VIJAYAWADA: Public Accounts Committee Chairman Payyavula Keshav on Monday demanded that the YSRC government respond to the Centre’s latest comment that there were ‘prima facie’ constitutional violations in the ‘escrow agreements’ signed by AP to get Rs 25,000 crore loans from national banks through the AP State Development Corporation Ltd (APSDCL).
Speaking to the media, he asked whether the state government would amend the law to withdraw the escrow account based on the Centre’s letter. In that case, its agreements involving Rs 25,000 crore loans would be in danger of becoming invalid, putting a question mark on the legal efficacy of the national banks that were part of these unconstitutional agreements, he said.
He also demanded that the Centre order a thorough probe by the Comptroller and Auditor General (CAG) of India into what he called as the unprecedented financial irregularities by the YSRC government. Describing the government agreeing for an ‘escrow account’ bypassing the State treasury as a glaring constitutional violation, he demanded that the Chief Minister and the Finance Minister come clean on the issue. Payyavula also demanded a high-level enquiry by the national banks into the entire issue.
Questioning the role of the Governor’s office in the issue, the TDP leader wondered when the huge loan was taken in the name of the Governor, why did the latter approve it, instead of using his constitutional right to return the same for legal scrutiny. Even the Disha Act approved at the State level met with obstacles. For the past two years, many serious financial violations took place in AP, but the Centre and various systems did not respond. Even when reports came out about `17,000 crore excess drawal by AP, there was no action. At least now, the Centre, RBI and CAG should plug financial gaps so that the future generations and the banks would not face major difficulties, he demanded.