The YSR Congress Party on Wednesday filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court challenging the Chandrababu Naidu government's move to secure loans worth nearly ₹9,000 crore by allegedly misusing the name and assets of the Andhra Pradesh Mineral Development Corporation (APMDC).
The court issued notices to both the central and state governments, directing them to file counter-affidavits within four weeks.
The PIL was filed by YSRCP MLC and general secretary Lella Appi Reddy, who argued that the government's actions violated constitutional principles and posed a threat to the financial stability of both APMDC and the state. He urged the court to intervene and halt the alleged misuse.
A division bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati heard the case. Senior advocate P Veera Reddy represented the petitioner.
The PIL alleged that the Naidu government was using the state treasury as collateral for private loans, thereby granting private lenders direct access to public funds.
It warned that if APMDC defaulted on repayment, the lenders would be legally entitled to withdraw money directly from the state's consolidated fund.
The petition emphasized that this is the first instance in Andhra Pradesh’s history where such direct access to the treasury has been enabled for loan recovery.
It also stated that APMDC, once a financially sound public enterprise, is now being pushed toward financial distress due to irresponsible borrowing.
