TIRUPATI: Tirupati MP Dr M. Gurumoorthy has raised concerns over the reported issuance of non-convertible debentures (NCDs) worth ₹9,000 crore by the Andhra Pradesh Mineral Development Corporation (APMDC), a state-run entity.
Raising the matter in Parliament under Rule 377, the MP described it as a case of constitutional and financial impropriety. He claimed as part of the arrangement the Reserve Bank of India had allegedly permitted a private debenture trustee to directly access funds from the state treasury through a direct debit mechanism.
He asked whether this bypasses Articles 203 and 204 of the Constitution, which require legislative approval for any withdrawal from the state treasury. “Can the central government accept such a deviation?” he asked.
Gurumoorthy further alleged that the funds raised through the debentures were being routed back to the state government under the guise of compensation for mining leases, effectively functioning as a loan.
Citing Article 293(3), he pointed out that state governments already indebted to the Centre cannot take on additional loans without the Centre’s prior approval.
The MP warned that the arrangement appeared to be a deliberate attempt to sidestep financial oversight mechanisms. Urging immediate intervention, he said, “Public funds must be protected, and constitutional procedures must be upheld”. He called on the Union government to act quickly to prevent any further misuse of the state treasury.
Source link
[ad_3]
[ad_4]