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The Telangana (Regulation of Appointments to Public Services and Rationalisation of Staff Pattern and Pay Structure) Act, 1994.

Telangana · state statute
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THE TELANGANA (REGULATION OF APPOINTMENTS TO PUBLIC 
SERVICES AND RATIONALISATION OF STAFF PATTERN AND 
PAY STRUCTURE) ACT, 1994. 
(ACT NO. 2 OF 1994) 
ARRANGEMENT OF SECTIONS 
Sections 
1. Short title and commencement. 
2. Definitions. 
3. Prohibition of daily wage appointments and regulation 
of temporary appointments. 
4. Regulation of recruitment. 
5. Bills not to be passed. 
6. Penalties. 
7. Bar for regularisation of services. 
7A. Abatement of Claims. 
8. Power to give directions. 
9. Abatement of claims. 
10. Creation of Posts. 
10-A. Regularisation of Services of persons appointed on 
contract basis. 
11. Review Committees. 
12. Committee to exercise the powers of the Civil Court. 
13. Offences and Punishments. 
14. Penalty for abetters. 
15. Offences by Companies. 
16. Bar of jurisdiction of Civil Courts. 
17. Act to override other laws. 
2  [Act No. 2 of 1994] 
18. Power to make rules. 
19. Guidelines for interpretation of Act. 
20. Repeal of Ordinance 8 of 1993. 
 The Schedule. 
 
THE TELANGANA (REGULATION OF APPOINTMENTS TO 
PUBLIC SERVICES AND RATIONALISATION OF STAFF 
PATTERN AND PAY STRUCTURE) ACT, 1994.1 
 
ACT No.2 OF 1994. 
 
1. (1) This Act may be called the 2Telangana (Regulation 
of Appointments to Public Services and Rationalisation of 
Staff Pattern and Pay Structure) Act, 1994. 
 
 (2) It shall be deemed to have come into force with 
effect on and from the 25th November, 1993. 
 
2. In this Act unless the context otherwise requires,- 
 
 (i) „competent authority‟ means the officer or authority 
specified by the Government by notification to exercise the 
powers and perform the functions of a competent authority 
under this Act and they may specify  the different authorities 
for different purposes, different districts and different 
departments and institutions; 
 
 (ii) „daily wage employee ‟ means any person who is 
employed in any public service on the basis of payment of 
daily wages and includes a  person employed on the basis 
of nominal muster roll or consolidated pay ei ther on full-time 
or part -time or piece rate basis or as a work charged 
employee and any other similar category of employees by 
                                                           
1. The Andhra Pradesh (Regulation of Appointments to Public Services 
and Rationalisation of Staff Pattern and Pay Structure) Act, 1994 
received the assent of the Governor on the 15 th January, 1994. The said 
Act in force in the combined State, as on 02.06.2014, has been adapted 
to the State of Telangana, under section 101 of the Andhra Pradesh 
Reorganisation Act, 2014 (Central Act 6 of 2014) vide. the Notification 
issued in G.O.Ms.No.16, Finance (HRM.I) Department, dated 
26.02.2016. 
2. Substituted by G.O.Ms.No.16, Finance (HRM.I)  Department, dated 
26.02.2016. 
Short title and 
commencement. 
Definitions. 
2  [Act No.2 of 1994] 
whatever designation called other than those who are 
selected and appointed in a sanctioned post in accordance 
with the relevant rules on a regular basis; 
 
 (iii) „Government‟ means the State Government; 
 
 (iv) „local authority‟ means,- 
 
  (a) a Gram Panchayat established under the 3Andhra 
Pradesh Gram Panchayats Act, 1964; 
 
  (b) a Mandal Praja  Parishad or a Zilla Praja Parishad 
established under the 3Andhra Pradesh  Mandala Praja 
Parishads, Zilla Praja Parishads and Zilla Pranalika and 
Abhivrudhi Sameeksha Mandals Act, 1986; 
 
  (c) a Municipality constituted under the 4Telangana 
Municipalities Act, 1965; and 
 
  (d) a Municipal Corporation established under the 
relevant law, for the time being in force, relating to Municipal 
Corporations; 
 
 (v) „Notification‟ means, a notification published in the 
5Telangana Gazette; 
 
 6[(vi) „Public Services for the purposes of th is Act‟  
means, services in any office or establishment of:- 
 
  (a) the Government; 
                                                           
