COMMON ORDER:

Heard learned counsel for the petitioners and learned Government Pleader appearing for the respondents.

The petitioners claim to be the employees of Andhra Pradesh Grameena Vikas Bank, Regional Rural Bank (RRB) established in the year 2006 under Regional Rural Banks Act, 1976 by amalgamating Manjeera Grameena Bank (Medak), Sangameshwara Grameena Bank (Mahabubnagar), Kakatiya Grameena Bank (Warangal), Nagarjuna Grameena Bank (Khammam& Nalgonda) and Sri Visakha Grameena Bank (Visakhapatnam, Vizianagaram & Srikakulam) with Head Office at Hanmakonda, Warangal (Urban District) sponsored by State Bank of India operating in 21 Districts of Telangana State and 3 Districts of Andhra Pradesh.

The Regional Rural Banks (RRBs) are Government owned scheduled commercial bank of India that operate at Regional level in different States of India. They were created to serve rural areas with basic banking and financial services. The area of operation is limited to the area notified by the Government of India and it covers one or more Districts in the State.

Reserve Bank of India (RBI) had taken many initiatives to strengthen RRBs and improve their performance. The comprehensive restricting program, capitalization of RRBs was initiated in the year 1994-95. The process continued till 1990-2000 and covered 187 RRBs with aggregate financial support of Rs.2188.44 Crore from the shareholders viz., State Governments and sponsor Banks in the ratio of 50:15:35.

In order to strengthen them further, a need was felt by the State Government to amalgamate more than one RRB operating in the same State. The process of amalgamation took place initially in January, 2013. 25 RRBs were amalgamated into 10 RRBs. In March, 2016 there were 56 RRBs covering 525 Districts. As on 01.04.2020, there are 43 RRBs in India. The RRBs are recognized by the law and they have legal significance. There are several disadvantages in view of the The grievance of the petitioners in both the writ petitions is that APGVB is situated in three Districts of Andhra Pradesh i.e., Srikakulam, Vizianagaram and Visakhapatnam and old five Districts of Telangana. The petitioners who belong to Andhra Pradesh State are forced to work in District and State far off from their native places, separated from their families. As the network of branches, after mergers, will be evenly distributed across the State of Andhra Pradesh, the threat of transfers to far off places will diminish substantially. There are several disadvantages in view of non amalgamation of the RRBs in the State of Andhra Pradesh and the employees working in Andhra Pradesh are compelled to go to Telangana State wherein the AP Grameena Vikas Bank, Head Office is located at Warangal, Telangana State. The Head Office for the State of Andhra Pradesh is not yet formed in the AP in view of the failure of the State Government in non issuance of No Objection Certificate to the respondent No.1 to complete the process of amalgamation. No official statement was given by the State Government till date. The said inaction is causing grave injustice to the petitioners and they are being deprived of their rightful entitlements as a result of the amalgamation of RRBs in the State of Andhra Pradesh. The major impediment for not issuing ‘no objection certificate’ by the 1st respondent stems from the inaction of the 1st respondent to re-organize APGVB in the State of Andhra Pradesh and State of Telangana. The amalgamation of RRBs cannot be proceeded with unless the assets and liabilities of APGVB are bifurcated and is accordingly reorganized in the State of Andhra Pradesh and the State of Telangana.

Learned counsels for the petitioners would contend that as per Section

52(4) and Section 53 of the A.P Reorganisation Act, the assets and liabilities relating to anybody corporate or commercial undertaking that become inter-

State body corporate or commercial undertakings to have be divided between the State of Telangana and the residuary State of Andh