THE ANDHRA PRADESH REORGANISATION ACT, 2014

From Advocatespedia, ASSN: 20289
Jump to navigation Jump to search
THE ANDHRA PRADESH REORGANISATION ACT, 2014
Total Sections 109
Enforcement Year 2014
State or Central Central
Editor Template:USERNAME
ASSN: 20289

An Act to provide for the reorganisation of the existing State of Andhra Pradesh and for matters connected therewith. BE it enacted by Parliament in the Sixty-fifth Year of the Republic of India as follows:—


PART I PRELIMINARY


1. Short title.—This Act may be called the Andhra Pradesh Reorganisation Act, 2014.

2. Definitions.—In this Act, unless the context otherwise requires,— (a) ―appointed day‖ means the day1 which the Central Government may, by notification in the Official Gazette, appoint; (b) ―article‖ means an article of the Constitution; (c) ―assembly constituency‖, ―council constituency‖ and ―parliamentary constituency‖ have the same meanings as in the Representation of the People Act, 1950 (43 of 1950); (d) ―Election Commission‖ means the Election Commission appointed by the President under article 324; (e) ―existing State of Andhra Pradesh‖ means the State of Andhra Pradesh as existing immediately before the appointed day; (f) ―law‖ includes any enactment, ordinance, regulation, order, bye-law, rule, scheme, notification or other instrument having, immediately before the appointed day, the force of law in the whole or in any part of the existing State of Andhra Pradesh; (g) ―notified order‖ means an order published in the Official Gazette; (h) ―population ratio‖, in relation to the States of Andhra Pradesh and Telangana, means the ratio of 58.32 : 41.68 as per 2011 Census; (i) ―sitting member‖, in relation to either House of Parliament or of the Legislature of the existing State of Andhra Pradesh, means a person who immediately before the appointed day, is a member of that House; (j) ―successor State‖, in relation to the existing State of Andhra Pradesh, means the State of Andhra Pradesh or the State of Telangana, as the case may be; (k) ―transferred territory‖ means the territory which on the appointed day is transferred from the existing State of Andhra Pradesh to the State of Telangana; (l) ―treasury‖ includes a sub-treasury; and (m) any reference to a district, mandal, tehsil, taluk or other territorial division of the existing State of Andhra Pradesh shall be construed as a reference to the area comprised within that territorial division on the appointed day.


PART II REORGANISATION OF THE STATE OF ANDHRA PRADESH


3. Formation of Telangana State.—On and from the appointed day, there shall be formed a new State to be known as the State of Telangana comprising the following territories of the existing State of Andhra Pradesh, namely:— Adilabad, Karimnagar, Medak, Nizamabad, Warangal, Ranga Reddy, Nalgonda, Mahbubnagar, 1[Khammam (but excluding the Mandals of Kukunoor, Velairpadu and Bhurgampadu but not including its revenue villages of Pinapaka, Morampalli Banzar, Bhurgampad, Nagineniprolu, Krishnasagar, Tekula, Sarapaka, Iravendi, Mothepattinagar, Uppusaka, Sompalli and Nakripeta under the Palvancha Revenue Division, and the Mandals of Chintoor, Kunavaram, Vararamachandrapuram and Bhadrachalam but not including the revenue village of Bhadrachalam under the Bhadrachalam Revenue Division)] and Hyderabad districts, and thereupon the said territories shall cease to form part of the existing State of Andhra Pradesh.


4. State of Andhra Pradesh and territorial divisions thereof.––On and from the appointed day, the State of Andhra Pradesh shall comprise the territories of the existing State of Andhra Pradesh other than those specified in section 3.


5. Hyderabad to be common capital for States of Telangana and Andhra Pradesh.––(1) On and from the appointed day, Hyderabad in the existing State of Andhra Pradesh, shall be the common capital of the State of Telangana and the State of Andhra Pradesh for such period not exceeding ten years. (2) After expiry of the period referred to in sub-section (1), Hyderabad shall be the capital of the State of Telangana and there shall be a new capital for the State of Andhra Pradesh. Explanation.––In this Part, the common capital includes the existing area notified as the Greater Hyderabad Municipal Corporation under the Hyderabad Municipal Corporation Act, 1955 (Hyderabad Act No. 2 of 1956).


6. Expert Committee for setting up of a capital for Andhra Pradesh.—The Central Government shall constitute an expert committee to study various alternatives regarding the new capital for the successor State of Andhra Pradesh and make appropriate recommendations in a period not exceeding six months from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014.


7. Governor of existing State of Andhra Pradesh to be common Governor.—On and from the appointed day, the Governor of the existing State of Andhra Pradesh shall be the Governor for both the successor States of Andhra Pradesh and Telangana for such period as may be determined by the President.


8. Responsibility of Governor to protect residents of common capital of Hyderabad.—(1) On and from the appointed day, for the purposes of administration of the common capital area, the Governor shall have special responsibility for the security of life, liberty and property of all those who reside in such area. (2) In particular, the responsibility of the Governor shall extend to matters such as law and order, internal security and security of vital installations, and management and allocation of Government buildings in the common capital area. (3) In discharge of the functions, the Governor shall, after consulting the Council of Ministers of the State of Telangana, exercise his individual judgment as to the action to be taken: Provided that if any question arises whether any matter is or is not a matter as respects which the Governor is under this sub-section required to act in the exercise of his individual judgment, the decision of the Governor in his discretion shall be final, and the validity of anything done by the Governor shall not be called in question on the ground that he ought or ought not to have acted in the exercise of his individual judgment. (4) The Governor shall be assisted by two advisors to be appointed by the Central Government.


9. Assistance of police forces from Central Government to successor States, etc.—(1) The Central Government shall assist the successor States of Andhra Pradesh and Telangana to raise additional police forces. (2) The Central Government shall, for a period of three years, on and from the appointed day, maintain and administer the Greyhound Training Centre in Hyderabad which shall function as a common training centre for the successor States and, at the expiry of the said period, the existing Greyhound Training Centre in Hyderabad shall become the training centre of the State of Telangana. (3) The Central Government shall assist the successor State of Andhra Pradesh to set up a similar state-of the-art training centre at such place as the State Government of Andhra Pradesh may by order notify. (4) The Central Government shall provide financial assistance to the successor States in setting up new operational hubs for Greyhounds at such locations as the successor States may by order notify. (5) The Greyhound and OCTOPUS forces of the existing State of Andhra Pradesh shall be distributed between the successor States after seeking options from the personnel and, each of these forces, on or after the appointed day shall function under the respective Director General of Police of the successor States.


10. Amendment of First Schedule to Constitution.—On and from the appointed day, in the First Schedule to the Constitution, under the heading ―I. THE STATES’’,–– (a) in the paragraph relating to the territories of the State of Andhra Pradesh, after the words, brackets and figures ―Second Schedule to the Andhra Pradesh and Madras (Alteration of Boundaries) Act, 1959 (56 of 1959)‖, the following shall be inserted, namely:— ―and the territories specified in section 3 of the Andhra Pradesh Reorganisation Act, 2014‖; (b) after entry 28, the following entry shall be inserted, namely:— ―29. Telangana: The territories specified in section 3 of the Andhra Pradesh Reorganisation Act, 2014.‖.


11. Saving powers of State Governments.—Nothing in the foregoing provisions of this Part shall be deemed to affect the power of the Government of Andhra Pradesh or the Government of Telangana to alter, after the appointed day, the name, area or boundaries of any district or other territorial division in the State. PART III REPRESENTATION IN THE LEGISLATURES The Council of States


12. Amendment of Fourth Schedule to Constitution.—On and from the appointed day, in the Fourth Schedule to the Constitution, in the Table,— (a) in entry 1, for the figures ―18‖, the figures ―11‖ shall be substituted; (b) entries 2 to 30 shall be renumbered as entries 3 to 31, respectively; (c) after entry 1, the following entry shall be inserted, namely:— ―2. Telangana 7‖.


13. Allocation of sitting members.—(1) On and from the appointed day, eighteen sitting members of the Council of States representing the existing State of Andhra Pradesh shall be deemed to have been elected to fill the seats allotted to the States of Andhra Pradesh and Telangana, as specified in the First Schedule to this Act. (2) The term of office of such sitting members shall remain unaltered.


House of the People


14. Representation in House of the People.—On and from the appointed day, there shall be allocated 25 seats to the successor State of Andhra Pradesh, and 17 seats to the successor State of Telangana, in the House of the People, and the First Schedule to the Representation of the People Act, 1950 (43 of 1950) shall be deemed to be amended accordingly.


15. Delimitation of Parliamentary and Assembly Constituencies.—(1) On and from the appointed day, the Delimitation of Parliamentary and Assembly Constituencies Order, 2008, shall stand amended as directed in the Second Schedule to this Act. (2) The Election Commission may conduct the elections to the House of the People and the Legislative Assemblies of the successor States of Andhra Pradesh and Telangana as per the allocation of seats specified in the Delimitation of Parliamentary and Assembly Constituencies Order, 2008 as amended by this Act.