3. Now see the provisons under the Telangana Panchayat Raj Act, 2018 
(Act No.5 of 2018). 
4. Adapted in G.O.Ms.No.142, Municipal Administration & Urban 
Development (F2) Department, dated 29.10.2015. 
5. Substituted by G.O.Ms.No .16, Finance (HRM.I) Department, dated 
26.02.2016 
6. Clause (vi) substituted by Act No.5 of 2004. 
Act 2 of 1964. 
Act 31 of 1986. 
Act VI of 1965. 
[Act No.2 of 1994]  3 
  (b) a local authority; 
 
  (c) a Corporation or undertaking wholly owned or 
controlled by the State Government; 
 
  (d) a  body established under any law made by the 
Legislature of the State whether incorporated or not; 
including a University; 
 
  (e) a Co -operative Society registered under the 
7Telangana Co-operative Societies Act, 1964; and 
 
  (f) any other  body established by the State 
Government or by a Society, other than the Society 
specified under sub -clause (e), registered under any law 
relating to the registration of societies for the time being in 
force, and receiving funds from the State Government either 
fully or partly for its maintenance or any educational 
institution whether registered or not but rece iving aid from 
the Government.] 
 
3. (1) The appointment of any person in any public 
service to any post, in any class, category or grade as a 
daily wage employee is hereby prohibited. 
 
 (2) No temporary appointment shall be made in any 
public service to any post, in any class, category or grade 
without the prior permission of the competent authority and 
without the name of the concerned candidate being 
sponsored by the Employment Exchange. 
 
4. 8[(1)] No recruitment in any public service to any post 
in any class, category or grade shall be made except,— 
                                                           
7. Adapted in G.O.Ms.No.53, Agriculture & Co -operation (Coop.II) 
Department, dated 20.05.2016. 
8. Section 4 renumbered as sub -section (1) of section (4) by Ac t No.16 
of 1997. 
Regulation of 
recruitment. 
Prohibition of 
daily wage 
appointments and 
regulation of 
temporary 
appointments. 
Act 7 of 1964. 
4  [Act No.2 of 1994] 
  (a) from the panel of candidates selected and 
recommended for appointment b y the Public Service 
Commission/College Service Commission where the post is 
within the purview of the said Commission; 
 
  (b) from a panel prepared by any Selection 
Committee constituted for the purpose in accordance with 
the relevant rules or orders issued in that behalf; and 
 
  9[(c) from the candidates having the requisite 
qualification either sponsored by the Employment Exchange 
or applied in response to the wide publicity of vacancy 
position through Daily News paper having wider circulation 
or Employment News Bulletin and also display on the Office 
Notice Boards or announcement through Radio or 
Television in other cases where recrui tment otherwise than 
in accordance with clauses (a) and (b) is permissible.] 
 
  10[xxx] 
 
 11[(2) Nothing in sub-section (1) shall apply,- 
 
  (a) to the compassionate appointments made in 
favour of a son or a daughter or spouse of any person 
employed in public service who dies in harness or who 
retires from service on medical grounds, in accordance with 
the relevant orders issued from time to time; 
 
  12[(b) to the appointments made in favour of a  son or 
daughter or spouse or a grand son (son‟s son) or a grand  
daughter (son‟s daughter) or a grand son (depen dent 
daughter‟s son) or a grand daughter (dependent daughter‟s 
daughter) of any married person or a brother or a sister or 
                                                           
9. Clause (c) substituted by Act No.5 of 2009. 
10. Explanation omitted by Act No.16 of 1997. 
11. Added by Act No.16 of 1997. 
12. Clause (b) substituted by Act No.5 of 2009. 
[Act No.2 of 1994]  5 
parent of any unmarried person killed or totally 
incapacitated in extremist violence or in police firing or 
bomb-blast or in communal violence irrespective of the age 
of the killed who is not accused of an offence, made in 
accordance with the relevant orders issued from  time to 
time. 
 
  Explanation:- “totally incapacitated” means certified  
as such by the Medical Board;] 
 
  13[(c) to the appointments made in favour of members 
of Scheduled Castes or Scheduled Tribes, who or whose 
parents or spouse are subjected to atrocities, in accordance 
with the relevant orders issued from time to time;] 
 
  14[(d) to any suitable appointments to be made in 
compliance with assurance  bearing Number 2488/X/96, 
Assembly Secretariat, dated 10th September, 1996 made on 
the floor of the Legislative Assembly of the State.] 
 
