The Telangana government has asserted that the bifurcation of assets and liabilities of the erstwhile AP State Finance Corporation cannot be made until the Andhra Pradesh government withdraws cases it filed in the court.
Bifurcation of the corporation has been pending as the AP government, on the strength of its members on the board of directors, passed a “unilateral” resolution on its demerger. The Telangana government took strong objection to the manner in which the demerger was approved when there were no members on its behalf on the board and asked the Central government not to approve the demerger plans.
The issue figured in the virtual meeting conducted by the Ministry of Home Affairs joint secretary with Finance Secretaries of the two Telugu States -- Telangana and Andhra Pradesh -- on Thursday. The MHA joint secretary was informed about Telangana’s request made way back in May 2016 for reconstitution of the APSFC board invoking its powers under Section 71(b) of the AP Reorganisation Act, 2014 which is still pending.
