Synopsis:The Opposition BRS has demanded answers from the Telangana government over its allocation of five acres of government land to Tesseract Advanced Systems for ₹7 crore. The party alleged that the land was valued at ₹200 crore and questioned what role Chief Minister Revanth Reddy’s brother, Anumula Kondal Reddy, had in the company. Industries Minister D Sridhar Babu rejected the allegations as “blatantly false”, saying the allotment was made transparently.
The Bharat Rashtra Samithi (BRS) on Wednesday, 12 August, sought answers from the Telangana government over the allocation of five acres of government land, reportedly valued at ₹200 crore, to Tesseract Advanced Systems, a day after BRS working president KT Rama Rao (KTR) alleged that the company received the land for just ₹7 crore.
KTR noted that Kondal Reddy had identified himself as the company’s Chairman on LinkedIn.
Addressing a press conference on Tuesday, KTR said the company had a paid-up capital of ₹1 lakh and reportedly no employees, and questioned the role of Anumula Kondal Reddy, Chief Minister A Revanth Reddy’s brother, in the company.
He noted that Kondal Reddy had identified himself as the company’s Chairman on LinkedIn and represented the company at meetings, contrary to Industries Minister D Sridhar Babu’s statement that Kondal Reddy and the company had no connection.
KTR also questioned the basis for the difference between the claimed ₹200-crore value of the land and the ₹7 crore at which it was allotted.
He demanded a probe into the roles of the Chief Minister, his brother, Ministers and officials, and said the BRS would approach the Governor and the Lokayukta and pursue legal and constitutional remedies.
Questions over Tesseract’s employees, facilities and website
On Wednesday, the BRS issued 10 questions to the Telangana government regarding the allocation of land to Tesseract Advanced Systems.
Is Anumula Kondal Reddy the Chairman of Tesseract or not?
Why did Revanth Reddy’s brother, Anumula Kondal Reddy, identify himself as the Chairman of Tesseract on his LinkedIn profile? Why did he participate in a US-India Strategic Partnership Forum meeting in his capacity as Tesseract’s Chairman?
Why is Industries Minister Sridhar Babu denying any connection between Kondal Reddy and Tesseract?
When Kondal Reddy himself has identified himself as the company’s Chairman, why is Sridhar Babu claiming that there is no connection between Kondal Reddy and Tesseract?
Does Tesseract actually have a manufacturing facility?
Apart from what appears to be a small warehouse, does the company, which claims to operate in the aerospace and defence sectors, have a substantial manufacturing facility? Has Tesseract manufactured any products so far? If so, where are the details?
Does Tesseract have a genuine corporate office?
Apart from a small residential flat, does the company have a proper office? If so, where is it located? If Tesseract is a major aerospace and defence company, why is its registered address reportedly a small flat in Patancheru? Is the company actually operating from such a premises?
The BRS has questioned whether the company has a genuine corporate office.
Questions over Tesseract’s employees, facilities and website
How does the company operate without employees?
According to the company’s annual report, Tesseract has no employees on its payroll. How can a company claiming to manufacture aerospace and defence equipment operate without a single employee? How is its manufacturing activity being carried out?
Why does Tesseract’s website use photographs sourced from other companies?
If Tesseract has a genuine manufacturing facility, why has it used photographs apparently taken from the websites of major aerospace and defence companies instead of displaying photographs of its own facilities and products?
Why was ‘123456789’ listed as the company’s contact number?
Why was the contact number on Tesseract’s website initially listed as ‘123456789’, a nine-digit number? Where did this number come from, and why was it changed after BRS Working President KTR raised the issue?
Was due process followed before allocating five acres of land to Tesseract?
Did TGIIC or the State government conduct the necessary due diligence and background verification before allocating five acres of land, reportedly valued at more than ₹200 crore, to Tesseract? What eligibility criteria and procedures were followed?
How was such valuable public land allocated to a company with a paid-up capital of just ₹1 lakh?
What was the basis for allocating five acres of valuable public land to a company whose paid-up capital is reportedly only ₹1 lakh? How did a company with such limited capital and apparently no substantial manufacturing facility qualify for the allocation? How did it generate foreign-exchange earnings of ₹1 crore? What products or services generated these earnings, and who were the customers?
Why is the Congress government not providing complete clarity?
Tesseract claims to operate in the aerospace and defence sector, an area of strategic importance to the country. Will the Congress government make public the complete details of the company?
Industries Minister D Sridhar Babu maintained that the government followed all prescribed rules and procedures in allocating the land to Tesseract Advanced Systems Private Limited.
Speaking to reporters after a meeting at Indira Bhavan on Wednesday, Babu said the state government allotted land at ₹1.50 crore per acre, compared with ₹90 lakh per acre during the previous BRS government. He said the five-acre parcel was allotted for ₹7.5 crore in accordance with the applicable rules.
He said the Consultative Committee on Electronics System Design & Manufacturing (CCESDM) approved the proposal and that the allotment was made through a transparent process. The government, he added, was maintaining “100% transparency” in land allocations.
Babu asked KTR to explain the basis for his claim that the land is valued at ₹200 crore and rejected the allegations as “blatantly false”. He also said Tesseract had no connection whatsoever with the Chief Minister’s brother.
Babu termed the allegations as a “mind game” by the BRS and BJP aimed at diverting public attention and tarnishing the image of the Chief Minister’s family and the government. He alleged that the campaign, including the use of fake documents, was also intended to obstruct industrial development and discourage investment in Telangana.
The Minister accused the BRS of using “Goebbels-style propaganda” and said the people had rejected the party in the Lok Sabha and local body elections. He said the government would not tolerate the dissemination of false information intended to damage its reputation.