Undavalli takes on CM Chandrababu Naidu over Amaravati Bonds

Poking fun at Naidu, the former MP said the Chief Minister got an award for transparency in governance when nothing was transparent.

Published: 04th September 2018 06:05 AM  |   Last Updated: 04th September 2018 06:05 AM   |  A+A-

Former MP Undavalli Arun Kumar

By Express News Service

RAJAMAHENDRAVARAM: Former MP Undavalli Arun Kumar has attacked Chief Minister N Chandrababu Naidu for pushing the State into a debt trap by taking loans in the name of Amaravati Bonds with heavy interest rate of 10.30 per cent. Speaking to reporters here on Monday, he pointed out that even banks are offering only 7.25 per cent interest per annum. 

How fair is it for the government to pay 10.3 per cent, which gets compounded quarterly, he asked, adding, “The State government has paid `17 crore as brokerage, which is very high.” Explaining how the State government has issued Amaravati Bonds, the former MP said a person had approached the Chief Minister on January 12, 2017 proposing a loan to the State in return of just `1 remuneration. 

“The government accepted his proposal and later, that person floated a company named Arranger which facilitated in issuing Amaravati Bonds for `2,000 crore and he was paid `17 crore as brokerage. CRISIL gave rating to the bonds as they are backed by the State government,” Undavalli alleged.  He reiterated that he stands by what he said in the past regarding the inconsistencies in the payment of bills and submission of bills with regard to Polavaram project. “I am ready to prove what I said, but they are not coming forward,” he said. 

Poking fun at Naidu, the former MP said the Chief Minister got an award for transparency in governance when nothing was transparent. Commenting on the high prices of petrol and liquor, Undavalli said like nowhere in the country, the State government was collecting an additional `2 per litre of petrol. Undavalli also found fault with Leader of the Opposition Jaganmohan Reddy for asking people to take the money offered by the ruling party, but vote for him. “How responsible is it on part of the Leader of Opposition?” he questioned.

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