YS Jagan Blasts TDP Govt for Giving Private Lenders Access To State Treasury
Jagan Slams TDP Govt Over ₹9,000 Cr APMDC Bond Issue
Says TDP Mortgaged ₹1.91 Lakh Cr Govt Property for ₹9,000 Cr Bonds
Ex-CM Alleges Massive Loss to State, Demands Answers
YSRCP president and former Chief Minister YS Jagan Mohan Reddy has once again raised concerns over the State’s fiscal health and accused the TDP-led NDA government of completely disregarding the Constitutional framework and neglecting financial discipline.
In a post on X (formerly Twitter), YS Jagan revealed that the Andhra Pradesh Mineral Development Corporation (APMDC) raised ₹5,526 crore on June 25, 2025, by issuing a second tranche of bonds (NCDs) at an interest rate of 9.30%, bringing the total bond issuance to ₹9,000 crore.
The former Chief Minister noted that the funds were raised despite the matter being admitted by the Andhra Pradesh High Court, with notices already served on both the State and Central governments.
It may be noted that YSRCP MLC Lella Appi Reddy filed a Public Interest Litigation (PIL) in the High Court, alleging that the Chandrababu Naidu-led government violated constitutional norms and endangered the financial stability of both APMDC and the State by pledging the State Treasury as collateral to secure private loans via APMDC. He warned that this could grant private lenders direct access to the Consolidated Fund of the State in case of loan default.
In May, the High Court directed both the State and Centre to file their responses within four weeks.
YS Jagan criticised the State government for raising additional funds while the matter remains sub judice.
He further alleged that the funds raised are intended to finance Government revenue expenditure, which is a violation of fiscal prudence.
Jagan strongly condemned the government’s move to grant private parties access to the Consolidated Fund of the State through an RBI direct debit mandate, calling it a blatant violation of the Constitution.
“Private parties can access the State exchequer and withdraw funds without any involvement from State Government officials. This is a clear violation of Articles 203, 204, and 293(1) of the Constitution of India,” the former Chief Minister said.
Jagan also pointed out that the TDP government mortgaged mineral wealth as additional security for the bond issuance — a move he described as unprecedented and risky.
Exposing the gross disproportionality in the financial decision, he said government property worth ₹1,91,000 crore was mortgaged to raise just ₹9,000 crore through bonds. The value mortgaged is a whopping 21 times higher than the funds raised.
He noted that giving access to the State Consolidated Fund and mortgaging APMDC assets should have made the bonds extremely secure.
“One would imagine these bonds are even more secure than the State Development Loans (SDLs) issued by the government,” he remarked.
However, the government went even further by offering an interest rate of 9.30%, which is 2.60% higher than the prevailing rate for SDLs.
Jagan warned that this high interest rate would cost APMDC an additional ₹235 crore every year for 10 years — the duration of the bond.
Demanding answers from Chief Minister N. Chandrababu Naidu, Jagan asked: “Can @ncbn Garu answer as to who pocketed this?”
He also pointed out that with the TDP government raising over ₹5,000 crore through bond issuances, the total budget and off-budget borrowings in just 13 months have exceeded 50% of the total borrowed by the previous government over a five-year period.
Also read: TDP’s Honeymoon Period Over: YS Jagan Launches ‘Recalling Chandrababu’s Manifesto’ Drive