5. Where an appointment is not in accordance with 
section 4, the drawing authority shall not sign the salary bill 
of the appointee concerned and the Pay and Accounts 
Officer, Sub -Treasury Officer or any other officer who is 
charged with the responsibility of passing the salary bill shall 
not pass such bill unless a certificate issued by the 
appointing authority to the effect that the appointment has 
been made in accordance with section 4 is attached to the 
first salary bill of the appointee concerned. 
 
6. (1) Where any holder of an elective office or any officer 
or authority makes  any appointment in contravention of the 
provisions of this Act,- 
 
                                                           
13. Clause (c) added by Act No.3 of 1998. 
14. Clause (d) added by Act No.27 of 1998. 
Bills not to be 
passed. 
Penalties. 
6  [Act No.2 of 1994] 
  (a) it shall be deemed in the case of the holder of an 
elective office that he has abused his position or power and 
accordingly the competent authority shall initiate 
proceedings for his removal; and 
 
  (b) in the case of an officer or authority it shall be 
deemed that he is guilty of misconduct and the competent 
authority shall initiate action under the relevant disciplinary 
rules. 
 
 (2) In addition to taking  action under sub -section (1) 
the pay and allowances paid to the person whose 
appointment is in contravention of  the provisions of this Act 
shall be deemed to be an illegal payment and a loss to the 
Government or, as the case may be, to the concerned 
institution and the same shall be recoverable by surcharging 
the same under the 15Telangana State Audit Act, 1989 
against the person, officer or authority who makes such 
appointment in contravention of the provisions of this Act or 
where such surcharge is not possible u nder the said Act in 
accordance with such manner as  may be prescribed 
including as arrears of land revenue. 
 
7. No person who is a daily wage employee and no 
person who is appointed on a temporary basis under  
16[section 3 and no person who] is continuing as such at the 
commencement of this Act shall have or shall be deemed 
ever to have a right to claim for regularisation of services on 
any ground whatsoever and the services of such person 
shall be liable, to be t erminated at any time without any 
notice and without assigning any reasons: 
 
                                                           
15. Adapted in G.O.Ms.No.45, Law (F) Department, dated 01.06.2016. 
16. Substituted for “section 3 and” by Act No.3 of 1998. 
Bar for 
regularisation of 
services. 
Act 9 of 1989. 
[Act No.2 of 1994]  7 
 17[Provided that the services of those persons 
continuing as on the 25th November, 1993 having 
completed a continuous minimum period of five years of 
service on or before 25th Nov ember, 1993 either on daily 
wage, or nominal muster roll, or consolidated pay or as a 
contingent worker on full time basis, shall be regularized in 
substantive vacancies, if they we re otherwise qualified 
fulfilling the other conditions stipulated in the sc heme 
formulated in G.O.Ms.No.212, Finance & Planning 
(FW.PC.III) Department, dated the 22nd April, 1994:] 
 
 18[Provided further that the services of a person who 
worked on part -time basis continuously for a minimum 
period of ten years and is continuing as such on the date of 
the commencement of this Act shall be regularized in 
accordance with the scheme formulated in G.O.(P).112, 
Finance & Planning (FW.PC.III) Departme nt, dated the 23rd 
July, 1997:] 
 
 19[Provided also that] in the case of Workmen falling 
within the scope of section 25 -F of the Industrial Disputes 
Act, 1947, one month ‟s wages and such compensation as 
would be payable under the said section s hall be paid in 
case of termination of Services: 
 
 19[Provided also that]  nothing in this section, shall  
apply to the Workmen governed by Chapter V -B of t he 
Industrial Disputes Act, 1947. 
 
 Explanation:- For the removal of doubts it is hereby 
declared that the termination of services under this section 
shall not be deemed to be dismissal or removal from service 
within the meaning of article 311 of the Constitution or of 
                                                           
17. First proviso inserted by Act No.3 of 1998 and subsequently 
substituted by Act No.27 of 1998. 
18. Provisos one and two inserted by Act No.3 of 1998. 
19. Substituted by Act No.3 of 1998. 
8  [Act No.2 of 1994] 
any other relevant law providing for the dismissal or removal 
of employees but shall only amount to termination 
simpliciter, not amounting to any punishment. 
 
