Telangana protests RBI move, demands back `1,274 crore

Telangana on Saturday  lodged a protest with the Centre over Reserve Bank of India transferring its funds of `1,274 crore to the Income Tax Department without giving any notice.Income Tax Department had seized this money from the Beverages Corporation saying the Corporation had not paid the Income Tax for many years.Telangana’s Minister for Information Technology K Taraka Rama Rao met Union Finance Minister Arun Jaitely in New Delhi on Saturday to lodge a formal complaint on the issue.

demanded that the money should be recovered and returned to the State. Pointing out that Andhra Pradesh Beverages Corporation from which the money was seized was yet to be divided between the two States. The arrears of income tax should be divided between the two States of Telangana and Andhra Pradesh in the ratio of 58:42, he demanded. Arun Jaitely assured him that he will resolve the issue after talking to the revenue secretary.later talking to the reporters KTR said that he does not think Centre will invoke Section 8, which vests powers of law and order in Hyderabad to the Governor.