Row over transfer of TS labour dept funds to AP

• Rs.450 crore illegally transferred to AP account
• TS Chief Secy complains to Governor, Centre
• Banks instructed to freeze the money and not release it

Hyderabad: The issue of illegal transfer of Telangana labour department funds amounting to Rs 420 crore to AP government account is snowballing into a major row between both states.

While the TS government claimed that the Chief Secretary swung into action following the instructions of Chief Minister K Chandrasekhar Rao and complained to Governor ESL Narsimhan and urged him to take necessary action, the Communication Advisor to the Government of Andhra Pradesh, Parkala Prabhakar, told the media that the Telangana government had violated all the laws of the land, its traditions and conventions while handling official matter belonging to both the governments. He said the issue was taken up with the Governor and the central government and the Governor summoned the Telangana officials to seek an explanation on Thursday’s issue. He condemned the manner in which the police had manhandled Murali Sagar, a senior official and chief executive officer of AP Building and Other Construction Workers Welfare Board at the behest of the Telangana government.

However, sources said that the TS Chief Secretary had briefed the Governor about the violation by the AP official and the action initiated by the police department in this regard. The CS is understood to have requested the Governor to ensure that AP followed provisions of the AP State Reorganisation Act-2014 in letter and spirit. DGP Anurag Sharma and Hyderabad Police Commissioner M Mahender Reddy also accompanied the Chief Secretary.

Earlier, Rajiv Sharma held a meeting with top officials of around 30 public sector and private banks on this issue and was learnt to have instructed them to freeze release of funds of eighth, ninth and tenth Schedule institutions in AP Reorganization Act and not allow withdrawal of funds unilaterally until the issue was sorted out.

He informed them about the transfer of Rs 420 crore of Telangana Labour department into a Vijayawada based branch and reported attempt to transfer another 200 crore into the same account which was exposed on Thursday. He also told them about diversion of funds belonging to Telangana Excise department to the tune of Rs 80 crore to the successor AP state account and the illegal transfer of another Rs 20 crore from AP Remote Sensing Agency. Chief Secretary stated that these acts were in gross violation of sections of AP State Reorganisation Act. Such an action could be taken only after transferring the due share of Telangana, which is also entitled to the proportionate interest accrued on these deposits. Already a criminal case has been booked against the persons responsible and the matter is under investigation by the police, he said.

The Telangana government advised banks to strictly follow provisions of the Act as any violation in dealing with these funds would lead to stringent action being.

Meanwhile, Telangana employees led by Mahabubnagar MLA V Srinivas Goud staged protest at the Labour Commissionerate. They expressed ire that Telangana Labour department higher officials did not initiate proper measures even though they were alerted six months in advance about chances of misappropriation of funds.