68. Provisions for various companies and corporations.—(1) The companies and corporations
specified in the Ninth Schedule constituted for the existing State of Andhra Pradesh shall, on and from the
appointed day, continue to function in those areas in respect of which they were functioning immediately
before that day, subject to the provisions of this section.
(2) The assets, rights and liabilities of the companies and corporations referred to in sub-section (1)
shall be apportioned between the successor States in the manner provided in section 53.
69. Continuance of arrangements in regard to generation and supply of electric power and
supply of water.—If it appears to the Central Government that the arrangement in regard to the
generation or supply of electric power or the supply of water for any area or in regard to the execution of
any project for such generation or supply has been or is likely to be modified to the disadvantage of that
area by reason of the fact that it is, by virtue of the provisions of Part II, outside the State in which the
power stations and other installations for the generation and supply of such power, or the catchment area,
reservoirs and other works for the supply of water, as the case may be, are located, the Central
Government may, after consultation with the Governments of the successor States wherever necessary,
give such directions as it deems proper to the State Government or other authority concerned for the
maintenance, so far as practicable, of the previous arrangement and the State to which such directions are
given shall comply with them.
70. Provisions as to Andhra Pradesh State Financial Corporation.—(1) The Andhra Pradesh State
Financial Corporation established under the State Financial Corporations Act, 1951 (63 of 1951) shall, on
and from the appointed day, continue to functionin those areas in respect of which it was functioning
immediately before that day, subject tothe provisions of this section and to such directions as may, from
time to time, be issued by the Central Government.
(2) Any directions issued by the Central Government under sub-section (1) in respect of the
Corporation may include a direction that the said Act, in its application to the Corporation, shall have
effect subject to such exceptions and modifications as may be specified in the direction.
(3) Notwithstanding anything contained in sub-section (1) or sub-section (2), the Board of Directors
of the Corporation may, with the previous approval of the Central Government and shall, if so required by
the Central Government, convene at any time after the appointed day a meeting for the consideration of a
scheme for the reconstitution or reorganisation or dissolution, as the case may be, of the Corporation,
including proposals regarding the formation of new Corporations, and the transfer thereto of the assets,
rights and liabilities of the existing Corporation, and if such a scheme is approved at the general meeting
by a resolution passed bya majority of the share holders present and voting, the scheme shall be submitted
to the Central Government for its sanction.
(4) If the scheme is sanctioned by the Central Government either without modifications or with
modifications which are approved at a general meeting, the Central Government shall certify the scheme,
and upon such certification, the scheme shall, notwithstanding any thing to the contrary contained in any
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law for the time being in force, be binding on the Corporations affected by the scheme as well as the
shareholders and creditors thereof.
(5) If the scheme is not so approved or sanctioned, the Central Government may refer the scheme to
such Judge of the High Court of Andhra Pradesh or the High Court of Telangana as may be nominated in
this behalf by the Chief Justice thereof, and the decision of the Judge inregard to the scheme shall be final
and shall be binding on the Corporations affected by the scheme as well as the shareholders and creditors
thereof.
(6) Nothing in the preceding provisions of this section shall be construed as preventing the
Government of the States of Andhra Pradesh and Telangana from constituting, at anytime on or after the
appointed day, a State Financial Corporation for that State under the State Financial Corporations Act,
1951 (63 of 1951).
71. Certain provisions for companies.—Notwithstanding anything in this Part, the Central
Government may, for each of the companies specified in the Ninth Schedule to this Act, issue directions–
(a) regarding the division of the interests and shares of the existing State of Andhra Pradesh in the
Company between the successor States;
(b) requiring the reconstitution of the Board of Directors of the Company so as to give adequate
representation to the successor States.
72. Temporary provisions as to continuance of certain existing road transport permits.—(1)
Notwithstanding anything contained in section 88 of the Motor Vehicles Act, 1988 (59 of 1988), a
permit granted by the State Transport Authority of the existing State of Andhra Pradesh or any Regional
Transport Authority in that State shall, if such permit was, immediately before the appointed day, valid
and effective in any area in the transferred territory, be deemed to continue to be valid and effective in
that area after that day till its period of validity subject to the provisions of that Act as for the time being
in force in that area; and it shall not be necessary for any such permit to be countersigned by the State
Transport Authority of Telangana or any Regional Transport Authority therein for the purpose of
validating it for use in such area:
Provided that the Central Government may, after consultation with the successor State Government or
Governments concerned add to amend or vary the conditions attached to the permit by the Authority by
which the permit was granted.
