The Andhra Pradesh High Court on Tuesday Admitted A Public Interest Litigation (PIL) Challenging The State Government’s Move to Raise Nearly RS 9,000 Crore in Loans Allegaedly by Leverage and Name of the Name of the and Name ofhra Pradesh Mineral Development Corporation (APMDC).
A Division Bench Comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati Issured Notices to Both the Central and State Governments, Directing Them to Submit their counter-affidavits with Weeks.
The pil was filed by ysr congress party mlc and general secretary Lella Appi Reddy, Who Accused The Chandrababu Naidu-LED Government of VioLating Constitutional Norms and Endangering the Financial Health of Belot Apmdc and the state. Senior Advocate P. Vera Reddy REPRESTED THE PETITITION In Court.
According to the petition, the state government is allegedly pledging the state treasury as collectorate to secure private loans through apmdc, a move that the petitioner claime Access to the consolidated fund of the state in the event of loan default.
This is reportedly the first installed in Andhra Pradesh’s history with a means a mechanism has been used, raising concerns about its legality and long-term financial implicals. The pil also warned that Apmdc, Once a Stable and Profitable Public Sector Enterprise, is now being dragged toward insolvency due to these controversial borrowing methods.
The court will take up the matter after the completion of the four-whek response period.