VIJAYAWADA: Even as the Opposition leaders and independent politicians continue to express doubts over Amaravati Bonds, AP Planning Board Vice-Chairman C Kutumba Rao has maintained that no irregularities took place in the issuance of bonds. He further said that those who have been alleging a scam could complain to the Securities and Exchange Board of India (SEBI), and offered to resign within 24 hours if the detractors proved their allegations.
Addressing a press conference at Chief Minister’s Camp Office here on Friday, Kutumba Rao said, “The issuance of bonds was done after getting all the requisite clearances from SEBI. Some politically-motivated people are spreading false information alleging quid pro quo. There is no truth in it and the bonds were issued in a transparent manner.”
He said that he had previously clarified that nine investors bought over 95 per cent of the `2,000-crore bonds. Some of the major investors include Franklin Templeton, Birla Sun Life, Prudential Life, AK Capital and others, he added. Making an open offer to Opposition leader YS Jaganmohan Reddy, Kutumba Rao said, “The Opposition members have been questioning us over the interest rates and arranger’s fee. They are also saying that we could have borrowed loan from HUDCO for eight per cent instead of bonds. If they can get bonds for even 0.5 per cent lower than the interest rate we fixed, we are open to have the Opposition leaders themselves as the arrangers.
I also challenge them to get loan from HUDCO for eight per cent,” he said. Kutumba Rao also rebutted former MP Undavalli Arun Kumar’s remarks against the bonds. “Undavalli raised a question as to why the government had gone for higher interest rate despite issuing a government order in February this year, which suggested six per cent as the maximum rate of interest for fund mobilisation. However, he is unaware of another G.O. issued in August regarding the revised interest rate,” he said.