(2) No tolls, entrance fees or other charges of a like nature shall be levied after the appointed day in
respect of any transport vehicle for its operations in any of the successor States under any such permit, if
such vehicle was, immediately before that day, exempt from the payment of any such toll, entrance fees
or other charges for its operations in the transferred territory:
Provided that the Central Government may, after consultation with the State Government or
Governments concerned, authorise the levy of any such toll, entrance fees or other charges, as the case
may be:
Provided further that the provisions of this sub-section shall not be applicable where any such tolls,
entrance fees or other charges of a like nature are leviable for the use of any road or bridge which is
constructed or developed for commercial purpose by the State Government, an undertaking of the State
Government, a joint undertaking in which the State Government is a shareholder or the private sector.
73. Special provisions relating to, retrenchment compensation in certain cases.—Where on
account of the reorganisation of the existing State of Andhra Pradesh under this Act, any body corporate
constituted under a Central Act, State Act or Provincial Act, any co-operative society registered under
any law relating to co-operative societies or any commercial or industrial undertaking of that State is
reconstituted or reorganised in any manner whatsoever or is amalgamated with any other body corporate,
co-operative society or undertaking, or is dissolved, and in consequence of such reconstitution,
reorganisation, amalgamation or dissolution, any workman employed by such body corporate or in any
such co-operative societyor undertaking, is transferred to, or re-employed by, any other body corporate,
or in any other co-operative society or undertaking, then, notwithstanding anything contained in section
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25F or section 25FF or section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947), such transfer or
re-employment shall not entitle him to any compensation under that section:
Provided that—
(a) the terms and conditions of service applicable to the workman after suchtransfer or reemployment are not less favourable to the workman than those applicable to him immediately before
the transfer or re-employment;
(b) the employer in relation to the body corporate, the co-operative society orthe undertaking
where the workman transferred or re-employed is, by agreement or otherwise, legally liable to pay to
the workman, in the event of his retrenchment, compensation undersection 25F or section 25FF or
section 25FFF of the Industrial Disputes Act, 1947 (14 of 1947) on the basis that his service has been
continuous and has not been interrupted by the transfer or re-employment.
74. Special provision as to income-tax.—Where the assets, rights and liabilities of any body
corporate carrying on business are, under the provisions of this Part, transferred to any other bodies
corporate which after the transfer carry on the same business, the losses or profits or gains sustained by
the body corporate first-mentioned which, but for such transfer, would have been allowed to be carried
forward and set off in accordance with the provisions of Chapter VI of the Income-tax Act, 1961 (43 of
1961), shall be apportioned amongst the transferee bodies corporate in accordance with the rules to be
made by the Central Government in this behalf and, upon such apportionment, the share of loss allotted to
each transferee body corporate shall be dealt with in accordance with the provisions of Chapter VI of the
said Act, as if the transferee body corporate had itself sustained such loss in a business carried on by it in
the years in which those losses were sustained.
75. Continuance of facilities in certain State institutions.—(1) The Government of the State of
Andhra Pradesh or the State of Telangana, as the case may be, shall, in respect of the institutions specified
in the Tenth Schedule to this Act, located in that State, continue to provide facilities to the people of the
other State which shall not, in any respect, be less favourable to such people than what were being
provided to them before the appointed day, for such period and upon such terms and conditions as may be
agreed upon between the two State Governments within a period of one year from the appointed day or, if
no agreement is reached within the said period, as may be fixed by order of the Central Government.
(2) The Central Government may, at any time within one year from the appointed day, by notification
in the Official Gazette, specify in the Tenth Schedule referred to in sub-section (1) any other institution
existing on the appointed day in the States of Andhra Pradesh and Telangana and, on the issue of such
notification, such Schedule shall bedeemed to be amended by the inclusion of the said institution therein.