Freezing of bank accounts; AP seeks center's intervention
HYDERABAD: The row over the transfer of `398 crore of AP Building and Other Construction Workers' Welfare Board (APBOCWWB), lying in banks in Hyderabad, to their branches in Vijayawada continued to smoulder with the AP government sounding an SOS to the Centre on the 'effrontery' of the Telangana government in asking banks to freeze the accounts of the institutions not bifurcated yet.
The AP government is crying foul over the Union Bank of India freezing Rs 12 crore of APBOCWWB on instructions from the TS government.
AP chief secretary IYR Krishna Rao will be meeting Union Cabinet secretary and home secretary in the next two to three days and formally lodge a complaint against the TS government.
According to AP communication advisor Parakala Prabhakar, banks have written to the AP government that the TS government has asked them to freeze the Board's funds. 'The action of the TS government is violative of the AP Reorganisation Act,' he said.
'On instructions from the TS government, TS police went to the banks and asked them to freeze accounts. How can police officials ask banks to freeze accounts of AP government? Does TS government have a right to do it?' he asked.
He said the transfer of `398 crore to Vijayawada is a non-issue as it was decided at a joint meeting of TS and AP officials held on September 23, in which besides both state chief secretaries, several higher officials were present.
The AP government after slamming the TS government for asking bankers to freeze the accounts of other undivided institutions, has written to bankers who hold the funds of these institutions listed in VII, IX and X schedules of the AP State Reorganisation Act, not to freeze the accounts, but go by the rule position.
In a letter to the bankers, the AP government has asked them to act as per the provisions of the AP Reorganisation Act, 2014, when it comes to transfer of funds from one state to the other.
News Posted: 3 November, 2014
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