The Telangana Government was startled by an unauthorised transfer of ₹620 crore to the kitty of the Andhra Pradesh Government by a Labour Department official. Following the incident, the Telangana Government has asked 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 asked bankers to take note of various provisions of the Act, instances of unauthorised transfer of public funds, and creation and operation of new bank accounts by persons, who are no longer unauthorised to so.

A day after the police unearthed the fund transfer from Telangana’s kitty to an account in Andhra Pradesh, Sharma convened a meeting with bankers on Friday.

The bankers were told that, in a gross violation of the Act, funds were being transferred without the knowledge of the Telangana Government. He warned of civil and criminal consequences of such acts. They were given a memorandum with the list of provisions of the Act. “The eighth Schedule of the (Andhra Pradesh Reorganisation Act of 2014) 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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