16. Provision as to sitting members.—(1) Every sitting member of the House of the People representing a constituency which, on the appointed day by virtue of the provisions of section 14, stands allotted, with or without alteration of boundaries, to the successor States of Andhra Pradesh or Telangana, shall be deemed to have been elected to the House of the People by that constituency as so allotted. (2) The term of office of such sitting members shall remain unaltered.


The Legislative Assembly


17. Provisions as to Legislative Assemblies.—(1) Subject to the provisions of sub-section (2), the number of seats in the Legislative Assemblies of the States of Andhra Pradesh and Telangana, on and from the appointed day, shall be 175 and 119, respectively. (2) In the Second Schedule to the Representation of the People Act, 1950 (43 of 1950), under the heading ―I. STATES‖:— (a) for entry 1, the following entry shall be substituted, namely:—


1 2 3 4 5 6 7 ―1. Andhra Pradesh 294 39 15 175 29 7‖; (b) entries 25 to 28 shall be renumbered as entries 26 to 29, respectively; (c) after entry 24, the following entry shall be inserted, namely:—


1 2 3 4 5 6 7 ―25. Telangana — — — 119 19 12‖.


18. Representation of Anglo-Indian community.— Notwithstanding anything in sub-section (1) of section 17 the Governor of the State may nominate one member each to the Legislative Assemblies of the successor States to give representation to the Anglo-Indian community in accordance with article 333 of the Constitution.

19. Allocation of sitting members.— (1) Every sitting member of the Legislative Assembly of the existing State of Andhra Pradesh elected to fill a seat in that Assembly from a constituency which on the appointed day by virtue of the provisions of section 17 stands allotted, with or without alteration of boundaries, to the State of Telangana shall, on and from that day, cease to be a member of the Legislative Assembly of Andhra Pradesh and shall be deemed to have been elected to fill a seat in the Legislative Assembly of Telangana from that constituency as so allotted. (2) All other sitting members of the Legislative Assembly of the existing State of Andhra Pradesh shall continue to be members of the Legislative Assembly of that State and any such sitting member

representing a constituency, the extent or the name of which are altered by virtue of the provisions of section 17, shall be deemed to have been elected to the Legislative Assembly of Andhra Pradesh by that constituency as so altered. (3) Notwithstanding anything contained in any other law for the time being in force, the Legislative Assemblies of Andhra Pradesh and Telangana shall be deemed to be duly constituted on the appointed day.


20. Duration of Legislative Assemblies.—The period of five years referred to in clause (1) of article 172 shall, in the case of the Legislative Assembly of the State of Andhra Pradesh and of the Legislative Assembly of the State of Telangana, be deemed to have commenced on the date on which it actually commenced in the case of the Legislative Assembly of the existing State of Andhra Pradesh.


21. Speaker, Deputy Speaker and rules of procedure.—(1) The person who immediately before the appointed day is the Speaker of the Legislative Assembly of the existing State of Andhra Pradesh shall continue to be the Speaker of that Assembly on and from that day and the members of that Assembly shall choose from amongst the members of the Assembly, a member to be the Deputy Speaker of that Assembly. (2) As soon as may be after the appointed day, the Deputy Speaker of the Legislative Assembly of the existing State of Andhra Pradesh shall become the Deputy Speaker of the Legislative Assembly of the successor State of Telangana and until the Speaker is chosen by that Assembly, the duties of the office of the Speaker shall be performed by the Deputy Speaker so appointed. (3) The rules of procedure and conduct of business of the Legislative Assembly of Andhra Pradesh as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Assembly of Telangana, subject to such modifications and adaptations as may be made therein by the speaker thereof. The Legislative Councils 22. Legislative Council for successor States.— (1) There shall be constituted a Legislative Council for each of the successor States consisting of not more than 1[58 members in the Legislative Council of Andhra Pradesh] and 40 members in the Legislative Council of Telangana in accordance with the provisions contained in article 169 of the Constitution. (2) The existing Legislative Council of the State of Andhra Pradesh shall, on and from the appointed day, be deemed to have been constituted as two Legislative Councils of the successor States and the existing members shall be allotted to the Councils as specified in the Fourth Schedule.


23. Provisions as to Legislative Councils.— (1) On and from the appointed day, there shall be 2[58 seats in the Legislative Council of Andhra Pradesh] and 40 seats in the Legislative Council of Telangana, respectively. (2) In the Representation of the People Act, 1950 (43 of 1950),––

24. Amendment of Delimitation of Council Constituencies Order.—(1) On and from the appointed day, the Delimitation of Council Constituencies (Andhra Pradesh) Order, 2006 shall stand amended as directed in Part I of the Third Schedule. (2) On and from the appointed day, the Delimitation of Council Constituencies (Telangana) Order, 2014, as specified in Part II of the Third Schedule shall apply to the successor State of Telangana. (3) The Central Government may, in consultation with the successor States of Andhra Pradesh, or as the case may be, Telangana, by notification in the Official Gazette amend the Third Schedule.


25. Chairman, Deputy Chairman and rules of procedure.—(1) The person who immediately before the appointed day is the Chairman of the Legislative Council of the existing State of Andhra Pradesh shall continue to be the Chairman of that Council on and from that day and the members of that Council shall choose from amongst the members of the Council, a member to be the Deputy Chairman of that Council. (2) As soon as may be after the appointed day, the Deputy Chairman of the Legislative Council of the existing State of Andhra Pradesh shall become the Deputy Chairman of the Legislative Council of the successor State of Telangana and until the Chairman is chosen by that Council, the duties of the office of Chairman shall be performed by the Deputy Chairman so appointed. (3) The rules of procedure and conduct of business of the Legislative Council of Andhra Pradesh as in force immediately before the appointed day shall, until rules are made under clause (1) of article 208, be the rules of procedure and conduct of business of the Legislative Council of Telangana, subject to such modifications and adaptations as may be made therein by the Chairman thereof.

Delimitation of constituencies


26. Delimitation of constituencies.—(1) Subject to the provisions contained in article 170 of the Constitution and without prejudice to section 15 of this Act, the number of seats in the Legislative Assembly of the successor States of Andhra Pradesh and Telangana shall be increased from 175 and 119 to 225 and 153, respectively, and delimitation of the constituencies may be determined by the Election Commission in the manner hereinafter provided— (a) the number of seats to be reserved for the Scheduled Castes and the Scheduled Tribes in the Legislative Assemblies of the States of Andhra Pradesh and Telangana, respectively, having regard to the relevant provisions of the Constitution; (b) the assembly constituencies into which each State referred to in clause (a) shall be divided, the extent of each of such constituencies and in which of them seats shall be reserved for the Scheduled Castes or for the Scheduled Tribes; and (c) the adjustments in the boundaries and description of the extent of the parliamentary constituencies in each State referred to in clause (a) that may be necessary or expedient.

(2) In determining the matters referred to in clauses (b) and (c) of sub-section (1), the Election Commission shall have regard to the following provisions, namely: –– (a) all the constituencies shall be single-member constituencies; (b) all constituencies shall, as far as practicable, be geographically compact areas, and in delimiting them, regard shall be had to physical features, existing boundaries of administrative units, facilities of communication and conveniences to the public; and (c) constituencies in which seats are reserved for the Scheduled Castes and the Scheduled Tribes shall, as far as practicable, be located in areas where the proportion of their population to the total population is the largest. (3) The Election Commission shall, for the purpose of assisting it in the performance of its functions under sub-section (1), associate with itself as associate members, five persons as the Central Government may by order specify, being persons who are the members of the Legislative Assembly of the State or of the House of the People representing the State: Provided that none of the associate members shall have a right to vote or to sign any decision of the Election Commission. (4) If, owing to death or resignation, the office of an associate member falls vacant, it shall be filled as far as practicable, in accordance with the provisions of sub-section (3). (5) The Election Commission shall–– (a) publish its proposals for the delimitation of constituencies together with the dissenting proposals, if any, of any associate member who desires publication thereof in the Official Gazette and in such other manner as the Commission may consider fit, together with a notice inviting objections and suggestions in relation to the proposals and specifying a date on or after which the proposals will be further considered by it; (b) consider all objections and suggestions which may have been received by it before the date so specified; and (c) after considering all objections and suggestions which may have been received by it before the date so specified, determine by one or more orders the delimitation of constituencies and cause such order or orders to be published in the Official Gazette, and upon such publication, the order or orders shall have the full force of law and shall not be called in question in any court. (6) As soon as may be after such publication, every such order relating to assembly constituencies shall be laid before the Legislative Assembly of the concerned State.