20[7A. (1) Notwithstanding any Government order, 
judgement, decree or order of any Court, Tribunal or other 
authority, no person shall claim for regularization of service 
under the first proviso to section 7 as it was incorporated by 
the Andhra Pradesh (Regulation of Appointments to Public 
Services and Rationalis ation of Staff Pattern and Pay 
Structure) (Amendment) Act, 1998. 
 
 (2) No suit or other proceedings shall be maintained or 
continued in any Court, Tribunal or other authority against 
the Government or any person or other authority whatsoever 
for regularization of services and all such pending 
proceedings shall abate forthwith. 
 
 (3) No Court shall enforce any decree or order 
directing the Government or any person or other authority 
whatsoever for regularization of services.] 
 
8. For the purpose of enforcing the provisions  of this Act, 
it shall be competent for the Government, the Pay and 
Accounts Officer,  the Director of Treasuries and Accounts, 
the Director of State Audit, Director of Accounts of the 
Project Department or any Head of the Department of the 
Government to issue such directions as they may deem fit 
to their subordinates and the subordinate shall comply with 
such directions where any subordinate officer is guilty of 
non-compliance with such directions it shall be deemed that 
he is guilty of misconduct for proceeding under the relevant 
disciplinary rules. 
 
                                                           
20. Section 7A inserted with marginal heading by Act No.27 of 1998. 
Power to give 
directions. 
Abatement of 
Claims. 
Act 3 of 1998. 
[Act No.2 of 1994]  9 
9. Notwithstanding anything contained in any judgment, 
decree or order of any court, tribunal or other authority, the 
claims for regular appointment of all daily wage employees 
and persons appointed on a temporary basis, shall stand 
abated and accordingly,- 
 
 (a) no suit or other proceeding shall be instituted, 
maintained or continued in any court, tribunal or other 
authority by the daily wage or temporary appointees against 
the Government or any person or authority whatsoever for 
the regularization of the services; 
 
 (b) no court shall enforce any decree or order directing 
the regularisation of the services of such persons; and 
 
 (c) all proceedings pending in any court or  tribunal 
claiming the regularisation of services shall abate. 
 
10. (1) No post shall be created in any office or 
establishment relating to a public service without the 
previous sanction of the competent authority. 
 
 (2) Any appointment made to any post created in 
violation of sub -section (1) shall be invalid and the 
provisions of sections 5, 6 and 7 shall mutatis mutandis 
apply to such appointments. 
 
21[10-A. Notwithstanding anything contained in this Act, the 
Government may regularize the services of the persons 
appointed on contract basis against the sanctioned posts in 
the Government, subject to fulfillment of  the following 
conditions: 
 
                                                           
21. Section 10A added  with marginal heading by G.O.Ms.No.16, 
Finance (HRM.I) Department, dated 26.02.2016. 
Abatement of 
claims. 
Creation of Posts. 
Regularisation of 
Services of 
persons 
appointed on 
contract basis. 
10  [Act No.2 of 1994] 
1. Availability of a post in the relevant category in the 
respective departments shall be the pre -requisite condition 
for considering regularization. 
 
2. Regularization may be considered only in respect of 
persons appointed on full time contract basis on a monthly 
remuneration. 
 
3. Regularization may be considered only in respect of 
eligible personnel working as on 2nd June, 2014, 
immediately before formation of Telangana State, and 
continuing till the date of proposed regularization. 
 
4. For the purpose of continuity the annual breaks in 
certain vacation departments like Education and Welfare 
Departments may be ignored. This cond onation shall not, 
however, apply in respect of breaks on account of 
unauthorized absence and disciplinary cases. 
 
5. The regularization shall be with prospective effect, i.e., 
from the date of issue of orders of regularization and 
appointment to the category. 
 
6. The backlog in reservations if any arising out of 
regularization as above shall be carried forward and treated 
as backlog vacancies for that particular category.] 
 
11. (1) Within a period of one month from the date of 
commencement of this Act, the Government shall constitute 
a Committee with an officer not less in rank than  a Secretary 
to Government as the Chairman and such number of 
members of such rank as they may deem fit, to review,- 
 
  (a) the existing staff pattern in any office or 
establishment employing persons belonging to any public 
service keeping in view the work load of such office or 
establishment; and 
Review 
Committees. 
[Act No.2 of 1994]  11 
  (b) the pay scales, allowances, exgratia, bonus, 
pension, gratuity and other terminal benefits and perquisites 
applicable to the post belonging to any public service of 
such office or establishment (other than th e teaching staff of 
the Universities) keeping in view the qualifications and job 
requirements of each such post. 
 
