There is a conflict between the two States in dividing assets and liabilities. The governments of both States claims are different.
Andhra Pradesh Government has approached the Supreme Court seeking “just, reasonable and equitable apportionment” of assets and liabilities.
Single comprehensive State undertaking is the one that includes the headquarters and the operational units in one facility.
The Act says, “The assets and liabilities relating to any commercial or industrial undertaking of the existing State of AP, where such undertaking or part thereof is exclusively located in, or its operations are confined to, a local area, shall pass to the State in which that area is included on the appointed day, irrespective of the location of its headquarters”.
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