The Andhra Pradesh Excessive Court docket has admitted a Public Curiosity Litigation (PIL) difficult the state authorities’s makes an attempt to safe loans price practically Rs 9,000 crore by allegedly misusing the identify and property of the Andhra Pradesh Mineral Improvement Company (APMDC). The court docket issued notices to each the central and state governments, directing them to file their counter-affidavits inside 4 weeks.

The PIL was filed by YSR Congress Social gathering MLC and Normal Secretary Lella Appi Reddy, who argued that the federal government’s actions have been in violation of constitutional norms and posed a danger to each the monetary way forward for APMDC and the state itself. He requested the court docket to intervene and cease this alleged misuse.

The case was heard by a division bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati. Senior advocate P. Veera Reddy offered arguments on behalf of the petitioner.

The PIL said that the present authorities beneath Chandrababu Naidu was pledging the state treasury as collateral for personal loans, thereby permitting personal entities direct entry to public funds. It warned that if APMDC did not repay the loans on time, personal lenders can be legally empowered to withdraw cash instantly from the state consolidated fund.

The petition identified that that is the primary time in Andhra Pradesh’s historical past that such direct entry to the treasury has been enabled for mortgage reimbursement. It additional said that APMDC, which was as soon as a financially sound public sector enterprise, is now being pushed towards monetary break attributable to irresponsible borrowing practices.