Startled by unauthorised transfer of Rs 620 crore to the kitty of Andhra Pradesh by a Labour Department official, the Telangana Government has asked the banks in the private and public sector to keep tabs on fund transfers.

Citing the provisions of Andhra Pradesh Reorganisation Act of 2014, Chief Secretary Rajeev Sharma brought to the attention of bankers about the instances of unauthorised transfer of funds of public institutions and creation and operation of new bank accounts by persons, who are no longer authorised under the provisions of the Act.

He convened a meeting with the bankers on Friday, a day after the police unearthed the fund transfer to an account in Andhra Pradesh.

The bankers were told that funds were being transferred without the knowledge of the Telangana Government in gross violation of the Act. He warned of civil and criminal action if they violated the provisions.

They were given a memorandum with the list of provisions of the Act. “The 8th Schedule of the Act has a list of 69 public funds which are broadly classified into three categories, putting provident funds, pension funds, insurance funds, guarantee redemption fund and other funds in different heads.

“Section 52 of the Act has provisions as to how these funds are to be apportioned between the states. The basic principle of apportionment is that of population ratio of the successor States with exceptions for funds such as Calamity Relief Fund or those investments which are confined to a local area,” the memorandum said.

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