Telangana Warns Bankers On Transfer Of Funds To AP

In a meeting held with the senior management - General Managers and above - of both commercial and private banks in the State, Telangana Chief Secretary Dr Rajeev Sharma said that with regards to the bank accounts of the institutions listed in the 8th, 9th and 10th schedules of the AP Reorganization Act of 2014, there had been violations of the provisions of the Act.

In addition to the Chief Secretary, Special Secretary Finance K Ramakrishna Rao and Secretary of Women and Child Welfare Sunil Sharma attended the meeting.

The Chief Secretary brought to the attention of the bankers that several instances of unauthorized transfer of funds of public institutions, and the creation and operation of new bank accounts by persons who are no longer authorized under the provisions of the AP Reorganization Act, had come to the notice of the Government of Telangana.

He said that in many such instances, such persons transferred had huge amounts of money, unauthorized, to different accounts, or had moved them in gross violations of the provisions of AP Reorganization Act, 2014.

It was further brought to their notice that several banks holding the accounts of institutions listed under the 9th and 10th schedules of the AP Reorganization Act, and operating statutory funds under the 8th schedule including the funds for employee welfare, had unilaterally, without consulting the Government of Telangana, transferred amounts out of these to their bank branches situated within the residuary State of Andhra Pradesh.

These funds were continuing from prior to the division of the staff, and their management, distribution and disbursement was governed by the provisions of AP Reorganization Act, he said, adding that these public funds could no longer be operated unilaterally by the successor State of Andhra Pradesh.

All banks were advised to strictly follow the provisions of the Act as any violations in dealing with these funds would lead to stringent action being taken against all parties responsible in this matter, and could entail civil and criminal action.

In a written circular, the Finance Secretary brought other relevant issues to the notice of bankers. (INN)