The Andhra Pradesh Prohibition of Absorption of Employees of State Government Public Sector Undertakings into Public Service Act, 1997
**THE ANDHRA PRADESH PROHIBITION OF ABSORPTION OF**
**EMPLOYEES OF STATE GOVERNMENT PUBLIC SECTOR**
**UNDERTAKINGS INTO PUBLIC SERVICE ACT, 1997.**
**(ACT NO. 14 OF 1997)**

**ARRANGEMENT OF SECTIONS**

**SECTIONS**

**1. Short title and commencement**

**2. Prohibition of absorption into public service**

**3. Abolition of Supernumerary posts**

**4. Schemes of rehabilitation**

**5. Repeal of Ordinances 25 of 1996 and Ordinance 4 of 1997**


-----

**THE ANDHRA PRADESH PROHIBITION OF ABSORPTION OF EMPLOYEES**
**OF STATE GOVERNMENT PUBLIC SECTOR UNDERTAKINGS INTO PUBLIC**
**SERVICE ACT, 1997**

**ACT No. 14 OF 1997**

[23[rd] April, 1997]

**AN ACT TO PROHIBIT ABSORPTION OF EMPLOYEES OF PUBLIC SECTOR**
**UNDERTAKINGS** **INTO** **PUBLIC** **SERVICE** **AND** **FOR** **MATTERS**
**CONNECTED THEREWITH OR INCIDENTAL THERETO:**

Whereas, certain State Government Public Sector Undertakings have
become sick or are likely to become sick and are closed or likely to be closed;

And whereas, the employees of such undertakings are demanding the
State Government and approaching the courts for absorption into public
service;

And whereas, the Andhra Pradesh Public Employment (Organisation of
Local Cadres and Regulation of Direct Recruitment) Order, 1975 and the
General Rules and Special Rules governing various posts in Public Service are
difficult to be reconciled with any such absorption of such employees into
public service as the various State Government Public Sector Undertakings are
governed by different terms and conditions of service;

And whereas, such absorption of the employees of such Public Sector
Undertakings would result in an enormous drain on the State finances
seriously affecting the developmental programmes of the State and hence
against public Service;

Be it enacted by the Legislative Assembly of the State of Andhra Pradesh
in the Forty-eighth Year of the Republic of India, as follows:
**1. Short title and commencement - (1) This Act may be called the Andhra**
Pradesh Prohibition of Absorption of Employees of State Government Public
Sector Undertakings into Public Service Act, 1997.

(2) It shall be deemed to have come into force with effect from the 26th
November, 1996.

**2. Prohibition of absorption into public Service - Notwithstanding anything**
contained in any contract or agreement or any judgment, decree or order of any
court, Tribunal or any other authority or any order or proceedings of the State
Government, or any officer of the State Government, no employee of a State
Government Public Sector Undertaking shall be or shall ever be deemed to be
entitled to absorption into public service from the date of commencement of
this Act only on the ground that such undertaking has become sick or is likely
to become sick or is closed or is likely to be closed and accordingly,
(a) all orders issued by the Government or any other authority
appointing any such employee to any post in public service on any
such ground shall stand cancelled with effect from the 30th
November, 1996.

(b) no suit, or other proceeding shall be instituted, maintained or
continued in any court, Tribunal or any other authority against the
State Government or any person or other authority whatsoever for
such appointment or absorption into public service; and

(c)  no court shall enforce any decree or order directing such
appointment or absorption.

**Explanation: For the purposes of this section, the expression ‘Public Service'**


-----

means, services in any office or establishment of,
(a)the Government;

(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 University; and

(e) any other body established by the State Government or by a
society 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 receiving aid
from the Government.

**3. Abolition of Supernumerary posts - Notwithstanding anything contained**
in any contract or agreement or any judgment, decree or order of any court,
Tribunal or other authority or any order or proceeding of the State Government
or any officer of the State Government, any supernumerary post created for
appointment or absorption to any post in public service of any such employee
on any such ground specified in section 2 shall stand abolished with effect
from the 30th November, 1996.

**4. Schemes of rehabilitation - Nothing in this Act shall disentitle any such**
employee to the benefits of any scheme of rehabilitation under the relevant
orders issued by the Government from time to time.

**5. Repeal of Ordinance 25 of 1996 and Ordinance 4 of 1997 - The Andhra**
Pradesh Prohibition of Absorption of Employees of State Government Public
Sector Undertakings into Public Service Ordinance, 1996 and the Andhra
Pradesh Prohibition of Absorption of Employees of State Government Public
Sector Undertakings into Public Service Ordinance, 1997 are hereby repealed.


-----

