PIL filed in HC against A.P. govt. over private party's access to State's Consolidated Fund
YSR Congress Party (YSRCP) MLC Lella Appi Reddy has filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court, objecting to the State Government's move to permit a private party to approach the RBI and access the Consolidated Fund of the State.
This development is concerning the proposed NCD issuance by the APMDC. The MLC argued that this provision is unconstitutional as it bypasses legislative approval and violates Articles 203, 204, and 293 of the Constitution.
He urged the High Court to declare the move illegal and sought a stay on further proceedings, according to a press release.
Referring to the PIL, Mr. Appi Reddy expressed concern that private bondholders or debenture trustees could be allowed to withdraw funds directly from the State's consolidated fund, in violation of the Constitutional provisions providing for legislative oversight.
He stated that such access undermines the principles of financial accountability and violates the Constitution's framework for public finance. The PIL also questioned the government's decision to grant lease rights of over 436 minor mineral quarries to APMDC without any open bidding or competitive process, he said.
The YSRCP leader argued that this violates the Andhra Pradesh Minor Mineral Concession Rules and allows public resources to be used without transparency or oversight.
Mineral rights
Further, the APMDC has been permitted to mortgage these mineral rights to private entities, who are empowered to transfer or sell them without government approval.
The petitioner termed it as a 'dangerous and unlawful handover of State-owned assets.
Mr. Appi Reddy requested the High Court to strike down the entire scheme by deeming it unconstitutional and arbitrary, and to halt the issuance of NCDs (bonds) backed by public assets. The PIL aims to safeguard the State's resources and financial integrity from being misused for private financial arrangements, he added.
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