Misuse of office? Rs 1,137 crore project awarded to firm owned by Telangana CM Revanth Reddy’s kin, says KTR

Rama Rao said the central fund of ₹1,137 crore released under the AMRUT 2.0 scheme was funneled into a company owned by the chief minister's brother-in-law Sudini Srujan Reddy.

Published Sep 21, 2024 | 8:00 PMUpdated Sep 21, 2024 | 8:00 PM

KTR and Revanth Reddy. (File pictures)

BRS Working President KT Rama Rao accused Telangana Chief Minister A Revanth Reddy of misusing his office to award AMRUT 2.0 works worth ₹1,137 crore to his relative’s firm.

Rama Rao, known as KTR, said the central fund of ₹1,137 crore released under the AMRUT 2.0 scheme was funnelled into a company owned by the chief minister’s brother-in-law, Sudini Srujan Reddy.

Addressing reporters at Telangana Bhavan in Hyderabad on Saturday, 21 September, KTR accused Revanth Reddy of favouritism in awarding the work of drinking water and sewerage projects in towns under the AMRUT 2.0 scheme to Shoda Constructions Pvt Ltd. The BRS leader said Shoda, owned by Srujan Reddy, had neither the eligibility nor the necessary wherewithal to execute the works.

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Tip of the iceberg

He said that the scam was much bigger than what he had uncovered since the total AMRUT 2.0 works were for about ₹8,888 crore. He said if the scam’s details were revealed, Revanth Reddy would have to resign as chief minister, as BS Yediyurappa did in Karnataka in 2011.

KTR said that to prevent the scam from leaking out, the Municipal Administration Department, which the chief minister’s watch, had awarded AMRUT 0.2 works to Shoda Constructions, through BSE-listed Indian Hume Company Ltd, which acted as a smokescreen.

The BRS leader said that the Municipal Administration Department awarded the ₹1,137 crore work to Indian Hume Pipes after calling tenders in February this year. The company, complying with SEBI regulations, said in a stock exchange filing that of the ₹1,137 crore works awarded, it would execute only 20 percent, and the rest would be taken up by a joint venture with Shoda Constructions and AMR Projects.

KTR said Shoda’s net profit was shown as just ₹2 crore. “How can such a small company execute works valued at about ₹1000 crore (after 20 percent of the works to be executed by Indian Hume Pipes)?” he asked while claiming that it was only the “tip of the iceberg.”

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KTR asks BJP to come clear

He demanded that the state government immediately make public the GOs relating to the awarding of work under AMRUT 2.0.

The BRS leader said that he had already written to Union Housing and Urban Development Minister Manohar Lal Kattar to immediately order an inquiry into the scam and let the people know how the chief minister’s family was dipping into public funds. KTR asked the Union minister to immediately order the inquiry by any agency the Centre deemed fit and prove the BJP’s stand that it was not working hand in glove with the Congress government in Telangana.

Quoting sections 7, 11, and 13 of the Prevention of Corruption Act, 1988, KTR said that people’s representatives, including those holding the position of the chief minister, cannot reward family members with undue favours, and if they did, they would have to pay a heavy price.

The BRS leader said that the BJP has to come out clean on whether it has any tacit understanding with the Congress. “On one hand the prime minister says that there is RR Tax (Revanth-Rahul Tax) in Telangana while the BJP state leaders heap praises on Revanth Reddy for running the government. What is this azabh prem ki ghazab kahani? he said.

“Let the BJP say clearly whether the central funds were misused or not. Let it order an inquiry. A few days ago, BJP floor leader Alleti Maheswar Reddy raised the issue of AMRUT 2.0 funds but he too has gone silent. Maybe there was pressure from his bosses in Delhi not to talk about the scam,” KTR said.

(Edited by Majnu Babu).

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