delivered its landmark judgement last week. It ruled that Telangana cannot claim absolute right over these institutions merely because they are located in its capital Hyderabad, which is geographically a part of Telangana.
If the SC judgement has to be implemented in toto, the Telangana government will lose a major source of revenue from these institutions.
news@khaleejtimes

• India