Governor’s name in SDC loan papers triggers row

Officials on damage control exercise

Governor Biswa Bhusan Harichandan is believed to have expressed objection to his name reportedly figuring in some loan documents of the Andhra Pradesh State Development Corporation (APSDC), setting senior government officials on a damage control mission.

The Governor’s name has apparently been mentioned against the ‘Address for Notice’ column in the ‘Description of Guarantor’ section, raising concerns on his personal liability with regard to the loans raised by the APSDC, which is mired in litigation in the High Court consequent upon the filing of some PILs including one by Visakhapatnam (East) MLA Velagapudi Ramakrishna Babu.

The TDP MLA and other petitioners questioned the constitutional validity of the APSDC itself and the manner in which it sought to mobilise funds for the implementation of various schemes.

Following the Governor’s objection, government officials are learnt to have initiated corrective measures with Secretary (Finance) K.V.V. Satyanarayana recently informing the court through a common counter that the reference to the Governor’s name in Schedule 3 of the loan guarantee agreement is only incidental to the details provided thereof and does not expose the Governor to potential proceedings in violation of Article 361 of the Constitution.

A complete reading of the terms of the contract would indicate that there is neither an intent nor the consequence of waiver of his (Governor’s) personal immunity.

The deponent is an officer of the State under Article 309 of the Constitution representing the Governor as provided for in various G.O.s related to the APSDC.

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