AP Excessive Courtroom Admits PIL On APMDC, Discover Issued To Centre And State; Response Sought In 4 Weeks | India Information

The Andhra Pradesh Excessive Courtroom on Tuesday admitted a Public Curiosity Litigation (PIL) difficult the state authorities’s transfer to lift practically Rs 9,000 crore in loans allegedly by leveraging the property and title of the Andhra Pradesh Mineral Growth Company (APMDC).

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

The PIL was filed by YSR Congress Social gathering MLC and Common Secretary Lella Appi Reddy, who accused the Chandrababu Naidu-led authorities of violating constitutional norms and endangering the monetary well being of each APMDC and the state. Senior advocate P. Veera Reddy represented the petitioner in courtroom.

In accordance with the petition, the state authorities is allegedly pledging the state treasury as collateral to safe personal loans by way of APMDC, a transfer that the petitioner claimed might grant personal lenders direct entry to the consolidated fund of the state within the occasion of mortgage default.

That is reportedly the primary occasion in Andhra Pradesh’s historical past the place such a mechanism has been used, elevating considerations about its legality and long-term monetary implications. The PIL additionally warned that APMDC, as soon as a steady and worthwhile public sector enterprise, is now being dragged towards insolvency resulting from these controversial borrowing strategies.

The courtroom will take up the matter after the completion of the four-week response interval.