27. Power of Election Commission to maintain Delimitation Orders up-to date.––(1) The Election Commission may, from time to time, by notification in the Official Gazette,— (a) correct any printing mistakes in any order made under section 26 or any error arising therein from inadvertent slip or omission; and (b) where the boundaries or name of any territorial division mentioned in any such order or orders is or are altered, make such amendments as appear to it to be necessary or expedient for bringing such order up-to-date. (2) Every notification under this section relating to an assembly constituency shall be laid, as soon as may be after it is issued, before the concerned Legislative Assembly.


Scheduled Castes and Scheduled Tribes


28. Amendment of Scheduled Castes Order.––On and from the appointed day, the Constitution (Scheduled Castes) Order, 1950 (C.O. 19), shall stand amended as directed in the Fifth Schedule to this Act.


29. Amendment of Scheduled Tribes Order.––On and from the appointed day, the Constitution (Scheduled Tribes) Order, 1950 (C.O. 22), shall stand amended as directed in the Sixth Schedule to this Act. PART IV

HIGH COURT


30. High Court of Judicature at Hyderabad to be common High Court till establishment of High Court of Andhra Pradesh.––(1) On and from the appointed day,–– (a) the High Court of Judicature at Hyderabad shall be the common High Court for the State of Telangana and the State of Andhra Pradesh till a separate High Court for the State of Andhra Pradesh is constituted under article 214 of the Constitution read with section 31 of this Act; (b) the Judges of the High Court at Hyderabad for the existing State of Andhra Pradesh holding office immediately before the appointed day shall become on that day the Judges of the common High Court. (2) The expenditure in respect of salaries and allowances of the Judges of the common High Court shall be allocated amongst the States of Andhra Pradesh and Telangana on the basis of population ratio.


31. High Court of Andhra Pradesh.––(1) Subject to the provisions of section 30, there shall be a separate High Court for the State of Andhra Pradesh (hereinafter referred to as the High Court of Andhra Pradesh) and the High Court of Judicature at Hyderabad shall become the High Court for the State of Telangana (hereinafter referred to as the High Court at Hyderabad). (2) The principal seat of the High Court of Andhra Pradesh shall be at such place as the President may, by notified order, appoint. (3) Notwithstanding anything contained in sub-section (2), the Judges and division courts of the High Court of Andhra Pradesh may sit at such other place or places in the State of Andhra Pradesh other than its principal seat as the Chief Justice may, with the approval of the Governor of Andhra Pradesh, appoint.


32. Judges of Andhra Pradesh High Court.––(1) Such of the Judges of the High Court at Hyderabad holding office immediately before the date of establishment of the High Court of Andhra Pradesh as may be determined by the President, shall, from that date cease to be Judges of the High Court at Hyderabad and become, Judges of the High Court of Andhra Pradesh. (2) The persons who by virtue of sub-section (1) become Judges of the High Court of Andhra Pradesh shall, except in the case where any such person is appointed to be the Chief Justice of that High Court, rank in that Court according to the priority of their respective appointments as Judges of the High Court at Hyderabad.


33. Jurisdiction of Andhra Pradesh High Court.––The High Court of Andhra Pradesh shall have, in respect of any part of the territories included in the State of Andhra Pradesh, all such jurisdiction, powers and authority as, under the law in force immediately before the date referred to in sub-section (1) of section 30, are exercisable in respect of that part of the said territories by the High Court at Hyderabad.


34. Special provision relating to Bar Council and advocates.––(1) On and from the date referred to in sub-section (1) of section 30, in the Advocates Act, 1961 (25 of 1961), in section 3, in sub-section (1), in clause (a), for the words ―Rajasthan, Uttar Pradesh‖, the words ―Rajasthan, Telangana, Uttar Pradesh‖ shall be substituted. (2) Any person who immediately before the date referred to in sub-section (1) of section 30 is an advocate on the roll of the Bar Council of the existing State of Andhra Pradesh and practising as an advocate in the High Court at Hyderabad, may give his option in writing, within one year from that date to the Bar Council of such existing State, to transfer his name on the roll of the Bar Council of Telangana and notwithstanding anything contained in the Advocates Act, 1961 (25 of 1961) and the rules made thereunder, on such option so given his name shall be deemed to have been transferred on the roll of the Bar Council of Telangana with effect from the date of the option so given for the purposes of the said Act, and the rules made thereunder. (3) The persons other than the advocates who are entitled immediately before the date referred to in sub-section (1) of section 30, to practise in the High Court at Hyderabad or any subordinate court thereof shall, on and after that date, be recognised as such persons entitled also to practise in the High Court of Andhra Pradesh or any subordinate court thereof, as the case may be. (4) The right of audience in the High Court of Andhra Pradesh shall be regulated in accordance with the like principles as immediately before the date referred to in sub-section (1) of section 30, are in force with respect to the right of audience in the High Court at Hyderabad.


35. Practice and procedure in Andhra Pradesh High Court.––Subject to the provisions of this Part, the law in force immediately before the date referred to in sub-section (1) of section 30 with respect to practice and procedure in the High Court at Hyderabad shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh, and accordingly, the High Court of Andhra Pradesh shall have all such powers to make rules and orders with respect to practice and procedure as are immediately before that date exercisable by the High Court at Hyderabad: Provided that any rules or orders which are in force immediately before the date referred to in sub- section (1) of section 30 with respect to practice and procedure in the High Court at Hyderabad shall, until varied or revoked by rules or orders made by the High Court of Andhra Pradesh, apply with the necessary modifications in relation to practice and procedure in the High Court of Andhra Pradesh as if made by that Court.


36. Custody of seal of Andhra Pradesh High Court.––The law in force immediately before the date referred to in sub-section (1) of section 30 with respect to the custody of the seal of the High Court at Hyderabad shall, with the necessary modifications, apply with respect to the custody of the seal of the High Court of Andhra Pradesh.

37. Form of writs and other processes.––The law in force immediately before the date referred to in sub-section (1) of section 30 with respect to the form of writs and other processes used, issued or awarded by the High Court at Hyderabad shall, with the necessary modifications, apply with respect to the form of writs and other processes used, issued or awarded by the High Court of Andhra Pradesh.


38. Powers of Judges.––The law in force immediately before the date referred to in sub-section (1) of section 30 relating to the powers of the Chief Justice, single Judges and division courts of the High Court at Hyderabad and with respect to all matters ancillary to the exercise of those powers shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh.


39. Procedure as to appeals to Supreme Court.–– The law in force immediately before the date referred to in sub-section (1) of section 30 relating to appeals to the Supreme Court from the High Court at Hyderabad and the Judges and division courts thereof shall, with the necessary modifications, apply in relation to the High Court of Andhra Pradesh.


40. Transfer of proceedings from Hyderabad High Court to Andhra Pradesh High Court.––(1) Except as hereinafter provided, the High Court at Hyderabad shall, as from the date referred to in sub- section (1) of section 30, have no jurisdiction in respect of the State of Andhra Pradesh. (2) Such proceedings pending in the High Court at Hyderabad immediately before the date referred to in sub-section (1) of section 30 as are certified, whether before or after that day, by the Chief Justice of that High Court, having regard to the place of accrual of the cause of action and other circumstances, to be proceedings which ought to be heard and decided by the High Court of Andhra Pradesh shall, as soon as may be after such certification, be transferred to the High Court of Andhra Pradesh. (3) Notwithstanding anything contained in sub-sections (1) and (2) of this section or in section 33, but save as hereinafter provided, the High Court at Hyderabad shall have, and the High Court of Andhra Pradesh shall not have, jurisdiction to entertain, hear or dispose of appeals, applications for leave to the Supreme Court, applications for review and other proceedings where any such proceedings seek any relief in respect of any order passed by the High Court at Hyderabad before the date referred to in sub-section (1) of section 30: Provided that if after any such proceedings have been entertained by the High Court at Hyderabad, it appears to the Chief Justice of that High Court that they ought to be transferred to the High Court of Andhra Pradesh, he shall order that they shall be so transferred, and such proceedings shall thereupon be transferred accordingly. (4) Any order made by the High Court at Hyderabad–– (a) before the date referred to in sub-section (1) of section 30, in any proceedings transferred to the High Court of Andhra Pradesh by virtue of sub-section (2), or (b) in any proceedings with respect to which the High Court at Hyderabad retains jurisdiction by virtue of sub-section (3), shall for all purposes have effect, not only as an order of the High Court at Hyderabad, but also as an order made by the High Court of Andhra Pradesh.


41. Right to appear or to act in proceedings transferred to Andhra Pradesh High Court.––Any person who, immediately before the date referred to in sub-section (1) of section 30, is an advocate entitled to practise or any other persons entitled to practise in the High Court at Hyderabad and was authorised to appear in any proceedings transferred from that High Court to the High Court of Andhra Pradesh under section 40, shall have the right to appear in the High Court of Andhra Pradesh in relation to those proceedings.


