AP High Court Admits PIL On APMDC, Notice Issued To Centre And State; Response Sought In Four Weeks

The Andhra Pradesh High Court on Tuesday admitted a Public Interest Litigation (PIL) difficult the state executive’s transfer to lift just about Rs 9,000 crore in loans allegedly by means of leveraging the property and identify of the Andhra Pradesh Mineral Development Corporation (APMDC).

A department bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati issued notices to each the central and state governments, directing them to post their counter-affidavits inside 4 weeks.

The PIL used to be filed by means of YSR Congress Party MLC and General Secretary Lella Appi Reddy, who accused the Chandrababu Naidu-led executive of violating constitutional norms and endangering the monetary well being of each APMDC and the state. Senior recommend P. Veera Reddy represented the petitioner in courtroom.

According to the petition, the state executive is allegedly pledging the state treasury as collateral to protected personal loans via APMDC, a transfer that the petitioner claimed may grant personal lenders direct get entry to to the consolidated fund of the state within the match of mortgage default.

This is reportedly the primary example in Andhra Pradesh’s historical past the place any such mechanism has been used, elevating considerations about its legality and long-term monetary implications. The PIL additionally warned that APMDC, as soon as a strong and winning public sector endeavor, is now being dragged towards insolvency because of those debatable borrowing strategies.

The courtroom will absorb the subject after the of completion of the four-week reaction duration.