Tirupati MP Dr. M. Gurumoorthy has raised serious concerns in Parliament over the reported issuance of non-convertible debentures (NCDs) worth ₹9,000 crore by the Andhra Pradesh Mineral Development Corporation (APMDC), a state-owned enterprise.
Speaking under Rule 377, the MP described the move as a potential case of constitutional and financial impropriety.
He claimed that, under this arrangement, the Reserve Bank of India (RBI) allegedly permitted a private debenture trustee to access funds directly from the state treasury via a direct debit mechanism.
Gurumoorthy questioned whether such a process violates Articles 203 and 204 of the Constitution, which mandate legislative approval for any withdrawal from the state’s treasury.
“Can the central government allow such a deviation from constitutional provisions?” he asked.
He further alleged that the funds raised through these debentures were being routed back to the state government, disguised as compensation for mining leases, thereby functioning as a backdoor loan.
Quoting Article 293(3) of the Constitution, the MP pointed out that a state already indebted to the Centre cannot raise further loans without the Centre’s prior consent.
Dr. Gurumoorthy warned that this setup appears to be a deliberate attempt to bypass financial oversight mechanisms. Urging immediate central intervention, he stated:
“Public funds must be protected, and constitutional procedures must be upheld.”
He called on the Union government to take swift action to prevent any further misuse of the state treasury.
