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Division of Assets: Supreme Court issues notice to Centre, Telangana on plea by Andhra Pradesh

The Supreme Court on Monday issued notice to the Union of India and the State of Telangana a writ petition filed by the State of Andhra Pradesh for division of assets and liabilities with the State of Telangana under the Andhra Pradesh Reorganization Act, 2014.

The Bench comprising Justice Sanjiv Khanna and Justice M.M. Sundresh issued notices on the plea seeking expeditious, equitable and fair division of assets and liabilities of the erstwhile State of Andhra Pradesh between the States of Andhra Pradesh and Telangana, in terms of the Apportionment made under the Andhra Pradesh Reorganisation Act, 2014.

The Counsel appearing for Andhra Pradesh requested the Apex Court for an early resolution of the issue, stating that this was an extraordinary situation, wherein the Act, which clearly apportioned everything, was brought in 2014.

In the writ petition, Andhra Pradesh contended that not even a single institution specified in Schedule IX (91 institutions), Schedule X (142 institutions) and Institutions not mentioned in the Andhra Pradesh Reorganisation Act, 2014 (12 institutions) have been apportioned between the States following their reorganisation in 2014.

The plea said that the total amount of fixed assets, which was to be divided by the institution, was about Rs 1,42,601 crore, adding that the non-division of assets benefitted Telangana as 91 percent of these assets were in Hyderabad, which had become the capital city of Telangana.

It added that the institutions being referred to in the petition performed various essential and basic functions, such as agriculture, dairy development, education, medical services, minority and backward class development, industrial development, infrastructure development and social security.

(Case title: State of AP vs UoI And Anr)

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