It’s a windfall of sorts for Andhra Pradesh. The Telangana government has no option but to share the assets belonging to the Higher Education department with Andhra Pradesh in 58:42 ratio.
Today’s Supreme Court judgment put an end to the year-long row over the distribution of assets especially the bank deposits being held by various institutes such as Telugu University and Open university, Higher Education Council etc. The AP will get 58 per cent in the frozen accounts of various institutes located in Hyderabad.
The row between Andhra Pradesh and Telangana began with Telangana government asking all banks in which many institutes deposited their money to freeze the accounts. After the division of erstwhile Andhra Pradesh many banks informed Andhra Pradesh government that they can’t operate certain accounts of education department. For example on 20.01.2015 State Bank of Hyderabad informed Andhra Pradesh that they had decided not to allow AP state council for higher education not to operate savings bank account held in Shantinagar branch at the instance of Telangana government. Similarly, Andhra Bank, Canara Bank, State Bank of India also wrote letters to Andhra Pradesh higher education council informing that Telangana state had requested them to freeze the accounts. About Rs 120 to 150 crore got locked up this way. And the dispute reached Hyderabad High Court.
Later the Hyderabad High court in a judgment clearly stated after the formation of Telangana state, the assets, properties and funds whatever lying at the present location of AP state council belong to Telangana state council. So, Andhra Pradesh, which lost the case, challenged the judgment in Supreme Court.
Today, in a victory to the state of Andhra Pradesh, the supreme court, setting aside the High Court judgment, clearly ruled that the assets in Hyderabad belonging to TSC should be divided between the two successor states and no one state could lay full claim over them. A two -Judge bench of Justice Gopal Gouda and Justice Arun Mishra upheld the contention of Andhra Pradesh, which defended their share in the assets of higher education council. Court stated that there would be no meaning for the section 45 of bifurcation Act if the assets were not divided between the two successor states in the ratio of 58:42.
Talking on the judgment, Andhra Pradesh HRD minister Ganta Srinivasa Rao said union government would intervene and resolve if any problem crops up while distributing the assets. The minister also said the Supreme Court verdict would be applicable to all institutions and corporations incorporated in the tenth schedule of the AP Reorganization Act, 2014.
Giving details about the accounts frozen by the banks the minister said Telugu University had frozen about Rs 45 crore and Dr BRAOU to the tune of Rs 40 crore. He said he would place matter before the cabinet and the government would decide upon the course of action very soon.
