APSDC same day loans: HC asks the government to file a counter on the relinquishment of the sovereign power of the governor

It also seeks to clarify the validity of the pacts with the APSDC and the banks, and the guarantee offered.

The Bench Division of the Andhra Pradesh High Court, made up of Chief Justice Arup Kumar Goswami and Judge N. Jayasurya, ordered the government to file a counter affidavit within seven days setting out its position on the alleged relinquishment of power ruler of the governor in the process of obtaining a loan of 25,000 crore through the AP State Development Corporation (APSDC) and other related matters same day loans

The court also sought clarification on the government’s position on the validity of the agreements it made with APSDC and banks to benefit from same day loans"}” data-sheets-userformat=”{"2":513,"3":{"1":0},"12":0}”>same day loans facilities, mortgage government properties such as district collectors’ offices and MRO and college buildings, and the collateral offered for such loans.

Appearing for the state, senior lawyer Dushyant Dave argued that the government had neither violated RBI regulations nor the creation of the APSDC against Articles 21, 204 and 266 of the Constitution as claimed by the petitioners. .

He argued that the case was politically motivated because one of the petitioners, Velagapudi Ramakrishna Babu, was an outgoing TDP MP representing the constituency of Visakhapatnam East.

In addition, he insisted that banks were reluctant to grant loans because of representations submitted by some “citizens concerned about the public welfare”.

The petitioner’s lawyer, Y. Balaji, said that the state government had relinquished the sovereign power of the governor under article 361 of the Constitution by giving the banks a guarantee for the loan of 25,000 crore raised. by this one.

He claimed that the APSDC had no income and therefore it was quite possible that loans taken through it would turn into non-performing assets in the future.

After hearing the case, the court adjourned the case until October 21 while ordering Mr. Dave and others to file meters within a week.

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