Telangana gets SC shocker on split of assets with Andhra Pradesh

Telangana claim on all properties, deposits rejected; assets to be divided on 58:42 ratio based on population.

New Delhi: Rejecting Telangana state’s claim that it was entitled to the entire assets and deposits of the erstwhile Andhra Pradesh State Council for Higher Education (APSCHE), the Supreme Court on Friday ordered that the assets be divided between the two states in the ratio of 58:42 on the basis of their population.

Giving this ruling, a bench of Justices V. Gopala Gowda and Arun Mishra said if the two states did not agree for this arrangement, the Centre would constitute a committee to arrive at an agreement within two months.

Read: Telangana to seek review of verdict

The bench said in the case, Telangana had claimed the entire funds and assets of the APSC. This could surely not have been the intention of the legislature while enacting the Reorganisation Act, 2014, just because the institutions are in Hyderabad, which falls in Telangana state.

It said: “We are wholly unable to agree with the contention advanced on behalf of the state of Telangana. If this contention is accepted, it would render Section 47 of the State Reorganisation Act, which provides for the apportionment of assets and liabilities among the successor states, useless and nugatory. The action of the banks of freezing the bank accounts of APSC is wholly untenable in law, which must be set aside.”

( Source : Deccan Chronicle. )
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