Saturday, 1 November 2014

Rs 12k cr cash sets up Andhra Pradesh, Telangana battle

HYDERABAD: After squabbling over power and water, Andhra Pradesh and Telangana are engaged in an intense behind-the-scene maneuvers to corner nearly Rs 12,000 crore cash and undisclosed amount in the form of fixed deposits that are lying in various banks in Hyderabad. This cash is meant to be divided in the ratio of 58.32: 41.68 between AP and Telangana but without waiting for the due process of division in a planned manner, the two states are going about garnering from these accounts as much cash for themselves as possible.

A day after Telangana took umbrage over AP transferring Rs 400 crore from the Rs 1,463 crore amount (meant to be distributed between the two states) from a bank account in Hyderabad to another in Vijayawada, the TDP government alleged that the TRS regime has garnered for itself the cash deposits meant for both states lying in the bank accounts of the National Institute of Electronics, AP Foods, National Academy of Construction and Tourism and Hospitality Institute. They are among the entities listed under the 9th and 10th schedules of the AP Reorganization Act 2014. While those under the 9th Schedule have to be immediately divided between the two states, in the case of those organizations under the 10th Schedule, one year's time has been given to them to complete the division process.

According to sources, nearly Rs 12,000 crore belonging to these organizations are lying in the bank accounts in Hyderabad at present. "Apart from this, fixed deposits of undisclosed amounts are lying in about 26 banks in Hyderabad. Now, both the cash-strapped states are engaged in transferring the cash to their individual bank accounts in order to utilize the same," sources said.

According to the sources, the TDP government has already issued orders to all departments that are overseeing the institutions listed in the 10th Schedule of the AP Reorganization Act to 'protect' the money and assets that rightfully belong to the state. "Unless the financial division happens immediately with the mediation of the Centre, the cash war between AP and Telangana is bound to become bitter and ugly," the sources warned.