PIL Filed Against AP Govt Over Private Access to State’s Consolidated Fund

YSRCP MLC Lella Appi Reddy has filed a Public Interest Litigation (PIL) in the Andhra Pradesh High Court, strongly opposing the state government’s decision to let a private party approach the Reserve Bank of India (RBI) and access the state's Consolidated Fund.

This issue is linked to a proposed Non-Convertible Debenture (NCD) plan by the Andhra Pradesh Mineral Development Corporation (APMDC). In his petition, Appi Reddy said this move is unconstitutional because it skips legislative approval and goes against Articles 203, 204, and 293 of the Indian Constitution. He asked the Court to declare the move illegal and stop any further action on it.

Appi Reddy raised serious concerns that allowing private bondholders or trustees direct access to the state's consolidated fund violates constitutional rules meant to ensure financial transparency and legislative control. He warned that such a step would weaken financial accountability.

The PIL also challenged the government’s decision to give APMDC lease rights over 436 minor mineral quarries without any open tender or competitive bidding. He said this violates the Andhra Pradesh Minor Mineral Concession Rules and opens the door to misuse of public resources.

Additionally, APMDC has reportedly been allowed to mortgage these mineral rights to private companies, who can then transfer or sell them without needing government approval. Appi Reddy described this as a dangerous and illegal handover of state-owned assets.

He urged the High Court to strike down the entire scheme as unconstitutional and arbitrary, and to stop the issuing of NCDs backed by public resources. His petition seeks to protect the state’s assets and ensure they are not misused in private financial deals.