The ongoing controversy between Telangana and Andhra Pradesh regarding the transfer of funds from Building Labour Welfare Fund has become a big headache for the bankers. Telangana government has sent a circular to the banks that they should not allow any fund transfer from the existing accounts of common assets to Andhra Pradesh and if they do, they will impose criminal cases on the bankers.
A day after bankers got the circular, Andhra Pradesh government has sent one more notice to the bankers to process all the transfers. AP Chief Secretary clearly stated that bankers should only follow the basic rules of banking and do not need to take the instructions from any other parties (Telangana government in this case). Bankers are in utter confusion regarding how to proceed in this issue.
It is known that Telangana is alleging that Andhra officials have taken some funds illegally to Vijayawada from the undivided assets of Labour department while AP officials say that they have only transferred only those funds which will come to AP according to the Andhra Pradesh Reorganization Act.
