Once again, Telangana government has faced a setback in the High Court over freezing of AP Higher Education Council’s funds kept in some branches of the State Bank of Hyderabad. Responding on a petition filed by the APHEC, the high court dismissed the Telangana government’s plea to maintain status-co on this issue and orders the AP and Telangana governments to file counters before two weeks and adjourned the case to February 25th.

State Bank of Hyderabad freezes the Rs.120 crores funds of the APHEC upon a request from the Telangana government. Hence, APHEC has filed a petition challenging the SBH’s decision to freeze the account. Telangana government argues that since it has constituted a separate higher education council for the Telangana state, it can’t let the APHEC alone to consume the common funds. So, it asks the SBH to freeze the APHEC’s funds and the bank obliges its appeal.