The inclusion of the name of the governor of Andhra Pradesh, Biswa Bhusan Harichandan, as guarantor in a loan agreement has put Jaganmohan Reddy’s government in a soup kitchen.
The governor is said to have expressed dissatisfaction with the inclusion of his personal name in the guarantor’s address for notices in the deal to secure a loan of Rs 25,000 crore by the State Development Corporation. Andhra Pradesh from financial institutions.
The case came to light recently when the High Court of Andhra Pradesh, while considering various petitions challenging the purpose of the APSDC, questioned the government about the use of the governor’s name.
Several government actions are carried out “in the name of the governor”, the constitutional head of state as the President at the center. It refers to the institution, and not to the immediate person occupying the chair.
But the inclusion of Harichandan’s name in the address column for service of notices, some senior officials said, gave the impression that he personally guaranteed the debts.
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The “description of the guarantor” in Annex 3 of the APSDC bank loan document mentions “BiswaBhusan Harichandan, Governor of Andhra Pradesh”, followed by the C / O address of the finance department of the secretariat of the AP, Amaravati.
“The matter came to the attention of the governor’s office after the HC’s observations. It’s strange, because putting the name of the governor as guarantor goes against article 361 of the Indian constitution, ”a senior official told DH.
Article 361 states that the president, or the governor of the state, “shall not be responsible before any court for the exercise and execution of the powers and duties of his office or for any act done or purported to be done by him in the exercise and fulfillment of these powers and duties.
Following the controversy, officials from the state’s finance department sought to provide an explanation to the governor and are reportedly renegotiating the writing of the loan deed with the banks.
“It is certainly not a clerical error. The government needs to be clear on many aspects such as – why did the banker ask for the inclusion of the governor’s name, if it had, and why the government did not ask governor’s approval before doing so, ”former Andhra Pradesh IYR Chief Secretary Krishna Rao told DH.
Rao accused the YSRCP government of circumventing rules and procedures to obtain huge amounts of loans from banks. The Reddy government allegedly promises government assets such as buildings and future income to qualify for loans.
Last Thursday, a few days after the HC’s request, Reddy met Governor Harichandan at Raj Bhavan. CMO officials said it was a courtesy visit with his wife.