42. Interpretation.––For the purposes of section 40,–– (a) proceedings shall be deemed to be pending in a court until that court has disposed of all issues between the parties, including any issues with respect to the taxation of the costs of the proceedings and shall include appeals, applications for leave to appeal to the Supreme Court, applications for review, petitions for revision and petitions for writs; and (b) references to a High Court shall be construed as including references to a Judge or division court thereof, and references to an order made by a court or a Judge shall be construed as including references to a sentence, judgment or decree passed or made by that court or Judge.

43. Savings.––Nothing in this Part shall affect the application to the High Court of Andhra Pradesh of any provisions of the Constitution, and this Part shall have effect subject to any provision that may be made on or after the date referred to in sub-section (1) of section 30 with respect to that High Court by any Legislature or other authority having power to make such provision.

PART V AUTHORISATION OF EXPENDITURE AND DISTRIBUTION OF REVENUES


44. Authorisation of expenditure of Telangana State.––The Governor of existing State of Andhra Pradesh may, at any time before the appointed day, authorise such expenditure from the Consolidated Fund of the State of Telangana as he deems necessary for any period not more than six months beginning with the appointed day pending the sanction of such expenditure by the Legislative Assembly of the State of Telangana: Provided that the Governor of Telangana may, after the appointed day, authorise such further expenditure as he deems necessary from the Consolidated Fund of the State of Telangana for any period not extending beyond the said period of six months.


45. Reports relating to accounts of Andhra Pradesh State.––(1) The reports of the Comptroller and Auditor-General of India referred to in clause (2) of article 151 relating to the accounts of the existing State of Andhra Pradesh in respect of any period prior to the appointed day shall be submitted to the Governor of each of the successor States of Andhra Pradesh and Telangana who shall cause them to be laid before the Legislature of that State.

(2) The President may by order–– (a) declare any expenditure incurred out of the Consolidated Fund of Andhra Pradesh on any service in respect of any period prior to the appointed day during the financial year or in respect of any earlier financial year in excess of the amount granted for that service and for that year as disclosed in the reports referred to in sub-section (1) to have been duly authorised; and (b) provide for any action to be taken on any matter arising out of the said reports.


46. Distribution of revenue.––(1)The award made by the Thirteenth Finance Commission to the existing State of Andhra Pradesh shall be apportioned between the successor States by the Central Government on the basis of population ratio and other parameters: Provided that on the appointed day, the President shall make a reference to the Fourteenth Finance Commission to take into account the resources available to the successor States and make separate awards for each of the successor States. (2) Notwithstanding anything in sub-section (1), the Central Government may, having regard to the resources available to the successor State of Andhra Pradesh, make appropriate grants and also ensure that adequate benefits and incentives in the form of special development package are given to the backward areas of that State. (3) The Central Government shall, while considering the special development package for the successor State of Andhra Pradesh, provide adequate incentives, in particular for Rayalaseema and north coastal regions of that State.

PART VI APPORTIONMENT OF ASSETS AND LIABILITIES


47. Application of Part.––(1) The provisions of this Part shall apply in relation to the apportionment of the assets and liabilities of the existing State of Andhra Pradesh immediately before the appointed day. (2) The successor States shall be entitled to receive benefits arising out of the decisions taken by the existing State of Andhra Pradesh and the successor States shall be liable to bear the financial liabilities arising out of the decisions taken by the existing State of Andhra Pradesh. (3) The apportionment of assets and liabilities shall be subject to such financial adjustment as may be necessary to secure just, reasonable and equitable apportionment of the assets and liabilities amongst the successor States. (4) Any dispute regarding the amount of financial assets and liabilities shall be settled through mutual agreement, failing which by order by the Central Government on the advice of the Comptroller and Auditor-General of India.


48. Land and goods.––(1) Subject to the other provisions of this Part, all land and all stores, articles and other goods belonging to the existing State of Andhra Pradesh shall,— (a) if within the transferred territory, pass to the State of Telangana; or (b) in any other case, remain the property of the State of Andhra Pradesh: Provided that in case of properties situated outside the existing State of Andhra Pradesh, such properties shall be apportioned between the successor States on the basis of population ratio: Provided further that where the Central Government is of opinion that any goods or class of goods should be distributed among the States of Andhra Pradesh and Telangana, otherwise than according to the situation of the goods, the Central Government may issue such directions as it thinks fit for a just and equitable distribution of the goods and the goods shall pass to the successor States accordingly: Provided also that in case of any dispute relating to the distribution of any goods or class of goods under this sub-section, the Central Government shall endeavour to settle such dispute through mutual agreement arrived at between the Governments of the successor States for that purpose, failing which the Central Government may, on request by any of the Governments of the successor States, after consulting the Governments of the successor States, issue such direction as it may deem fit for the distribution of such goods or class of goods, as the case may be, under this sub-section. (2) Stores held for specific purposes, such as use or utilisation in particular institutions, workshops or undertakings or on particular works under construction, shall pass to the successor States in whose territories such institutions, workshops, undertakings or works are located. (3) Stores relating to the Secretariat and offices of Heads of Departments having jurisdiction over the whole of the existing State of Andhra Pradesh shall be divided between the successor States on the basis of population ratio. (4) In this section, the expression ―land‖ includes immovable property of every kind and any rights in or over such property, and the expression ―goods‖ does not include coins, bank notes and currency notes.


49. Treasury and bank balances.––The total of the cash balances in all treasuries of the existing State of Andhra Pradesh and the credit balances of the existing State of Andhra Pradesh with the Reserve Bank of India, the State Bank of India or any other bank immediately before the appointed day shall be divided between the States of Andhra Pradesh and Telangana on the basis of population ratio: Provided that for the purposes of such division, there shall be no transfer of cash balances from any treasury to any other treasury and the apportionment shall be effected by adjusting the credit balances of the two States in the books of the Reserve Bank of India on the appointed day: Provided further that if the State of Telangana has no account on the appointed day with the Reserve Bank of India, the adjustment shall be made in such manner as the Central Government may, by order, direct.


50. Arrears of taxes.––The right to recover arrears of the tax or duty on property, including arrears of land revenue, shall belong to the successor State in which the property is situated, and the right to recover arrears of any other tax or duty shall belong to the successor State in whose territories the place of assessment of that tax or duty is included on the appointed day.


51. Right to recover loans and advances.––(1) The right of the existing State of Andhra Pradesh to recover any loans or advances made before the appointed day to any local body, society, agriculturist or other person in an area within that State shall belong to the successor State in which that area is included on that day. (2) The right of the existing State of Andhra Pradesh to recover any loans or advances made before the appointed day to any person or institution outside that State shall belong to the State of Andhra Pradesh: Provided that any sum recovered in respect of any such loan or advance shall be divided between the States of Andhra Pradesh and Telangana on the basis of population ratio.


52. Investments and credits in certain funds.––(1) The securities held in respect of the investments made from Cash Balances Investment Account or from any Fund in the Public Account of the existing State of Andhra Pradesh as specified in the Seventh Schedule shall be apportioned on the basis of population ratio of the successor States: Provided that the securities held in investments made from the Calamity Relief Fund of the existing State of Andhra Pradesh shall be divided in the ratio of the area of the territories occupied by the successor States. (2) The investments of the existing State of Andhra Pradesh immediately before the appointed day in any special fund, the objects of which are confined to a local area, shall belong to the State in which that area is included on the appointed day: Provided that the investments in such special funds on multiple entities situated in different parts of the existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana, shall be apportioned between the successor States on the basis of population ratio. (3) The investments of the existing State of Andhra Pradesh immediately before the appointed day in any private, commercial or industrial undertaking, the objects of which are confined to a local area, shall belong to the successor State in which such area is included on the appointed day: Provided that investments in such entities, having multiple units situated in different parts of the existing State, and such parts fall within the territories of the States of Andhra Pradesh and Telangana, shall be apportioned between the successor States on the basis of population ratio. (4) Where any body corporate constituted under a Central Act, State Act or Provincial Act for the existing State of Andhra Pradesh or any part thereof has, by virtue of the provisions of Part II, become an inter-State body corporate, the investments in, or loans or advances to, any such body corporate by the existing State of Andhra Pradesh made before the appointed day shall, save as otherwise expressly provided by or under this Act, be divided between the States of Andhra Pradesh and Telangana in the same proportion in which the assets of the body corporate are divided under the provisions of this Part.


53. Assets and liabilities of State undertakings.––(1) The assets and liabilities relating to any commercial or industrial undertaking of the existing State of Andhra Pradesh, where such undertaking or part thereof is exclusively located in, or its operations are confined to, a local area, shall pass to the State in which that area is included on the appointed day, irrespective of the location of its headquarters: Provided that where the operation of such undertaking becomes inter-State by virtue of the provisions of Part II, the assets and liabilities of–– (a) the operational units of the undertaking shall be apportioned between the two successor States on location basis; and (b) the headquarters of such undertaking shall be apportioned between the two successor States on the basis of population ratio. (2) Upon apportionment of the assets and liabilities, such assets and liabilities shall be transferred in physical form on mutual agreement or by making payment or adjustment through any other mode as may be agreed to by the successor States.


