PNS|BVijayawada
The Andhra Pradesh High Court has admitted a Public Interest Litigation (PIL) challenging the State government’s attempts to secure loans worth nearly Rs 9,000 crore by allegedly misusing the name and assets of the Andhra Pradesh Mineral Development Corporation (APMDC). The court issued notices to both the Central and State governments, directing them to file their counter-affidavits within four weeks.
The PIL was filed by YSR Congress Party MLC and general secretary Lella Appi Reddy, who argued that the government’s actions were in violation of constitutional norms and posed a risk to both the financial future of APMDC and the State itself. He requested the court to intervene and stop this alleged misuse.
The case was heard by a Division Bench comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati. Senior advocate P. Veera Reddy presented arguments on behalf of the petitioner.
The PIL stated that the current government under Chief Minister Chandrababu Naidu was pledging the State Treasury as collateral for private loans, thereby allowing private entities direct access to public funds.
It warned that if APMDC failed to repay the loans on time, private lenders would be legally empowered to withdraw money directly from the State Consolidated Fund.
The petition pointed out that this is the first time in Andhra Pradesh’s history that such direct access to the treasury has been enabled for loan repayment. It further stated that APMDC, which was once a financially sound public sector enterprise, is now being pushed toward financial ruin due to irresponsible borrowing practices.
