‘CM’s aide told us not to bid’: Rajagopal Reddy’s bombshell claims over Rs 3,300-crore Telangana road project
Congress MLA K Rajagopal Reddy alleged that companies from Telangana were being denied work and that a caucus from Andhra Pradesh is influencing decisions by the State government.
Amid allegations of wrongdoing in the award of contracts for the Rs 3,300-crore radial ring road project on the outskirts of Hyderabad, senior Telangana Congress legislator K Rajagopal Reddy has revealed that a close aide of Chief Minister A Revanth Reddy had suggested that his company should not bid for the project.
The revelation by Rajagopal Reddy, whose family owns Sushee Infra, comes in the wake of an open letter addressed to the Builders Association of India (BAI) by a Telangana contractor. The contractor alleged that procedures were completely violated in awarding contracts to three companies, each of which was given one package after the radial ring road project had been divided into three packages.
“When tenders were called, Rudra Uday Simha, a close aide of the Chief Minister, called me to suggest that my family company, Sushee Infra, should not participate in the bidding process. I told him that the company had executed projects in the most difficult terrains in the country. I also conveyed that the company was run by a professional setup headed by my son, and that they would decide. My son eventually decided to bid for the contract, given that we have vast experience in the field,” Rajagopal Reddy told South First.
Incidentally, Uday Simha was among those named as accused in the 2015 Cash-for-Vote scam, alongside Revanth Reddy, Harry Sebastian and others, by the Telangana Anti-Corruption Bureau (ACB) and the Enforcement Directorate (ED). They were accused of allegedly trying to bribe nominated MLA Elvis Stephenson during the 2015 MLC elections.
Uday Simha has been questioned multiple times by the Income Tax Department and the ED regarding the ₹50 lakh seized in connection with the scandal. An ED chargesheet was filed against all the accused in 2021.
After Revanth Reddy became Chief Minister, Uday Simha also travelled with him to foreign destinations.
Rajagopal alleged that companies from Telangana were being denied work and that a caucus from Andhra Pradesh is influencing decisions by the State government.
He also alleged that subsequent developments clearly reflected a nexus between the Chief Minister and the three companies — NCC, BVSR and GKC — which were awarded the contracts, while Sushee Infra was disqualified on “flimsy grounds”.
Firms qualified differently across packages
According to a note provided to South First by the Congress legislator, the same firms were assessed differently for each package.
GKC was rejected for Package 1 but qualified for Packages 2 and 3. Likewise, BVSR qualified for Packages 1 and 2 but was rejected for Package 3. Package 3 was left with only two qualified bidders, leaving barely any competition for a Rs 1,034-crore contract.
“The outcome is more telling than the process. Three firms bid across three packages, and each walked away with exactly one: Package 1 went to NCC, Package 2 to BVSR and Package 3 to GKC,” the note said.
RVM Constructions, a Telangana contractor that addressed the letter to BAI, alleged that the contracts were awarded in exchange for a 15 per cent “commission”.
Rajagopal Reddy told South First that his company had quoted Rs 400 crore less than the estimate provided by the government agency, while the contracts were ultimately awarded at 3–4 per cent above the estimate. “The government could have saved at least Rs 600 crore, but it has chosen not to,” the legislator said.
Sushee Infra set to move Supreme Court
The Radial Road 2 project is an 81-km greenfield expressway from Hyderabad’s Outer Ring Road to NH 167 near Kodangal in Mahboobnagar district. The project is being implemented by Hyderabad Growth Corridor Limited, an arm of the Hyderabad Metropolitan Development Authority.
Rajagopal is unlikely to give up the fight against his own party’s government soon. Sushee Infra, it is learnt, is moving the Supreme Court after failing to secure immediate relief from the Telangana High Court.