54. Public Debt.––(1) All liabilities on account of Public Debt and Public Account of the existing State of Andhra Pradesh outstanding immediately before the appointed day shall be apportioned on the basis of population ratio of the successor States unless a different mode of apportionment is provided under the provisions of this Act. (2) The individual items of liabilities to be allocated to the successor States and the amount of contribution required to be made by one successor State to another shall be such as may be ordered by the Central Government on the advice of the Comptroller and Auditor-General of India: Provided that till such orders are issued, the liabilities on account of Public Debt and Public Account of the existing State of Andhra Pradesh shall continue to be the liabilities of the successor State of Andhra Pradesh. (3) The liability on account of loan raised from any source and re-lent by the existing State of Andhra Pradesh to such entities as may be specified by the Central Government and whose area of operation is confined to either of the successor States shall devolve on the respective States as specified in sub-section (4). (4) The public debt of the existing State of Andhra Pradesh attributable to loan taken from any source for the express purpose of re-lending the same to a specific institution and outstanding immediately before the appointed day shall,— (a) if re-lent to any local body, body corporate or other institution in any local area, be the debt of the State in which the local area is included on the appointed day; or (b) if re-lent to any other corporation or institution which becomes an inter- State corporation or institution on the appointed day, be divided between the States of Andhra Pradesh and Telangana in the same proportion in which the assets of such body corporate or institution are divided under the provisions of Part VII. (5) Where a sinking fund or a depreciation fund is maintained by the existing State of Andhra Pradesh for repayment of any loan raised by it, the securities held in respect of investments made from that fund shall be divided between the successor States of Andhra Pradesh and Telangana in the same proportion in which the total public debt is divided between the two States under this section. (6) In this section, the expression ―Government security‖ means a security created and issued by a State Government for the purpose of raising a public loan and having any of the forms specified in, or prescribed under, clause (2) of section 2 of the Public Debt Act, 1944 (18 of 1944).


55. Floating Debt.—All liabilities of the existing State of Andhra Pradesh in respect of any floating loan to provide short term finance to any local body, body corporate or other institution, shall be determined on the following basis, namely:–– (a) if, the purposes of the floating loan are, on and from the appointed day, exclusive purposes of either of the successor States, then, of that State; (b) in any other case, it shall be divided on the basis of population ratio. 56. 57. Refund of taxes collected in excess.—(1) The liability of the existing State of Andhra Pradesh to refund any tax or duty on property, including land revenue, collected in excess shall be the liability of the successor State in whose territories the property is situated, and the liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in excess shall be apportioned between the Successor States of Andhra Pradesh and Telangana on the basis of population ratio and the State discharging the liability shall be entitled to receive from the other State its share of the liability, if any. (2) The liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in excess on the appointed day shall be the liability of the successor State in whose territories the place of assessment of such tax or duty is included, and the liability of the existing State of Andhra Pradesh to refund any other tax or duty collected in excess shall be apportioned between the Successor States of Andhra Pradesh and Telangana on the basis of population ratio and the State discharging the liability shall be entitled to receive from the other State its share of the liability, if any.


58. Deposits, etc.—(1) The liability of the existing State of Andhra Pradesh in respect of any civil deposit or local fund deposit shall, as from the appointed day, be the liability of the successor State in whose area the deposit has been made. (2) The liability of the existing State of Andhra Pradesh in respect of any charitable or other endowment shall, as from the appointed day, be the liability of the successor State in whose area the institution entitled to the benefit of the endowment is located or of the successor State to which the objects of the endowment, under the terms thereof, are confined: Provided that any civil deposits or loan funds or charitable or other endowment fund maintained by the existing State of Andhra Pradesh before the appointed day having jurisdiction over the entire State shall be apportioned between the successor States on the basis of population ratio.


59. Provident Fund.—The liability of the existing State of Andhra Pradesh in respect of the Provident Fund account of a Government servant in service on the appointed day shall, as from that day, be the liability of the successor State to which that Government servant is permanently allotted.


60. Pensions.—The liability of the existing State of Andhra Pradesh in respect of pensions shall pass to, or be apportioned between, the successor States of Andhra Pradesh and Telangana in accordance with the provisions contained in the Eighth Schedule to this Act.


61. Contracts.—(1) Where, before the appointed day, the existing State of Andhra Pradesh has made any contract in the exercise of its executive power for any purposes of the State, that contract shall,–– (a) if the purposes of the contract are, on and from the appointed day, exclusive purposes of either of the successor States of Andhra Pradesh and Telangana, then it shall be deemed to have been made in exercise of the executive power of that State and the liability shall be discharged by that State; and (b) in any other case, all rights and liabilities which have accrued or may accrue under any such contract shall be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States. (2) For the purposes of this section, there shall be deemed to be included in the liabilities which have accrued or may accrue under any contract–– (a) any liability to satisfy an order or award made by any court or other tribunal in proceedings relating to the contract; and (b) any liability in respect of expenses incurred in or in connection with any such proceedings. (3) This section shall have effect subject to the other provisions of this Part relating to the apportionment of liabilities in respect of loans, guarantees and other financial obligations; and the bank balances and securities shall, notwithstanding that they partake of the nature of contractual rights, be dealt with under those provisions.


62. Liability in respect of actionable wrong.—Where, immediately before the appointed day, the existing State of Andhra Pradesh is subject to any liability in respect of any actionable wrong other than breach of contract, that liability shall,–– (a) if the cause of action arose wholly within the territories which, as from that day, are the territories of either of the successor States of Andhra Pradesh or Telangana, be the liability of that State; and (b) in any other case, be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States.


63. Liability as guarantor.—Where, immediately before the appointed day, the existing State of Andhra Pradesh is liable as guarantor in respect of any liability of a registered co-operative society or other person, that liability shall,— (a) if the area of operations of such society or persons is confined to the territories which, as from that day, are the territories of either of the States of Andhra Pradesh or Telangana, be a liability of that State; and (b) in any other case, be apportioned between the successor States on the basis of population ratio or in any other manner as may be agreed to by the successor States.


64. Items in suspense.—If any item in suspense is ultimately found to affect an asset or liability of the nature referred to in any of the foregoing provisions of this Part, it shall be dealt with in accordance with that provision.


65. Residuary provision.—The benefit or burden of any asset or liability of the existing State of Andhra Pradesh not dealt with in the foregoing provisions of this Part shall pass to the State of Andhra Pradesh in the first instance, subject to such financial adjustment as may be agreed upon between the States of Andhra Pradesh and Telangana or, in default of such agreement, as the Central Government may, by order, direct.


66. Apportionment of assets or liabilities by agreement.—Where the successor States of Andhra Pradesh and Telangana agree that the benefit or burden of any particular asset or liability should be apportioned between them in a manner other than that provided for in the foregoing provisions of this Part, notwithstanding anything contained therein, the benefit or burden of that asset or liability shall be apportioned in the manner agreed upon.


67. Power of Central Government to order allocation or adjustment in certain cases.—Where, by virtue of any of the provisions of this Part, either of the successor States of Andhra Pradesh and Telangana becomes entitled to any property or obtains any benefits or becomes subject to any liability, and the Central Government is of opinion, on a reference made within a period of three years from the appointed day by either of the States, that it is just and equitable that such property or those benefits should be transferred to, or shared with, the other successor State, or that a contribution towards that liability should be made by the other successor State, the said property or benefits shall be allocated in such manner between the two States, or the other State shall make to the State subject to the liability such contribution in respect thereof, as the Central Government may, after consultation with the two State Governments, by order, determine.


68. Certain expenditure to be charged on Consolidated Fund.—All sums payable by the State of Andhra Pradesh or by the State of Telangana, as the case may be, to the other State, or by the Central Government to the successor States, by virtue of the provisions of this Act, shall be charged on the Consolidated Fund of the State by which such sums are payable or, as the case may be, the Consolidated Fund of India.

PART VII PROVISIONS AS TO CERTAIN CORPORATIONS


69. Provisions for various companies and corporations.—(1) The companies and corporations specified in the Ninth Schedule constituted for the existing State of Andhra Pradesh shall, on and from the appointed day, continue to function in those areas in respect of which they were functioning immediately before that day, subject to the provisions of this section. (2) The assets, rights and liabilities of the companies and corporations referred to in sub-section (1) shall be apportioned between the successor States in the manner provided in section 53.


70. Continuance of arrangements in regard to generation and supply of electric power and supply of water.—If it appears to the Central Government that the arrangement in regard to the generation or supply of electric power or the supply of water for any area or in regard to the execution of any project for such generation or supply has been or is likely to be modified to the disadvantage of that area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the power stations and other installations for the generation and supply of such power, or the catchment area, reservoirs and other works for the supply of water, as the case may be, are located, the Central Government may, after consultation with the Governments of the successor States wherever necessary, give such directions as it deems proper to the State Government or other authority concerned for the maintenance, so far as practicable, of the previous arrangement and the State to which such directions are given shall comply with them.


