LOK SABHA ELECTIONS 2019: INDIA DECIDES

AP Financial Corporation takes off Telangana cheque rights

DECCAN CHRONICLE.
Published Mar 15, 2019, 12:48 am IST
Updated Mar 15, 2019, 12:48 am IST
The SFC is listed in the 9th Schedule of the AP Reorganisation Act and has not been bifurcated even after five years.
In a letter to the manager of Syndicate Bank’s Abids branch, Mr Jain said that as per the board’s decision, the corporation had given standing instructions withdrawing powers to the SFC’s TS branches to operate its current account.
 In a letter to the manager of Syndicate Bank’s Abids branch, Mr Jain said that as per the board’s decision, the corporation had given standing instructions withdrawing powers to the SFC’s TS branches to operate its current account.

Hyderabad: AP Financial Corporation MD Siddharth Jain has withdrawn authorisation for its branch officers in Telangana state to operate accounts, kicking off a fresh controversy between the two Telugu states. The SFC is listed in the 9th Schedule of the AP Reorganisation Act and has not been bifurcated even after five years.

In a letter to the manager of Syndicate Bank’s Abids branch, Mr Jain said that as per the board’s decision, the corporation had given standing instructions withdrawing powers to the SFC’s TS branches to operate its current account.

 

The SFC has already withdrawn the authorisation to the branch officers for operation of the collection account. The available collections are transferred to the head office account on a daily basis. He said that the branch officers were not authorised to issue cheques for all the SFC accounts.

AP against industrial growth in TS, say staff
AP Financial Corporation managing director Siddharth Jain has withdrawn authorisation for its branch officers in Telangana state to operate accounts.
He said that the available balance in the accounts shall be transferred to the head office current account every day. He has directed the Syndicate Bank manager to not entertain any cheques issued by the SFC branches in Telangana state.

For administration purposes, the employees of SFC were divided into two units, one each for Telangana state and Andhra Pradesh. They continue to work from the same office. Administrative and financial powers lie with the managing director who belongs to the AP government.

Telangana state employees alleged that the AP government wanted to affect industrial development in TS which is why it had issued the order.

Reacting to the development, SFC Telangana Employees' Union president Radhakrishna said that at a time when several industries were coming up in Telangana, removal of cheque powers to TS unit managers would affect industrial growth in the new state.

He said that the SFT target was to lend Rs 700 crore every year. He demanded that the cheque powers be restored to Telangana bank branch managers. Mr Jain, who is also commissioner of industries in AP, said similar instructions were issued to AP bank managers.

Speaking to this newspaper, he said that as the financial year was ending, the board had taken this decision. The instructions were temporary and once financial accounts are completed, the power of bank managers will be restored.

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Location: India, Telangana, Hyderabad




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