In the Act, the Centre has laid down the rules regarding bifurcation of assets, liabilities, and employees of these institutions.
Hyderabad: The 9th and 10th schedule institutions listed in the AP Reorganisation Act have not been bifurcated between Telangana and Andhra Pradesh even three-and-a-half-years after the state split. As a result, about Rs 8,000 crore is parked in various banks and neither state government can use the money. Some of these institutions are starved of funds for development activities, as neither government is in a position to allot funds. The banks are, however, paying interest on the funds. There are 91 institutions in the 9th schedule and 142 in the 10th schedule, including government departments, universities and others listed in the Act by the Centre at the time of the bifurcation.
In the Act, the Centre has laid down the rules regarding bifurcation of assets, liabilities, and employees of these institutions. But both state governments hold that these rules are contradictory and are using them to their advantage.