Appi Reddy knocks HC doors against govt
Amaravati: YSRCP MLC Lella Appi Reddy on Friday filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court, strongly 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 with respect to the proposed Non-Convertible Debentures issuance by the Andhra Pradesh Mineral Development Corporation (APMDC).
He argued that this provision is unconstitutional, as it bypasses legislative approval and violates Articles 203, 204, and 293 of the Constitution. He urged the Court to declare the move illegal and sought a stay on further proceedings.
In the PIL, Appi Reddy expressed serious concern that private bond holders or debenture trustees could be allowed to withdraw funds directly from the State's consolidated fund in total 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 over 436 minor mineral quarries to APMDC without any open bidding or competitive process.
He argued that this violates the AP Minor Mineral Concession Rules and allows public resources to be used without transparency or oversight.
Further, the APMDC was permitted to mortgage these mineral rights to private entities, who were also empowered to transfer or sell them without government approval. The petitioner termed this a dangerous and unlawful handover of State-owned assets. Appi Reddy requested the High Court to strike down the entire scheme as unconstitutional and arbitrary, and to halt the issuance of NCDs backed by public assets. The PIL aims at safeguarding the State's resources and financial integrity from being misused for private financial arrangements.
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