IN a setback to the Telangana government, a division bench of State High Court set aside GO 8 issued by the government on May 6, 2016, which authorises the transfer of ownership of a milk product factory at Lalapet, other dairy buildings, and the Somajiguda guest house, which belong to the erstwhile Andhra Pradesh Dairy Development Cooperative Federation Limited (APDDCF), to the Telangana State Dairy Development Cooperative Federation (TSDDCF).
The bench made it clear that the administrative office, assets and liabilities of erstwhile APDDCF should be shared between the two federations in the ratio 58.32: 41.68, as per proviso to Section 53(1)(b) of the Andhra Pradesh Reorganisation Act, 2014. The State Federation has undertaken business in the name and style of the APDDCF under the aegis of ‘Vijaya’, even after the bifurcation, the court said.
The bench comprising Justices MS Ramachandra Rao and T Vinod Kumar passed this order, while allowing the petition filed by APDDCF challenging the GO issued by the Telangana government on the matter. During the course of hearing, AP advocate general S Sriram contended that Telangana was not empowered to unilaterally transfer any assets of erstwhile APDDCF by issuing GO 8. On the other hand, Telangana advocate general BS Prasad contended that there was no illegality in issuing of the GO.
After hearing the case, the bench set aside the impugned GO. The GO is not supported by any provision of the Act and is contrary to the principle laid down by the Supreme Court with regard to bifurcation of institutions, and also appears to be unilateral, the bench observed.
CAG to help in market valuation
The bench directed the two federations to take assistance from the Comptroller and Auditor General of India for market valuation of the Somajiguda guest house and assets and liabilities of operational units of the erstwhile APDDCF.