 (2) After undertaking review under sub -section (1) the 
committee shall submit a report with its recommendations to 
the Government for such ac tion as may be prescribed by 
rules made in this behalf. 
 
 (3) The Committee shall regulate its own procedure for 
discharging the functions under this section. 
 
 (4) All orders and decisions of the Committee shall be 
authenticated by the Chairman or a membe r authorized by 
him in this behalf. 
 
 Explanation:- For the purposes of this section 
Secretary to Government includes a Principal Secretary or 
Special Secretary to Government. 
 
12. (1) The Committee  constituted under section 11 shall, 
while discharging the duties  under this  Act, have all the 
powers of a Civil Court while trying a suit under the Code of 
Civil Procedure, 1908 in respect of  the following matters 
namely:- 
 
  (a) summoning and enforcing the attendance of any 
person and examining him on oath; 
 
  (b) requiring the discovery and production of any 
document; 
 
  (c) receiving evidence on affidavits; 
 
Committee to 
exercise the 
powers of the Civil 
Court. 
Central Act V of 1908. 
12  [Act No.2 of 1994] 
  (d) requisitioning any public record or copy thereof 
from any court or office; and 
 
  (e) is suing commissions for the exami nation of 
witnesses or documents. 
 
 (2) For purposes of discharging its duties the 
Committee shall have the right to inspect or cause to be 
inspected a ny office or establishment referred to in sub -
section (1) of section 11. 
 
13. (1) Any person or authority who contravenes the 
provisions of this Act shall apart from the penalties 
otherwise provided for, be punishable with imprisonment for 
a term which shall not be less than six months and which 
may extend upto two years and also wi th fine which shall 
not be less than five thousand rupees but which may extend 
upto ten thousand rupees. 
 
 (2) No Court shall take cogniz ance of an offence 
punishable under this section except with the previous 
sanction of the Government. 
 
14. Whoever abets any offence punishable under this Act 
shall be punished with the punishment provided for in this 
Act for such offence. 
 
15. Where an offence against any of the provisions of this 
Act or any rule made thereunder has been committed by a 
Company, every person, who at the time of the offence was 
committed, was incharge of, and was responsible to the 
company for the conduct shall be deemed to be guilty of the 
offence and shall be liable to be proceeded agai nst and 
punished accordingly: 
 
 Provided that nothing c ontained in this sub -section 
shall render any such person liable to any punishment, if he 
Offences and 
Punishments. 
Penalty for 
abetters. 
Offences by 
Companies. 
[Act No.2 of 1994]  13 
proves that the offence was committed without his 
knowledge or that he had exercised all due diligence to 
prevent the commission of such offence. 
 
 (2) Notwithstanding anything in sub -section (1) where 
any such offence has been committed by a company and it 
is proved that the offence, has been committed with the 
consent or connivance of, or is attributable, to any neglect 
on the part of, any Director, Manager, Secretary or other 
officer of the Company, shall be liable to be proceeded 
against and punished accordingly. 
 
 Explanation:- For the purpose of this section,- 
 
  (a) “Company” means a company as defined in the 
22Companies Act, 1956 and includes a University, a firm, a 
society or other association of individuals; and 
 
  (b) “Director” in relation to,- 
 
   (i) a “firm” means a partner in the firm; 
 
   (ii) a  University, a society or other association of 
individuals means the person who is entrusted with the 
power to make appointments in the case of a University 
under the concerned law under which the University is 
established, and in other cases, under the ru les of the 
society or other association, as the case may be. 
 
16. No suit, prosecution or other legal proceedings shall lie 
against any person for anything which is in good faith done 
or intended to be done in pursua nce of this Act or the rules 
made thereunder. 
 
 
                                                           
22. See now Companies Act, 2013 (Central Act No.18 of 2013). 
Bar of jurisdiction 
of Civil Courts. 
Central Act I of 1956. 
14  [Act No.2 of 1994] 
17. The provisions of this Act shall have effect 
notwithstanding anything contained in any other law for the 
time being in force or any judgement, decree or order of any 
court, tribunal or other authority. 
 
