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The Andhra Pradesh Reorganization Act, 2014 was enacted by the Parliament which declares the division of the State of Andhra Pradesh to form two states called residuary Andhra Pradesh as well as Telangana. The Act also called the Telangana Act embraces of entire details of the splitting up of assets along with liabilities, settle boundaries of the states yet to be declare and settle the position of Hyderabad. The Bill though initiated in the Legislative Assembly of the State of Andhra Pradesh, it was declined on January 2014. The House of People passed the Bill on February 18, 2014 and by the Rajya Sabha on February 20, 2014. The assent of the President was obtained on March 1, 2014 and came into force on June 2, 2014. After the commencement of the Act, the 29th State (Telangana) was formed in India.

From the date of initiation of the Act, Hyderabad shall form the common capital for the State of Andhra Pradesh and State of Telangana for a term of up to ten years. After the expiration of the said term, capital of Telangana shall be Hyderabad and the capital of State of Andhra Pradesh shall be newly declared. The Act further provides that the Central Government is empowered to establish an expert committee to conduct study on different choices with regard to the new capital and make relevant advice within a period of six months from the commencement of the present Act. The Governor shall be responsible to administer the State of Andhra Pradesh as well as State of Telangana from the beginning of the Act for such term concluded by the President. In order to administer the common capital of the States, the Governor is given special duty for the safety of life, freedom and property of the people living in that location. Moreover, the duty entrusted to the Governor shall be extended to the subjects like maintenance of law and social order, internal safety and administration and allotment of Government structures in the common capital of the States.

The Central Government can appoint two advisors to help the Governor in discharge of his functions. The Act also amended the Schedule I and Schedule IV of the Constitution of India. The eighteen existing members of the Rajya Sabha that embodies the prevailing State of Andhra Pradesh shall be considered to have chosen to take the seats allocated to the States of Andhra Pradesh and Telangana as provided under the Schedule I of the present legislation. The Act further amends the Delimitation of Parliamentary and Assembly Constituencies Order, 2008 as specified under the Schedule II of the current legislation. The total number of seats allotted to the Legislative Assembly of the State of Andhra Pradesh and Telangana shall be 175 and 119 correspondingly. Moreover, 50 seats are allotted in the Andhra Pradesh Legislative Council and 40 seats given to the Telangana Legislative Council. The Act increased the number of seats in the Legislative Assembly of the States from 175 to 225 and 119 to 153 and the Election Commission is competent to determine the delimitation of the state constituencies.

The High Court of Judicature in Hyderabad shall be the same High Court for the newly constituted State until a new State is established for the State of Andhra Pradesh according to the provisions of Article 214 of the Constitution of India. The Act contains provision for the permission of expenses and distribution of revenues and the allocation of assets and debts between the State of Andhra Pradesh and Telangana. The Act amended Article 168 and 371 D of the Constitution of India. The President is empowered under the Act to issue orders in consonance with the provisions of the Act. The orders issued under the Act are to be laid before the Lok Sabha and Rajya Sabha compulsorily as provided under the Act. In 1968, the Parliament has enacted Andhra Pradesh and Mysore (Transfer of Territory) Act to transfer some territories of Mysore State to the Andhra Pradesh State.