Questioned high interest rate, not graft: Undavalli  

Former MP Undavalli Arun Kumar has said he never said there was corruption in issuing Amravati Bonds, but only questioned its high-interest rate.

Published: 16th September 2018 02:35 AM  |   Last Updated: 16th September 2018 06:38 AM   |  A+A-

By Express News Service

RAJAMAHENDRAVARAM : Former MP Undavalli Arun Kumar has said he never said there was corruption in issuing Amravati Bonds, but only questioned its high-interest rate.Speaking to media persons here Saturday, he said AP State Planning Commission vice-chairman Kutumba Rao has said that he would resign if it was proved that there was corruption in issuing Amaravati Bonds.

“But, I have never mentioned about corruption. All I asked was why 10.36 per cent of interest is being paid on the bonds when it was clearly mentioned in the GO that interest should not be more than 8 per cent,” he pointed out. 

He said if the interest rate was more than 9 per cent, people in the State would be ready to invest, as the State government was standing as guarantee. The former MP demanded answers from the State government on its objections to audit in the construction of capital city Amaravati. “Kutumba Rao said he was ready anytime for a debate, but when I have tried to approach him twice, I was told he was out of station,” he said.

He said he was happy that Kutumba Rao came forward to provide requested information with regard to Polavaram, Pattiseema, housing scheme and construction of Amaravati, if one approaches his office. “I am ready to go anywhere, anytime to get the information. All I want are answers,” he maintained. 

Undavalli said Japan-based Maaki Associates had submitted proposals and designs for the construction of High Court buildings at a cost of `95.2 crore, but, they were rejected because they resemble Chandigarh Assembly. The company was paid `1.15 crores to meet the expenses. “When their work is not up to the mark, why did the government pay such a huge amount? ” he questioned. 

The Centre has given `500 crore to the State government on March 31, 2015, and the amount was not spent till March 19, 2016. “When you have money, what is the need of running for loans. I am asking for a white paper on the financial position of AP, but the government is not coming forward. If Kutumba Rao is ready to give me answers, I have no inhibitions in going to his office,” he concluded. 

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