18. (1) The Government may by notification, make rules for 
carrying out all or any of the purposes of this Act. 
 
 (2) Every rule made under this Act shall immediately 
after it is made, be laid before the Legislature of the State, if 
it is in session and if it is not in session, in the session 
immediately following for a total period of fourteen days 
which may be comprised in one session or in two 
successive sessions, and if, before the expiration of the 
session in wh ich it is so laid or the session immediately 
following the Legislat ure agrees in making any modification  
in the rule or in the annulment of the rule, the rule shall, from 
the date on which the modification or annulment is notified, 
have effect only in such  modified form or shall stand 
annulled as the case may be so, however, that any such 
modification or annulment shall be without prejudice to the 
validity of anything previously done under that rule. 
 
19. The Schedule to this Act shall constitute the guidelines 
for the interpretation and implementation of this Act. 
 
20. The Andhra Pradesh (Regulation of Appointments to 
Public Services and Rationalisation  of Staff Pattern and Pay 
Structure) Ordinance, 1993 is hereby repealed. 
  
Act to override 
other laws. 
Guidelines for 
interpretation of 
Act. 
Repeal of 
Ordinance 8 of 
1993. 
Power to make 
rules. 
[Act No.2 of 1994]  15 
THE SCHEDULE 
 
THE STATEMENT OF OBJECTS AND REASONS TO THE 
ANDHRA PRADESH [REGULATION OF APPOINTMENT TO 
PUBLIC SERVICES AND RATIONALISATION OF STAFF 
PATTERN AND PAY STRUCTURE] BILL, 1993 
 
 The Constitution envisages the State to be a welfare 
State. The long cherished dictum of Bentham is that the 
State should try to maximise th e good to maximum number 
of its citizens.  State Government has to collect taxes and 
non-taxes from its citizens who can afford to pay so that 
such funds can be used for maintaining law and order which 
is a pre -requisite for any orderly Government and use t he 
rest of the funds for the welfare of various sections of the 
society. In this process Government has to necessarily have 
its own employees to collect taxes and implement the 
welfare and developmental programmes.  The cost of such 
Government employees is,  therefore, a necessary item of 
expenditure of the State Government.  But, the amount so 
spent on its staff should be reasonable and should leave 
adequate amount for taking up welfare and developmental 
activities for the rest of citizens.  The percentage of the 
employee population including their families to the total 
population of our State is about 10%.  It may not be always 
possible to limit expenditure on the employees to that 
percentage but at the same time it should not be such that 
the staff‟s expenditure leaves very little for remaining 90% of 
the people. 
 
 The number of employees has been increasing at an 
enormous rate.  The census of Government employees 
conducted by the State Government in 1976, 1981 and 1988 
and as projected in 1993 shows that the number of 
employees of the Government, Universities, Institutions 
receiving Grant -in-Aid and Public Sector Undertakings, 
Local Bodies has increased from 6.78 lakhs in 1976 to 12.34 
16  [Act No.2 of 1994] 
lakhs in 1993 which constituted an increase of 82%.  Out of 
this, the employees of the Departments of the State alone 
increased from 2.85 lakhs to 5.56 lakhs representing an 
increase of 95%.  The Publi c Sector Undertakings grew at 
128% from 1.44 lakhs to 3.28 lakhs. Among the Government 
employees and Local Body employees, the class IV and 
other categories constitute about 41%. 
 
 The expenditure particulars show that the amount 
spent on the salaries, all owances and pension of 
Government employees, Panchayat Raj employees, 
employees paid out of the Grant -in-Aid, amounts to a figure 
of Rs.4277 crores in 1993 -94 salaries on the due dates.  
Government considers that it is not fair that people‟s interest 
should be neglected and even sacrificed by not taking up 
schemes just to pay salaries to its employees. 
 
