Sridhar Babu clarified that TGIIC issued 'Rated, listed, senior, secured, taxable, redeemable non-convertible debentures on a private placement basis.'
Published Apr 12, 2025 | 10:32 AM ⚊ Updated Apr 12, 2025 | 11:48 AM
IT Minister Duddilla Sridhar Babu. (X)
Synopsis: Telangana IT Minister D Sridhar Babu refuted BRS leader KTR’s ₹10,000 crore scam allegations, clarifying no loan was taken and funds were raised legally through debentures, not bank credit. He emphasized the 400-acre Kancha Gachibowli land belongs to the state post-Supreme Court ruling, accusing BRS of spreading falsehoods to hinder development and damage Hyderabad’s growth.
Telangana IT Minister D Sridhar Babu on Friday, 11 April, took on the Opposition BRS and its leader KT Rama Rao, following the latter’s allegations that a scam worth ₹10,000 crore had taken place involving 400 acres of Kancha Gachibowli land.
The minister also refuted the claims that a loan was taken by the government, countering KTR’s claims, Sridhar Babu said, “Neither has TGIIC applied for any loan from any bank, including the ICICI, nor therefore, has ICICI given any loan to TGIIC. It is a total lie, and the government shall use its legal instruments against any and all people who are attempting to mislead people on the issue.”
He clarified that TGIIC issued “rated, listed, senior, secured, taxable, redeemable non-convertible debentures on a private placement basis in response to which, several investment / mutual funds have expressed confidence and invested in the bonds issued by the corporation. ICICI Bank is just a partner bank for the entire transaction.”
Speaking on the funds raised, he added, “The government thus raised ₹ 10,000 crore as per RBI guidelines and following all the laws of the land, both Central and State. In fact, the State Government of Telangana has issued a direct debit mandate in favour of the RBI for the bonds issue of ₹ 9,995.28 crore, which the RBI has duly confirmed.”
“While there is no question of any bank visiting the field because no loan was taken, on behalf of the investors, a Debenture Trustee had duly conducted an independent valuation of the land and verified that the land is suitable as collateral for the said levels of valuation. The brokerage firm was selected based on a competitive bidding process and was paid as per standard industry norms,” he further clarified.
While both debentures and loans involve borrowing money, a key difference lies in security: debentures are typically unsecured, meaning they are not backed by specific assets.
The BRS party’s resorting to AI-fabricated lies and misinformation to oppose Telangana’s development, especially in Hyderabad, has exposed their total political bankruptcy. I demand that they stop spreading false information and mudslinging regarding routine government financial…
— Sridhar Babu Duddilla (@OffDSB) April 11, 2025
Calling the allegations, “AI-fabricated lies and misinformation to oppose Telangana’s development,” Babu said, BRS have “exposed their total political bankruptcy.”
Reemphasizing that the said land belonged to the state government, the minister’s statement read: “The Telangana State Government recently won the Supreme Court case in regard to taking back 400 acres of land in Kancha Gachibowli from a private player (M/s IMG Bharata), who was allotted the same in 2004, after a protracted legal battle in High Court and then, the Supreme Court.”
He further added, “The Telangana State government through one of its arms, the Telangana State Industrial Infrastructure Corporation (TGIIC), reached out to the financial markets for raising funds, through routine and well-established norms, including the Reserve Bank of India (RBI) and other established precedents of raising of capital by any state government in lieu of its property.”
“TGIIC appointed iVAS, a subsidiary of CBRE, an IBBI-certified valuation consultant, in October 2024, which certified the value of the land is ₹20,563 crore. The land is litigation free, post the Supreme Court order.”
“Any insinuation that the said land does not belong to the Telangana State government, is both contempt of court and a direct attack on the developmental prospects of the state, and a misleading conspiracy to stall massive jobs creation,” he further added.
Addressing the BRS, Sridhar Babu said, “We sincerely advise the BRS party not to politicise every issue for no reason and demanded that its leaders stop opposing the development of Hyderabad, saying that these mindless, luddite reactions of BRS leaders do not augur well for democracy, the people and the state.”
(Edited by Sumavarsha)
