Andhra Pradesh will now get a fair share in all the assets located in Hyderabad, including bank deposits, buildings, lands and other infrastructure, even if the entire government shifts its base to Amaravati, its new capital in Guntur district.
The Supreme Court on Friday gave a landmark judgement stating that the assets of various offices and institutions run by the erstwhile united Andhra Pradesh government, would have to be shared by both Andhra Pradesh and Telangana governments in the ratio of 58:42.
The judgement was delivered following a petition filed by the AP government challenging the High Court’s order on the assets of the State Higher Education Council.
The High Court had said last year that the assets belonged to the Telangana government and the AP government could use them only for a period of 10 years till Hyderabad remained the joint capital.
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.
The apex 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.
The Supreme Court said all the assets especially the bank deposits being held by various institutes such as Telugu University and Open University, Higher Education Council etc, would belong to both the States. The AP will get 58 per cent in the frozen accounts of various institutes located in Hyderabad.
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.
The Supreme Court asked the Centre to complete the division in two months. The apex court categorically stated that this judgement will be applicable to all the institutions in Hyderabad.
This judgement will come as a major relief to Andhra Pradesh which is reeling under the pressure of severe financial crunch after the state division.