 In addition to the salary and pension commitment there 
is a heavy debt servicing burden on the Government.  The 
debt also has been increasing from year to ye ar. In 1983 the 
total outstanding debt was Rs.2543 crores.  It has now 
reached Rs. 10970 crores during 1993 -94. At present, the 
Government are paying as much as Rs.1012 crores f or 
payment of interest and Rs. 330 crores for repayment o f 
principal amount every year. The total amount of non -plan 
items of expenditure in 1993 -94 is amounting to Rs.6222 
crores, which cannot be avoided.  The Government are not 
able to complete a number of Irrigation Projects and Power 
Projects because of lack o f funds.  For the same reason 
productive assets like completed irrigation projects and 
roads are not being properly maintained resulting in 
wastage of assets whose replacement will cost several 
hundreds of cores of rupees.  At present, the Government 
are spe nding 81% of the debt they receive from the 
Government of India, Market borrowings and all other 
categories of loans for repayment; which means only 19% of 
the total debt is being added to our resources. But it is 
[Act No.2 of 1994]  17 
estimated that from next year onwards the repayment will be 
more than the debt receipts. If the Government are caught in 
such a debt trap the amount available to the State 
Government will be limited to its own tax and non -tax 
revenues and the devolutions from the Government of India.  
The devolutio ns expected from the G overnment of India is 
about Rs.1698 crores in 1993 -94. Since the expenditure on 
establishment is already 10 5% of the own tax and non -tax 
revenues of the State, it can be seen that between this 
expenditure and other non -plan expenditur e the 
Government would have exhausted the most of the 
resources leaving very little for welfare schemes and 
developmental programmes.  Since no Government can 
allow such total neglect of welfare and developmental 
activities the employees of the State will n ot be getting 
salaries on time and eventually they will not be getting their 
full salary also. 
 
 The irregular appointments are adversely affecting the 
interest of several thousands of unemployed persons who 
have registered in the employment exchange and awaiting 
their turn for orders.  It is also adversely affecting the 
interests of Scheduled Castes, Scheduled Tribes and 
Backward Classes who have reservation in employment 
since the N.M.R.  appointments are not taking care of the 
reservation for these catego ries. Government have 
constituted District Selection Committees and some adhoc 
Selection Committees besides the Andhra Pradesh Public 
Service Commission to take up recruitment in accordance 
with law in Government Departments.  Irregular 
appointments are depriving these legitimate recruiting 
bodies from performing their functions.  Irregular 
appointments in excess of sanctioned strength will also 
result in industrial undertakings becoming unviable and 
eventually sick.  When a unit goes sick, it result s in 
retrenchment and even winding-up, thus, adversely affecting 
the interests of the existing employees who are recruited 
18  [Act No.2 of 1994] 
against sanctioned strength and through authorised process 
of selection. Similarly unauthorised appointments over and 
above the sanctioned s trength in Government Departments 
would also increase the number of employees and to that 
extent militate against the Government looking after the 
existing employees who have been recruited through proper 
channel. The Act will, therefore, protect the inter ests of 
candidates in Employment Exchanges, reserved categories, 
the existing employees who were recruited through proper 
channel and the legitimate functions of the recruiting 
agencies. 
 
 From the above, it can be seen that the financial 
position of the State arising out of excessive expenditure on 
staff is so alarming that it cannot be tackled by ordinary 
administrative actions and instructions.  It is, therefore, 
thought that a time has come when we have to provide for 
deterrent action for illegal and irr egular appointments by 
enacting a law.  It has accordingly been decided to enact a 
law to achieve the following objects, namely:- 
 
 (a) totally banning such appointments in the institutions 
covered by legislation; 
 
 (b) imposing stringent penalties for maki ng 
appointments by public servants on violation of the law; 
 
 (c) to protect public servants from being held for 
contempt for non -compliance of the orders of Tribunal or 
High Court and also for abatement of pending cases 
claiming regularisation of services  which are already filed 
before the courts of law by making a suitable provision there 
for; and 
 
 (d) to protect the interests of candidates registered with 
Employment Exchange, the reservation rights of Scheduled 
Castes, Scheduled Tribes and Backward Classes, the rights 
[Act No.2 of 1994]  19 
of the existing employees who are recruited through proper 
channel and the functions of Andhra Pradesh Public Service 
Commission, District Selection Committees and other 
selection Committees constituted by the Government. 
 
 The legislation will prevent further deterioration of 
finances of the State and at the same time conserve the 
resources for the welfare and developmental activities. 
 
 As the Legislative Assembly was not then in session 
having been prorogued and as it was decided to give effect 
to the above decision immediately the Andhra Pradesh 
(Regulation of Appointments to Public Services and 
Rationalisation of Staff Pattern and Pay Structure) 
Ordinance, 1993 (Andhra Pradesh Ordinance 8 of 1993) was 
promulgated by the Governor on the 24th November, 1993. 
 
 This Bill seeks to give effect to the above objectives. 
 
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