15% commission, threats from CMO, favouritism: Telangana firm’s scathing allegations

Shocking allegations of wrongdoing—favouring select contractors and thereby causing massive losses to the exchequer—have been made in an open letter addressed to the Builders Association of India (BAI).

South First Desk

Published Oct 15, 2026 | 9:33 AM ⚊ Updated Oct 15, 2026 | 9:33 AM

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The letter alleged that several other contractors who intended to bid had been threatened by the CMO to deter them from participating.

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Synopsis: RVM Constructions India Ltd has alleged irregularities in tenders floated by Hyderabad Growth Corridor Ltd for radial roads in Telangana, claiming that contractors were threatened by the Chief Minister’s Office against participation. Its letter to the Builders Association of India alleges that Sushee Infra was unfairly disqualified despite quoting prices reportedly ₹600 crore lower than those of the L1 bidders, and accuses Chief Minister Revanth Reddy of demanding a 15 percent commission.

What has so far remained a subject of whispers in the corridors about the functioning of the Revanth Reddy government in Telangana has now come out into the open.

Shocking allegations of wrongdoing—favouring select contractors and thereby causing massive losses to the exchequer—have been made in an open letter addressed to the Builders Association of India (BAI).

Dated 13 October, the letter was written by a leading construction company, RVM Constructions India Ltd, regarding tenders floated by Hyderabad Growth Corridor Ltd (HGCL) for radial roads connecting the Outer Ring Road to internal roads.

Contrary to the usual practice of 10–12 companies participating in such contracts, only four submitted bids: NCC, BVSR, GKC and Sushee Infra, the last of which belongs to the family of senior Congress legislator K Rajagopal Reddy. The letter alleged that several other contractors who intended to bid had been threatened by the Chief Minister’s Office to deter them from participating.

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‘Expedited evaluations to favour bidders pre-selected by the Chief Minister’

The main allegations made in the letter are as follows:

• During the technical evaluation, Sushee Infra was disqualified on the ground that an experience certificate issued to the company by the Executive Engineer had not been countersigned by the Superintending Engineer (SE). This was despite Sushee Infra clarifying that the certificate had been signed by the Regional Officer, a senior official equivalent in rank to an SE.When the client rejected this explanation, Sushee Infra submitted an alternative certificate for similar work that met the qualifying criteria, but that too was not accepted. Over the years, Sushee Infra has executed some of the most challenging projects, including in the mountainous border region between India and China.
• Sushee Infra stated that it had bid for all three packages and that its quoted prices were significantly lower than those of the L1 bidders, amounting to a total difference of ₹600 crore.
• Normally, a client such as HGCL seeks clarification from a bidder on whether it meets the qualifying criteria before proceeding with the evaluation.Instead, the letter alleged, the client completed both the technical and financial evaluations within a week and issued Letters of Acceptance (LOAs) within 24 hours of the opening of the financial bids, apparently to award the contracts to companies allegedly pre-selected by the Chief Minister.
• The letter also pointed to the widely known political rift between Rajagopal Reddy and Revanth Reddy, arguing that the manner in which the contracts were awarded raised concerns about political influence. It further alleged that the Chief Minister had demanded a 15 percent commission for awarding the contracts.
• Nearly ₹20,000 crore is reportedly due to contractors in Telangana against certified bills, while substantial commissions are allegedly being demanded for the release of payments. Despite the Builders Association of India (BAI) holding several meetings to address the issues faced by contractors, the problem of pending payments remains unresolved.

Also Read: KTR accuses Congress of conspiring to privatise Singareni, demands probe into missing coal

Demand for transparent re-tendering

Rajagopal Reddy has been one of the vocal critics of the Congress government, often accusing the Chief Minister and ministers of large-scale corruption in the execution of various projects, including those involving the state-owned Singareni Collieries Company.

Contractors and others have also staged protests at the office of Finance Minister Mallu Bhatti Vikramarka over non-payment of bills. The minister’s office has since been heavily guarded, with visitors without valid passes being denied entry to the floor where he sits.

The letter urged the BAI to press for an open and transparent tendering process that gives all eligible contractors an equal opportunity to participate. It also requested the association to ensure that contractors are paid on time and without commissions being demanded.

(Edited by Dese Gowda)