Supreme Court issues notice on plea seeking division of assets between Andhra Pradesh and Telangana

The Supreme Court on Monday issued notice in a plea by the State of Andhra Pradesh seeking division of assets and liabilities between itself and the State of Telangana [State of Andhra Pradesh v. Union of India]..A Bench of Justices Sanjiv Khanna and MM Sundresh issued notice to the Central and Telangana governments in the matter."Notice be issued to the respondent no.1 [Union of India], on steps being taken within seven days from today. Notice will be given dasti as well. Reply/counter affidavit will be filed within six weeks from today. Rejoinder affidavit, if any, will be filed within four weeks after service of reply/counter affidavit.".The present plea filed through Advocate Mahfooz A Nazki stated that despite the two states being formed way back in June 2014, and whereby the apportionment of assets and liabilities were made under the Andhra Pradesh Reorganisation Act, 2014, the actual division of assets has not even commenced till date, while repeated efforts have been made by the Andhra Pradesh government seeking speedy resolution..Therefore, the State moved to the top court as parens patriae to represent the cause of its people as well as its own rights, including the rights under Article 14 and 21 of the Constitution of India, seeking a fair, equitable and expeditious division of assets and liabilities of the erstwhile State of Andhra Pradesh between the two newly formed states.The plea claimed that assets and liabilities of the institutions specified in Schedule IX (91 institutions) and Schedule X (142 institutions) of the Act, and another 12 institutions, have not been apportioned between the states.It is further contended that non-division of the assets, valued at ₹1,42,601 crore, is clearly to the benefit of Telangana, since about 91% of these assets are situated in Hyderabad, the capital of the erstwhile combined State, which is now in Telangana..Non-apportionment of the assets, according to the plea, has led to a multitude of issues adversely affecting and violating the fundamental and other constitutional rights of the people of the State of Andhra Pradesh, including the employees of the institutions in question."The employees working in these institutions [approximately 1,59,096] have been in a limbo since 2014 solely because there has been no proper division. The position of pensionable employees who have retired post bifurcation is pitiable and many of them have not received terminal benefits. It is therefore imperative that all these Assets be divided at the earliest and a quietus be put to the issue," the plea stated..Underlining that the institutions are an extension of the State and perform a range of basic and essential functions, the plea said that non-bifurcation of the assets has seriously debilitated their functioning, which has a direct and adverse impact on the people of the State of Andhra Pradesh.Therefore, it sought a declaration from the Court that Telangana's inaction was violative of the fundamental rights of its people and further sought all necessary directions to ensure speedy bifurcation of assets between the States..[Read order]