TS govt plans to sell Rajiv Swagruha flats

Hyderabad: Irked by the decision of the Union Government to put brakes on institutional borrowings, the state government is contemplating to sell the properties constructed under Rajiv Swagruha programme in the open market. It is also examining the possibility of knocking on the doors of the Supreme Court challenging the Centre's decision not to permit the state to go in for fresh loans.

The government has issued notification fixing the rate of the flats in the open market. It hopes to mop up Rs 2,000 crore by selling these flats. Prospective buyers have to apply online. Earlier, the government had once invited realtor companies to buy the Swagruha properties through auction, but the response was negligible.

Another measure the state Finance department is taking up is to withdraw fixed deposits from the banks in the districts. The district Collectors were asked to send the details of the utilisation of the funds immediately. The unspent funds will be deposited in the accounts of the state finance wing to meet the financial needs in the important sectors.

Top officials said that Chief Minister K Chandrasekhar Rao reviewed the situation with the officials of the state Finance department.

Finance Secretary K Rama Krishna Rao has already registered a strong protest before the Union Finance Ministry on this issue in the recently held video conference. "The state will approach the court If the Centre does not respond by May third week," said a senior official. The RBI will auction state bonds for Rs 2,000 crore on May 17. If the Centre did not allow the Reserve Bank to auction the bond for borrowings, the official said that the government will file a petition against the Centre in the apex court.

The state Finance officials were also in touch with Tamil Nadu and Kerala state counterparts and discussing the action plan to fight against the Union government on the issue of state borrowings. The Centre has raised serious doubts on the borrowings received in the name of corporations by the Telangana government. The TS government argued the state was seeking borrowings within the FRMB limits and the inclusion of loans taken by the state corporations cannot be included in the state debts.