Mangalagiri: PAC chief Payyavula Keshav accuses Buggana Rajendranath Reddy of lying on Rs 25,000 crore loans

Payyavula Keshav

Payyavula Keshav


  • Keshav says AP's secret guarantees to APSDCL loan from national banks violate Central rules
  • Points out that as per the terms of the guarantees, tax will be directly deposited in bank bypassing AP treasury

Mangalagiri: Assembly Public Accounts Committee (PAC) chairman Payyavula Keshav on Thursday demanded the YSRCP government to explain why it was maintaining secrecy over the 'guarantee' and 'escrow' agreements it had made for taking Rs 25,000 crore of loans from various national banks through the AP State Development Corporation Ltd (APSDCL).

Keshav asked why finance minister Buggana Rajendranath Reddy told lies in an interview with a TV channel three days ago that their government did not give any guarantee to the banks with regard to the APSDCL loans.

Whereas, there were guarantee and escrow agreements on November 5, 2020, which were duly signed by additional secretary of the finance department along with officials of APSDCL, SBI, Indian Bank, Punjab National Bank and SBICAP Trustee Co Ltd.

Releasing copies of these agreements at a press conference here, the PAC chairman said that the YSRCP government had agreed to many objectionable conditions of the banks.

It had even agreed to deposit the additional retail excise tax (ARET) from the liquor depots directly into the escrow bank account bypassing the AP state treasury whereas, the state government has given its affidavit in the High Court that all the APSDCL payments would be routed through the state consolidated fund alone.

Keshav demanded the finance minister to clarify whether these state guarantees for Rs 25,000 crore loans really had the approval of the Central government and the Reserve Bank of India (RBI).

In a very serious violation, the AP government has also agreed to the 'waiver of sovereign guarantee' and gave it in writing to the banks in the name of the Governor of Andhra Pradesh. If anything would go wrong, against whom the banks would be able to file cases in future, he asked.

Keshav termed it as bankrupt on the part of Rajendranath Reddy to say that their government did not give guarantees while the banks say they had got guarantees.

Where was the need for Buggana to hide all these details when his Finance department had given guarantees clearly to the banks, he wondered.

He asked the finance minister to explain who would be accountable if there was a change in government in next elections and if that government would not honour these unlawfully signed agreements to get Rs. 25,000 Cr loans.

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