71. Provisions as to Andhra Pradesh State Financial Corporation.—(1) The Andhra Pradesh State Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, on and from the appointed day, continue to function in those areas in respect of which it was functioning immediately before that day, subject to the provisions of this section and to such directions as may, from time to time, be issued by the Central Government. (2) Any directions issued by the Central Government under sub-section (1) in respect of the Corporation may include a direction that the said Act, in its application to the Corporation, shall have effect subject to such exceptions and modifications as may be specified in the direction. (3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors of the Corporation may, with the previous approval of the Central Government and shall, if so required by the Central Government, convene at any time after the appointed day a meeting for the consideration of a scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation, including proposals regarding the formation of new Corporations, and the transfer thereto of the assets, rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting by a resolution passed by a majority of the shareholders present and voting, the scheme shall be submitted to the Central Government for its sanction. (4) If the scheme is sanctioned by the Central Government either without modifications or with modifications which are approved at a general meeting, the Central Government shall certify the scheme, and upon such certification, the scheme shall, notwithstanding anything to the contrary contained in any law for the time being in force, be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to such Judge of the High Court of Andhra Pradesh or the High Court of Telangana as may be nominated in this behalf by the Chief Justice thereof, and the decision of the Judge in regard to the scheme shall be final and shall be binding on the Corporations affected by the scheme as well as the shareholders and creditors thereof. (6) Nothing in the preceding provisions of this section shall be construed as preventing the Government of the States of Andhra Pradesh and Telangana from constituting, at any time on or after the appointed day, a State Financial Corporation for that State under the State Financial Corporations Act, 1951 (63 of 1951).


72. Certain provisions for companies.—Notwithstanding anything in this Part, the Central Government may, for each of the companies specified in the Ninth Schedule to this Act, issue directions– (a) regarding the division of the interests and shares of the existing State of Andhra Pradesh in the Company between the successor States; (b) requiring the reconstitution of the Board of Directors of the Company so as to give adequate representation to the successor States.

73. Temporary provisions as to continuance of certain existing road transport permits.—(1) Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988), a permit granted by the State Transport Authority of the existing State of Andhra Pradesh or any Regional Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid and effective in any area in the transferred territory, be deemed to continue to be valid and effective in that area after that day till its period of validity subject to the provisions of that Act as for the time being in force in that area; and it shall not be necessary for any such permit to be countersigned by the State Transport Authority of Telangana or any Regional Transport Authority therein for the purpose of validating it for use in such area: Provided that the Central Government may, after consultation with the successor State Government or Governments concerned add to amend or vary the conditions attached to the permit by the Authority by which the permit was granted. (2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in respect of any transport vehicle for its operations in any of the successor States under any such permit, if such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees or other charges for its operations in the transferred territory: Provided that the Central Government may, after consultation with the State Government or Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case may be: Provided further that the provisions of this sub-section shall not be applicable where any such tolls, entrance fees or other charges of a like nature are leviable for the use of any road or bridge which is constructed or developed for commercial purpose by the State Government, an undertaking of the State Government, a joint undertaking in which the State Government is a shareholder or the private sector.


74. Special provisions relating to, retrenchment compensation in certain cases.—Where on account of the reorganisation of the existing State of Andhra Pradesh under this Act, any body corporate constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under any law relating to co-operative societies or any commercial or industrial undertaking of that State is reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate, co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution, reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any such co-operative society or undertaking, is transferred to, or re-employed by, any other body corporate, or in any other co-operative society or undertaking, then, notwithstanding anything contained in section 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such transfer or re-employment shall not entitle him to any compensation under that section: Provided that— (a) the terms and conditions of service applicable to the workman after such transfer or re- employment are not less favourable to the workman than those applicable to him immediately before the transfer or re-employment; (b) the employer in relation to the body corporate, the co-operative society or the undertaking where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to the workman, in the event of his retrenchment, compensation under section 25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been continuous and has not been interrupted by the transfer or re-employment.


75. Special provision as to income-tax.—Where the assets, rights and liabilities of any body corporate carrying on business are, under the provisions of this Part, transferred to any other bodies corporate which after the transfer carry on the same business, the losses or profits or gains sustained by the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of 1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in the years in which those losses were sustained.


76. Continuance of facilities in certain State institutions.—(1) The Government of the State of Andhra Pradesh or the State of Telangana, as the case may be, shall, in respect of the institutions specified in the Tenth Schedule to this Act, located in that State, continue to provide facilities to the people of the other State which shall not, in any respect, be less favourable to such people than what were being provided to them before the appointed day, for such period and upon such terms and conditions as may be agreed upon between the two State Governments within a period of one year from the appointed day or, if no agreement is reached within the said period, as may be fixed by order of the Central Government. (2) The Central Government may, at any time within one year from the appointed day, by notification in the Official Gazette, specify in the Tenth Schedule referred to in sub-section (1) any other institution existing on the appointed day in the States of Andhra Pradesh and Telangana and, on the issue of such notification, such Schedule shall be deemed to be amended by the inclusion of the said institution therein.

PART VIII PROVISIONS AS TO SERVICES


77. Provisions relating to All-India Services.—(1) In this section, the expression ―State cadre‖–– (a) in relation to the Indian Administrative Service, has the meaning assigned to it in the Indian Administrative Service (Cadre) Rules, 1954; (b) in relation to the Indian Police Service, has the meaning assigned to it in the Indian Police Service (Cadre) Rules, 1954; and (c) in relation to the Indian Forest Service, has the meaning assigned to it in the Indian Forest Service (Cadre) Rules, 1966. (2) In place of the cadres of the Indian Administrative Service, Indian Police Service and Indian Forest Service for the existing State of Andhra Pradesh, there shall, on and from the appointed day, be two separate cadres, one for the State of Andhra Pradesh and the other for the State of Telangana in respect of each of these services. (3) The provisional strength, composition and allocation of officers to the State cadres referred to in sub-section (2) shall be such as the Central Government may, by order, determine on or after the appointed day. (4) The members of each of the said services borne on the Andhra Pradesh cadre immediately before the appointed day shall be allocated to the successor State cadres of the same service constituted under sub-section (2) in such manner and with effect from such date or dates as the Central Government may, by order, specify. (5) Nothing in this section shall be deemed to affect the operation, on or after the appointed day, of the All-India Services Act, 1951 (61 of 1951), or the rules made thereunder.


78. Provisions relating to other services.—(1) Every person who immediately before the appointed day is serving on substantive basis in connection with the affairs of the existing State of Andhra Pradesh shall, on and from that day provisionally continue to serve in connection with the affairs of the State of Andhra Pradesh unless he is required, by general or special order of the Central Government to serve provisionally in connection with the affairs of the State of Telangana: Provided that every direction under this sub-section issued after the expiry of a period of one year from the appointed day shall be issued with the consultation of the Governments of the successor States. (2) As soon as may be after the appointed day, the Central Government shall, by general or special order, determine the successor State to which every person referred to in sub-section (1) shall be finally allotted for service, after consideration of option received by seeking option from the employees, and the date with effect from which such allotment shall take effect or be deemed to have taken effect: Provided that even after the allocation has been made, the Central Government may, in order to meet any deficiency in the service, depute officers of other State services from one successor State to the other: Provided further that as far as local, district, zonal and multi-zonal cadres are concerned, the employees shall continue to serve, on or after the appointed day, in that cadre: Provided also that the employees of local, district, zonal and multi-zonal cadres which fall entirely in one of the successor States, shall be deemed to be allotted to that successor State: Provided also that if a particular zone or multi-zone falls in both the successor States, then the employees of such zonal or multi-zonal cadre shall be finally allotted to one or the other successor States in terms of the provisions of this sub-section. (3) Every person who is finally allotted under the provisions of sub-section (2) to a successor State shall, if he is not already serving therein, be made available for serving in the successor State from such date as may be agreed upon between the Governments of the successor States or, in default of such agreement, as may be determined by the Central Government: Provided that the Central Government shall have the power to review any of its orders issued under this section.


79. Other provisions relating to services.—(1) Nothing in this section or in section 77 shall be deemed to affect, on or after the appointed day, the operation of the provisions of Chapter I of Part XIV of the Constitution in relation to determination of the conditions of service of persons serving in connection with the affairs of the Union or any State: Provided that the conditions of service applicable immediately before the appointed day in the case of any person deemed to have been allocated to the State of Andhra Pradesh or to the State of Telangana under section 77 shall not be varied to his disadvantage except with the previous approval of the Central Government. (2) All services prior to the appointed day rendered by a person,— (a) if he is deemed to have been allocated to any State under section 77, shall be deemed to have been rendered in connection with the affairs of that State; (b) if he is deemed to have been allocated to the Union in connection with the administration of the successor State of Telangana, shall be deemed to have been rendered in connection with the affairs of the Union, for the purposes of the rules regulating his conditions of service. (3) The provisions of section 77 shall not apply in relation to members of any All-India Service.


