Mangalagiri: PAC chief Payyavula Keshav urges CAG probe

Mangalagiri: AP Assembly Public Accounts Committee (PAC) chairman Payyavula Keshav on Monday demanded the YSRCP government to respond to the Central government's latest comment that there were 'prima facie' constitutional violations in the 'escrow agreements' signed by AP to get Rs 25,000 crore massive loans from the national banks through the AP State Development Corporation Ltd (APSDCL).

Keshav asked whether the AP government would amend the law to withdraw the escrow account based on the Centre's letter. In that case, its agreements involving Rs 25,000 crore loans would be in danger of becoming invalid thereby putting a question mark on the legal efficacy of the national banks that were part of these unconstitutional agreements.

Addressing a press conference here, the PAC chairman stressed the need for the Central government to order a thorough probe by the Comptroller and Auditor General (CAG) of India into the unprecedented and large-scale financial irregularities committed by the present AP government. If the systems at the national and state levels were not corrected and strengthened now, it would lead to more serious financial transgressions in future.

Keshav also suspected the role played by the national banks that made a mistake despite having strong legal frameworks and systems to guard against such constitutional violations. The State Bank of India (SBI), Indian Bank, Punjab National Bank and the SBICAP Trustee Company Ltd were involved in this massive transaction.

Decrying the whole loan transaction, Keshav questioned the role played by the office of the Governor in allowing this massive unconstitutional financial transaction without any basic scrutiny on its part.

He asked why the BJP leadership remained silent when such a never-before financial violation was committed by the AP government.

The PAC chairman told the YSRCP regime that it was not his intention to create obstacles for the state to procure loans but it was just an effort to ensure legality in taking loans within the permissible legal frameworks.

For the past two years, many serious financial violations took place in AP but the Centre and various systems did not respond at that time. Even when reports came out about Rs 17,000 crore excess drawal by AP, there was no immediate action.

At least now, the Centre, the RBI and the CAG should plug financial gaps so that the future generations and the banks would not face major difficulties, he suggested.