The YCP government indulged in a huge trick to take more debts. Through Andhra Pradesh State Development Corporation Limited (APSDC), the YCP government planned to borrow Rs 25,000 crore from several banks and financial institutions. However in the agreement between the state government and banks, AP Governor’s name was included in the documents.
The documents had mention of AP Governor’s address to serve notices if the state government fails to make repayment. Shockingly at the signature column where the state government was supposed to sign, was written ‘AP Governor’ and in the address section, it was stated as ‘Sri Biswabhushan Harichandan, AP Governor, C/o Finance Department, Principal Finance Secretary, Finance Department, AP Secretariat.’
Even more shockingly, below the same column, additional secretary to the finance department CHVN Malleshwara Rao signed the documents. Learning about this AP Governor Biswabhushan Harichandan expressed anger on the YCP government. He reportedly asked the AP CMO and financial department for an explanation.
With summons from the Governor, the AP CMO and other officials are making rounds at Raj Bhavan. The officials are said to be in a dilemma whether to make new agreements with banks and simultaneously they are also looking for alternative options on how to proceed.
Earlier the YCP government indulged in similar ploy and the matter reached the AP High Court. The court found fault with the AP government and suggested making necessary changes.