On Monday, the Supreme Court gave notice in a case where the State of Andhra Pradesh asked for a partition of its assets and debts with the State of Telangana.
The Central and Telangana governments received notice in the case from a bench of Justices Sanjiv Khanna and MM Sundress.
According to the current complaint, which was made by attorney Mahfooz A. Nazki, although the two states were formed back in June 2014 and the Andhra Pradesh Reorganisation Act, 2014, provided for the allocation of assets and liabilities, the actual division of assets has not even begun as of yet, despite repeated efforts by the Andhra Pradesh government to seek a swift resolution.
To represent the interests of its citizens as well as its rights, including those guaranteed by Articles 14 and 21 of the Indian Constitution, the State petitioned the Supreme Court in parens patriae status. It asked for a swift, fair, and equitable division of the assets and liabilities of the former State of Andhra Pradesh between the two newly formed states.
According to the contention, the assets and liabilities of 12 more institutions in addition to those listed in Schedules IX and X of the Act (91 and 142 institutions, respectively) have not been distributed among the states.
Further, it is argued that Telangana benefits from the non-division of the assets, valued at $1,42,601 crore, as nearly 91% of them are located in Hyderabad, the former capital of the merged State that is now part of Telangana.
According to the claim, the failure to allocate the assets has resulted in several problems that have harmed and/or violated the fundamental rights of the residents of the State of Andhra Pradesh, including the staff members of the institutions in question.
"Since 2014, the 1,59,096 employees who work in these institutions have been in a state of uncertainty due to an improper division. Many pensionable workers who retired after the bifurcation are in a pitiful position and have not yet received terminal payments. Therefore, it is essential that all of these assets be divided as soon as possible and that a quietus is established", the petition stated.
The plea emphasised that the institutions are an extension of the State and carry out a variety of fundamental duties. It claimed that the non-bifurcation of the assets has seriously hampered their operation, which has a detrimental effect on the citizens of the State of Andhra Pradesh.
As a result, it asked the Court to declare that Telangana's inactivity had violated the fundamental rights of its citizens. It also asked the Court for all necessary instructions to guarantee a prompt division of assets between the States.