AP, TS caught in fund transfer row - TeluguPeople.com News

HYDERABAD: Transfer of Rs 398 crore of AP Building and Other Construction Workers' Welfare Board (APBOCWWB) lying in banks in Hyderabad to their branches in Vijayawada has kicked off a major controversy between the two states.

While AP claimed that it did nothing illegal while transferring the funds, the Telangana government cried foul alleging that funds had been transferred stealthily. After the police registered a case against Additional Commissioner of Labour PV Murali Sagar and conducted searches at his office as well as his home, the AP government took a strong exception to this.

On instructions from the Chief Minister, Chief Secretary IYR Krishna Rao lodged a complaint with Governor ESL Narasimhan on how the TS government was trying to rake up issues when there was case for none.

Not to be outdone, TS Chief Secretary Rajiv Sharma reportedly held a meeting with officials and later met the Governor and explained as to how siphoning of the money from the welfare board took place.

The CS is understood to have issued instructions to banks not to transfer funds of institutions which have not yet been divided without the knowledge of the TS government.

TS Home Minister Nayani Narasimha Reddy, accusing the AP government of stealing Telangana funds, said: 'Transfer of funds was part of a conspiracy. The AP government has taken away funds belonging to the workers. It is a despicable act'.

It all began with Chikkadpally police registering a criminal case against Murali Sagar for transferring funds 'in violation of the AP Reorganisation Act 2014'.

The complaint against Sagar was lodged by Labour Commissioner A Ashok. Afer registering cases against Sagar, the police detained him while he was coming out from the Secretariat.

According to AP government Communications Advisor Parakala Prabhakar, the police had stopped Sagar's car, forced his driver out and ordered their driver to take the official to the police station where he was questioned for a couple of hours. Later, notices were served on him to appear before the police on Friday.

The TS Labour Commissioner in his complaint alleged that without the knowledge of Board for Building and Other Construction Workers Welfare for Telangana and intimation to its officials, the AP Board officials -- Murali Sagar and Rama Rao -- transferred Rs 398 crore from different banks in Hyderabad to their respective branches in Vijayawada.

Speaking to reporters at the Secretariat here, Prabhakar refuted the allegation of TS government that AP has illegally taken away the share of TS from the AP welfare board. The amount of Rs 398 crore transferred from Hyderabad to Vijayawada was from the rightful share of AP and not TS, he said.

The division of the board had not taken place so far, as the board does not fall under Schedule 9 or 10 of the AP Reorganisation Act and therefore the question of AP taking away the funds of TS does not arise, he said. Meanwhile, AP Labour Minister K Atchen Naidu demanded the TS government to apologise.