The division of assets between Telangana and Andhra Pradesh, a long-standing issue since the state bifurcation in 2014, has seen a significant step forward with both states working towards formally dividing assets located in New Delhi. This move aims to resolve the lingering disputes and ensure a fair distribution of resources as per the Andhra Pradesh Reorganisation Act.

Background

The Andhra Pradesh Reorganisation Act, 2014, mandated the division of assets and liabilities between the newly formed Telangana and the residual Andhra Pradesh. However, the implementation of this act has been fraught with disagreements, leading to protracted negotiations and legal challenges. Among the most contentious issues has been the division of properties located outside the states, particularly those in New Delhi, including Andhra Bhavan.

Recent Developments

Recent discussions and agreements have paved the way for a formal division of these New Delhi-based assets. In March 2024, the Union Home Ministry resolved the dispute over the division of land and properties of Andhra Pradesh (AP) Bhavan in New Delhi. Telangana was allocated 8.24 acres, and Andhra Pradesh received 11.536 acres, in accordance with the AP Reorganisation Act, 2014. Telangana will receive three acres in the Sabari Block and 5.245 acres in Pataudi House. Andhra Pradesh will obtain the Godavari Block and Swarna Mukhi Block encompassing 5.781 acres. Additionally, 3.359 acres in the Nursing Hostel and 2.396 acres in Pataudi House have been allocated.

Earlier, in January 2024, Andhra Pradesh and Telangana reached an amicable agreement on the division of Andhra Bhavan properties in New Delhi. As per the agreement, Telangana will leave Andhra Bhavan for Andhra Pradesh. Telangana will get around three acres of land near Sabari Block and AP will get around 5.5 acres of land near Godavari and Swarnamukhi Blocks as per the population ratio. The resident commissioners of AP and Telangana accepted this formula and submitted required documents to the additional secretary Ministry of Home Affairs in Delhi. The MHA will now take a final decision on the matter.

Key Assets and Division Details

The primary asset under consideration is Andhra Bhavan, which includes residential and non-residential buildings. It consists of Sabari, Swarnmukhi, and Godavari blocks. As per the AP Reorganisation Act 2014 Sec 48 (1), properties situated outside the state of Andhra Pradesh should be apportioned in the ratio 58.32:41.68 (AP:TS). Telangana is expected to get around 8.5 acres, including three acres in Sabari and 5.5 acres in Pataudi House. Andhra Pradesh will get the entire Godavari and Swarnamukhi Blocks.

Challenges and Future Steps

Despite the progress, several challenges remain. The division of other institutions and assets listed under Schedules IX and X of the AP Reorganisation Act is still pending. These schedules list various institutions, including public sector undertakings (PSUs), whose assets and liabilities need to be divided between the two states.

The Union Home Ministry has urged both states to expedite the resolution of these pending issues through mutual consensus and legal assistance. The central government has also indicated that it prefers the states to resolve the issues amicably rather than through legal recourse, as the latter could further delay the settlement.

Implications

The formal division of New Delhi-based assets marks a crucial step in resolving the দীর্ঘstanding bifurcation issues between Telangana and Andhra Pradesh. It is expected to foster better cooperation and coordination between the two states, paving the way for smoother governance and development.