State of Andhra Pradesh moves Supreme Court seeking division of assets between Andhra Pradesh and Telangana

The State of Andhra Pradesh has approached the Supreme Court with a petition seeking division of assets and liabilities between itself and the State of Telangana. [State of Andhra Pradesh v. Union of India].The State has moved the 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, in 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 filed through Advocate Mahfooz A Nazki states that despite the two States being formed way back in June 2014, and the apportionment of assets and liabilities having been made under the Andhra Pradesh Reorganisation Act, 2014, the actual division of assets has not even commenced till date, despite repeated efforts by the Andhra Pradesh government seeking speedy resolution.It claims that assets and liabilities of not a single Institution specified in Schedule - IX (91 institutions) and Schedule - X (142 institutions) of the Act, and another 12 Institutions, have been apportioned between the States. .The plea has 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.The following facts have been highlighted to demonstrate that the resources of the erstwhile State were invested in infrastructure in and around Hyderabad, owing to the capital-centric development model.The approximate value of Assets of the Headquarters of Schedule – IX institutions is estimated as Rs.24,018.53 crores. Out of these, Assets worth Rs.22,556.45 crores (93.9%) are located in the State of Telangana. In respect of Schedule – X institutions, the total approximate value of fixed assets to be divided between the two successor States is Rs.34,642.77 crores. Out of these, Assets worth Rs.30,530.86 crores (88%) are located in the State of Telangana. In respect of the 12 institutions which are not mentioned either in Schedule – IX or Schedule – X of the Act, all their assets, approximately valued at Rs. 1759 crores, are located in the State of 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.