Centre says Andhra Pradesh will get share only in head offices in Hyderabad
HYDERABAD: In what appears to be a good news for Telangana and a setback to Andhra Pradesh, the Centre has defined “headquarters” of the institutions listed in Schedule IX of the AP Reorganisation Act, 2014, rejecting AP government’s claim to other office buildings of such institutions in Hyderabad.
As per the Centre’s definition, only headquarters can be bifurcated between the two states and not the other offices of any institutions, which are located in Hyderabad, as was being demanded by AP.
Against the backdrop of AP government’s bid seeking its share in all the offices, including headquarters of institutions listed in Schedule IX in the common capital, the ministry of home affairs in a communication on Saturday defined the term “headquarters”.
“The headquarters i.e., the principal office of the undertaking is to be apportioned on population ratio and the operational units are to be apportioned on location basis,” the Union home ministry stated.
The definition was in accordance with the AP Reorganisation Act, 2014 and it will be advantageous to Telangana. Thus, the definition will help in the bifurcation of IX Schedule institutions, particularly Vijaya Dairy, RTC, Agros and Telangana Foods.
In fact, AP had been arguing for bifurcation of assets of all the units of institutions listed under IX Schedule and located in Hyderabad. When, Telangana objected to it, AP urged the Home Ministry to define the term, “headquarters”, some two years ago.
For instance, if Vijaya Dairy headquarters is located in Hyderabad and the dairy has major unit or office in another location in Hyderabad, AP sought share in both the offices considering both as headquarters.
Likewise, though RTC Bus Bhavan is the headquarters of the RTC, AP also sought share in RTC Hospital located at Tarnaka, bus body building unit and other vacant lands located elsewhere in Hyderabad. But, TS contended AP’s claim. Thus the tussle over “headquarters” reached the Union ministry. After consulting legal experts, the home ministry on Saturday came out with a definition of “headquarters” of an institution.
“The definition of the headquarters in respect of the bifurcation of the assets and liabilities, the institutions/corporations listed under Schedule IX of the AP Reorganisation Act, 2014 has been examined by ministry in consultation with the Solicitor General of India,” the home ministry’s communique stated.
Centre’s verdict
In case of single comprehensive state undertaking exclusively located in, or its operations are confined to one local area, it shall be apportioned on the basis of location as per sub-section (1) of Section 53 of the APRA, 2014
However, if the said state undertaking’s operations are inter-state, then as per the proviso to section 53, the headquarters i.e., the principal office of the Undertaking is to be apportioned on population ratio and the operational units are to be apportioned on location basis
In case of more than one common facility such as workshops, guesthouse and operational plants, such entities cannot be construed to be part of “headquarter”. The term would be coterminous with the principal office of undertaking as per its ordinary dictionary meaning