80. Provisions as to continuance of officers in same post.—Every person who, immediately before the appointed day, is holding or discharging the duties of any post or office in connection with the affairs of the existing State of Andhra Pradesh in any area which on that day falls within one of the successor States shall continue to hold the same post or office in that successor State, and shall be deemed, on and from that day, to have been duly appointed to the post or office by the Government of, or other appropriate authority in, that successor State: Provided that nothing in this section shall be deemed to prevent a competent authority, on and from the appointed day, from passing in relation to such person any order affecting the continuance in such post or office.


81. Advisory committees.—(1) The Central Government may, by order, establish one or more Advisory Committees, within a period of thirty days from the date of enactment of the Andhra Pradesh Reorganisation Act, 2014, for the purpose of assisting it in regard to–– (a) the discharge of any of its functions under this Part; and (b) the ensuring of fair and equitable treatment to all persons affected by the provisions of this Part and the proper consideration of any representations made by such persons. (2) The allocation guidelines shall be issued by the Central Government on or after the date of enactment of the Andhra Pradesh Reorganisation Act, 2014 and the actual allocation of individual employees shall be made by the Central Government on the recommendations of the Advisory Committee: Provided that in case of disagreement or conflict of opinion, the decision of the Central Government shall be final: Provided further that necessary guidelines as and when required shall be framed by the Central Government or as the case may be, by the State Advisory Committee which shall be approved by the Central Government before such guidelines are issued.


82. Power of Central Government to give directions.—The Central Government may give such directions to the State Government of Andhra Pradesh and the State Government of Telangana as may appear to it to be necessary for the purpose of giving effect to the foregoing provisions of this Part and the State Governments shall comply with such directions.


83. Provision for employees of Public Sector Undertakings, etc.—On and from the appointed day, the employees of State Public Sector Undertakings, corporations and other autonomous bodies shall continue to function in such undertaking, corporation or autonomous bodies for a period of one year and during this period the corporate body concerned shall determine the modalities for distributing the personnel between the two successor States.


84. Provisions as to State Public Service Commission.—(1) The Public Service Commission for the existing State of Andhra Pradesh shall, on and from the appointed day, be the Public Service Commission for the State of Andhra Pradesh. (2) There shall be constituted a Public Service Commission in accordance with article 315 of the Constitution by the successor State of Telangana, and until such Commission is constituted, the Union Public Service Commission may, with the approval of the President, agree to serve the needs of the State of Telangana in terms of clause (4) of that article. (3) The persons holding office immediately before the appointed day as the Chairman or other member of the Public Service Commission for the existing State of Andhra Pradesh shall, as from the appointed day, be the Chairman or, as the case may be, the other member of the Public Service Commission for the State of Andhra Pradesh. (4) Every person who becomes the Chairman or other member of the Public Service Commission for the State of Andhra Pradesh on the appointed day under sub-section (3) shall–– (a) be entitled to receive from the Government of the State of Andhra Pradesh conditions of service not less favourable than those to which he was entitled under the provisions applicable to him; (b) subject to the proviso to clause (2) of article 316, hold office or continue to hold office until the expiration of his term of office as determined under the provisions applicable to him immediately before the appointed day. (5) The report of the Andhra Pradesh Public Service Commission as to the work done by the Commission in respect of any period prior to the appointed day shall be presented under clause (2) of article 323 to the Governors of the States of Andhra Pradesh and Telangana and the Governor of the State of Andhra Pradesh shall, on receipt of such report, cause a copy thereof together with a memorandum explaining as far as possible, as respects the cases, if any, where the advice of the Commission was not accepted, the reasons for such non-acceptance to be laid before the Legislature of the State of Andhra Pradesh and it shall not be necessary to cause such report or any such memorandum to be laid before the Legislative Assembly of the State of Telangana.

PART IX MANAGEMENT AND DEVELOPMENT OF WATER RESOURCES


85. Apex Council for Godavari and Krishna river water resources and their Management Boards.—(1) The Central Government shall, on and from the appointed day, constitute an Apex Council for the supervision of the functioning of the Godavari River Management Board and Krishna River Management Board. (2) The Apex Council shall consist of––– (a) Minister of Water Resources, Government of India—Chairperson; (b) Chief Minister of State of Andhra Pradesh—Member; (c) Chief Minister of State of Telangana—Member. (3) The functions of the Apex Council shall include–– (i) supervision of the functioning of the Godavari River Management Board and Krishna River Management Board; (ii) planning and approval of proposals for construction of new projects, if any, based on Godavari or Krishna river water, after getting the proposal appraised and recommended by the River Management Boards and by the Central Water Commission, wherever required; (iii) resolution of any dispute amicably arising out of the sharing of river waters through negotiations and mutual agreement between the successor States; (iv) reference of any disputes not covered under Krishna Water Disputes Tribunal, to a Tribunal to be constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956).


86. Constitution and functions of River Management Board.—(1) The Central Government shall constitute two separate Boards to be called the Godavari River Management Board and Krishna River Management Board (to be known as the Board), within a period of sixty days from the appointed day, for the administration, regulation, maintenance and operation of such projects, as may be notified by the Central Government from time to time. (2) The headquarters of Godavari River Management Board shall be located in the successor State of Telangana and of the Krishna River Management Board shall be located in the successor State of Andhra Pradesh.

(3) The Godavari River Management Board and Krishna River Management Board shall be autonomous bodies under the administrative control of the Central Government, and shall comply with such directions as may, from time to time, be given to them by the Central Government. (4) Each Board shall consist of the following Chairperson and Members, namely:–– ` (a) a Chairperson not below the rank or level of Secretary or Additional Secretary to the Government of India to be appointed by the Central Government; (b) two members, to be nominated by each of the successor States, of which one shall be the technical member not below the rank of Chief Engineer and the other administrative member to represent the concerned States; (c) one expert to be nominated by the Central Government. (5) Each Board shall have a full-time Member Secretary, not below the rank of Chief Engineer in the Central Water Commission, to be appointed by the Central Government. (6) The Central Government shall create such number of posts of the rank of Chief Engineer in the Central Water Commission, as it considers necessary. (7) Each Board shall be assisted in the day to day management of reservoirs by the Central Industrial Security Force constituted under the Central Industrial Security Force Act, 1968 (50 of 1968), on such terms and conditions as the Central Government may specify. (8) The functions of each Board shall include–– (a) the regulation of supply of water from the projects to the successor States having regard to–– (i) awards granted by the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956); (ii) any agreement entered into or arrangement made covering the Government of existing State of Andhra Pradesh and any other State or Union territory; (b) the regulation of supply of power generated to the authority in-charge of the distribution of power having regard to any agreement entered into or arrangement made covering the Government of the existing State of Andhra Pradesh and any other State or Union territory; (c) the construction of such of the remaining on-going or new works connected with the development of the water resources projects relating to the rivers or their tributaries through the successor States as the Central Government may specify by notification in the Official Gazette; (d) making an appraisal of any proposal for construction of new projects on Godavari or Krishna rivers and giving technical clearance, after satisfying that such projects do not negatively impact the availability of water as per the awards of the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956) for the projects already completed or taken up before the appointed day; and (e) such other functions as the Central Government may entrust to it on the basis of the principles specified in the Eleventh Schedule.


87. Staff of the Management Board.––(1) The Board shall employ such staff as it may consider necessary for the efficient discharge of its functions under this Act and such staff shall, at the first instance, be appointed on deputation from the successor States in equal proportion and absorbed permanently in the Board. (2) The Government of the successor States shall at all times provide the necessary funds to the Board to meet all expenses (including the salaries and allowances of the staff) required for the discharge of its functions and such amounts shall be apportioned between the States concerned in such proportion as the Central Government may, having regard to the benefits to each of the said States, specify.

(3) The Board may delegate such of its powers, functions and duties as it may deem fit to the Chairman of the said Board or to any officer subordinate to the Board. (4) The Central Government may, for the purpose of enabling the Board to function efficiently, issue such directions to the State Governments concerned, or any other authority, and the State Governments, or the other authority, shall comply with such directions.


88. Jurisdiction of Board.––(1) The Board shall ordinarily exercise jurisdiction on Godavari and Krishna rivers in regard to any of the projects over headworks (barrages, dams, reservoirs, regulating structures), part of canal network and transmission lines necessary to deliver water or power to the States concerned, as may be notified by the Central Government, having regard to the awards, if any, made by the Tribunals constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956). (2) If any question arises as to whether the Board has jurisdiction under sub-section (1) over any project referred thereto, the same shall be referred to the Central Government for decision thereon.


89. Power of Board to make regulations.––The Board may make regulations consistent with the Act and the rules made thereunder, to provide for— (a) regulating the time and place of meetings of the Board and the procedure to be followed for the transaction of business at such meetings; (b) delegation of powers and duties of the Chairman or any officer of the Board; (c) the appointment and regulation of the conditions of service of the officers and other staff of the Board; (d) any other matter for which regulations are considered necessary by the Board.

