Stalemate Between Telangana and AP - The Hindu - 11/01/23

Context:
Recently, Andhra Pradesh has approached before the Supreme Court seeking “Just, Reasonable and Equitable Apportionment” of assets and liabilities under the Andhra Pradesh Reorganisation Act 2014.
Relevance:
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About:
-On 2nd June, 2014 the northwestern part of Andhra Pradesh was separated and 29th state Telangana was created.
-The States Reorganisation Act (1956) merged the Telugu-speaking areas of Hyderabad state with the Andhra state to create the enlarged Andhra Pradesh state. The Andhra Pradesh Reorganisation Act (2014) bifurcated Andhra Pradesh (AP) into two separate states, namely, the Andhra Pradesh (residuary) and the Telangana.

->Issues:
1. 12 Institutions not Mentioned in the Act:
The issue involves 245 institutions with a total fixed asset value of ₹1.42 lakh crore. There are 91 institutions under Schedule IX and 142 institutions under Schedule X of the Act.
2. Delays in Division of Assets and Liabilities:
AP laments that the Telangana government had selectively accepted the recommendations given by the expert committee headed by Sheela Bhide, leaving others which was resulting in delays in division of assets and liabilities.
3. Contention over Division of Assets:
The expert committee’s recommendations on the division of assets that are not a part of the headquarter assets attracted criticism from the Telangana government, saying it is against the spirit of the Reorganisation Act.

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