90. Allocation of water resources.––The term of the Krishna Water Disputes Tribunal shall be extended with the following terms of reference, namely:–– (a) shall make project-wise specific allocation, if such allocation have not been made by a Tribunal constituted under the Inter-State River Water Disputes Act, 1956 (33 of 1956); (b) shall determine an operational protocol for project-wise release of water in the event of deficit flows. Explanation.––For the purposes of this section, it is clarified that the project specific awards already made by the Tribunal on or before the appointed day shall be binding on the successor States.


91. Polavaram Irrigation Project to be a national project.––(1) The Polavaram Irrigation Project is hereby declared to be a national project. (2) It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation and development of the Polavaram Irrigation Project for the purposes of irrigation. (3) The consent for Polavaram Irrigation Project shall be deemed to have been given by the successor State of Telangana. (4) The Central Government shall execute the project and obtain all requisite clearances including environmental, forests, and rehabilitation and resettlement norms.

92. Arrangements on Tungabhadra Board.––(1) The Governments of the successor States of Andhra Pradesh and Telangana shall replace the existing State of Andhra Pradesh on the Tungabhadra Board. (2) The Tungabhadra Board shall continue to monitor the release of water to High Level Canal, Low Level Canal and Rajolibanda Diversion Scheme.


PART X INFRASTRUCTURE AND SPECIAL ECONOMIC MEASURES


93. Successor States to follow principles, guidelines, etc., issued by Central Government.––The principles, guidelines, directions and orders issued by the Central Government, on and from the appointed day, on matters relating to coal, oil and natural gas, and power generation, transmission and distribution as enumerated in the Twelfth Schedule shall be implemented by the successor States.


94. Measures for progress and development of successor States.––The Central Government shall take all necessary measures as enumerated in the Thirteenth Schedule for the progress and sustainable development of the successor States within a period of ten years from the appointed day.


95. Fiscal measures including tax incentives.––(1) The Central Government shall take appropriate fiscal measures, including offer of tax incentives, to the successor States, to promote industrialisation and economic growth in both the States. (2) The Central Government shall support the programmes for the development of backward areas in the successor States, including expansion of physical and social infrastructure. (3) The Central Government shall provide special financial support for the creation of essential facilities in the new capital of the successor State of Andhra Pradesh including the Raj Bhawan, High Court, Government Secretariat, Legislative Assembly, Legislative Council, and such other essential infrastructure. (4) The Central Government shall facilitate the creation of a new capital for the successor State of Andhra Pradesh, if considered necessary, by denotifying degraded forest land.


PART XI ACCESS TO HIGHER EDUCATION


96. Equal opportunities for quality higher education to all students.––In order to ensure equal opportunities for quality higher education to all students in the successor States, the existing admission quotas in all government or private, aided or unaided, institutions of higher, technical and medical education in so far as it is provided under article 371D of the Constitution, shall continue as such for a period of ten years during which the existing common admission process shall continue.

PART XII LEGAL AND MISCELLANEOUS PROVISIONS


97. Amendment of article 168 of the Constitution.––In sub-clause (a) of clause (1) of article 168 of the Constitution, for the word ―Tamil Nadu‖, the words ―Tamil Nadu, Telangana‖ shall be substituted.


98. Amendment of article 371D of the Constitution.––On and from the appointed day, in article 371D of the Constitution,–– (a) in the marginal heading, for the words ―the State of Andhra Pradesh‖, the words ―the State of Andhra Pradesh or the State of Telangana‖ shall be substituted; (b) for clause (1), the following clause shall be substituted, namely:–– ―(1) The President may by order made with respect to the State of Andhra Pradesh or the State of Telangana, provide, having regard to the requirement of each State, for equitable opportunities and facilities for the people belonging to different parts of such State, in the matter of public employment and in the matter of education, and different provisions may be made for various parts of the States.‖; (c) in clause (3), for the words ―the State of Andhra Pradesh‖, the words ―the State of Andhra Pradesh and for the State of Telangana‖ shall be substituted.

99. Amendment of section 15A of Act 43 of 1951.––In section 15A of the Representation of the People Act, 1951, after the words and figures ―under the Tamil Nadu Legislative Council Act, 2010 (16 of 2010)‖, the words and figures ―and constituting the Legislative Council of the State of Telangana under the Andhra Pradesh Reorganisation Act, 2014‖ shall be inserted.


100. Amendment of section 15 of Act 37 of 1956.––On and from the appointed day, in section 15 of the States Reorganisation Act, 1956, in clause (e), for the words ―Andhra Pradesh‖, the words ―Andhra Pradesh and Telangana‖ shall be substituted.


101. Territorial extent of laws.––The provisions of Part II shall not be deemed to have affected any change in the territories to which the Andhra Pradesh Land Reforms (Ceiling on Agricultural Holdings) Act, 1973 (Andhra Pradesh Act No. 1 of 1973) and any other law in force immediately before the appointed day extends or applies, and territorial references in any such law to the State of Andhra Pradesh shall, until otherwise provided by a competent Legislature or other competent authority be construed as meaning the territories within the existing State of Andhra Pradesh before the appointed day.


102. Power to adapt laws.––For the purpose of facilitating the application in relation to the State of Andhra Pradesh or the State of Telangana of any law made before the appointed day, the appropriate Government may, before the expiration of two years from that day, by order, make such adaptations and modifications of the law, whether by way of repeal or amendment, as may be necessary or expedient, and thereupon every such law shall have effect subject to the adaptations and modifications so made until altered, repealed or amended by a competent Legislature or other competent authority. Explanation.––In this section, the expression ―appropriate Government‖ means as respects any law relating to a matter enumerated in the Union List, the Central Government, and as respects any other law in its application to a State, the State Government.


103. Power to construe laws.––Notwithstanding that no provision or insufficient provision has been made under section 101 for the adaptation of a law made before the appointed day, any court, tribunal or authority, required or empowered to enforce such law may, for the purpose of facilitating its application in relation to the State of Andhra Pradesh or the State of Telangana, construe the law in such manner, without affecting the substance, as may be necessary or proper in regard to the matter before the court, tribunal or authority.


104. Power to name authorities, etc., for exercising statutory functions.––The Government of the State of Telangana, as respects the transferred territory may, by notification in the Official Gazette, specify the authority, officer or person who, on or after the appointed day, shall be competent to exercise such functions exercisable under any law in force on that day as may be mentioned in that notification and such law shall have effect accordingly.


105. Legal proceedings.––Where, immediately before the appointed day, the existing State of Andhra Pradesh is a party to any legal proceedings with respect to any property, rights or liabilities subject to apportionment between the States of Andhra Pradesh and Telangana under this Act, the State of Andhra Pradesh or the State of Telangana which succeeds to, or acquires a share in, that property or those rights or liabilities by virtue of any provision of this Act shall be deemed to be substituted for the existing State of Andhra Pradesh or added as a party to those proceedings, and the proceedings may continue accordingly.


106. Transfer of pending proceedings.––(1) Every proceeding pending immediately before the appointed day before a court (other than High Court), tribunal, authority or officer in any area which on that day falls within the State of Andhra Pradesh shall, if it is a proceeding relating exclusively to the territory, which as from that day are the territories of the State of Telangana, stand transferred to the corresponding court, tribunal, authority or officer of that State. (2) If any question arises as to whether any proceeding should stand transferred under sub-section (1) it shall be referred to the High Court at Hyderabad and the decision of that High Court shall be final. (3) In this section–– (a) ―proceeding‖ includes any suit, case or appeal; and

(b) ―corresponding court, tribunal authority or officer‖ in the State of Telangana means–– (i) the court, tribunal, authority or officer in which, or before whom, the proceeding would have laid if it had been instituted after the appointed day; or (ii) in case of doubt, such court, tribunal, authority, or officer in that State, as may be determined after the appointed day by the Government of that State or the Central Government, as the case may be, or before the appointed day by the Government of the existing State of Andhra Pradesh to be the corresponding court, tribunal, authority or officer.


107. Right of pleaders to practise in certain cases.––Any person who, immediately before the appointed day, is enrolled as a pleader entitled to practise in any subordinate court in the existing State of Andhra Pradesh shall, for a period of one year from that day, continue to be entitled to practise in those courts, notwithstanding that the whole or any part of the territories within the jurisdiction of those courts has been transferred to the State of Telangana.


108. Effect of provisions of the Act inconsistent with other laws.––The provisions of this Act shall have effect notwithstanding anything inconsistent therewith contained in any other law.


109. Power to remove difficulties.––(1) If any difficulty arises in giving effect to the provisions of this Act, the President may, by order do anything not inconsistent with such provisions which appears to him to be necessary or expedient for the purpose of removing the difficulty: Provided that no such order shall be made after the expiry of a period of three years from the appointed day. (2) Every order made under this section shall be laid before each House of Parliament.