HYDERABAD: BRS working president KT Rama Rao alleged that Chief Minister A Revanth Reddy was misusing thousands of crores of public money and diverting it to his benami company.
Speaking to reporters here on Wednesday, Rama Rao alleged that the company KLSR functions as a front entity for Revanth and presented “documentary evidence” in support of his claim.
He alleged that despite its insolvency, KLSR secured government projects worth nearly `6,000 crore under the present administration, including works related to AMRUT scheme, Jal Jeevan Mission, Young India Residential Schools, Telangana irrigation and road development projects.
He asked why the chief minister concealed the Supreme Court notices calling for investigation into the `6,000-crore contracts and financial irregularities involving KLSR.
The BRS leader demanded that the chief minister explain how such a financially distressed company was awarded contracts of this magnitude, particularly in the Municipal Administration department and also in Revanth’s own constituency.
He asked how an insolvent firm from 2023 onwards could be granted government contracts between 2024 and 2026, and pointed out that the Supreme Court had raised concerns over the company’s ability to furnish massive bank guarantees despite allegedly lacking even `15 lakh to pay employee salaries.
He also alleged that KLSR had been operating as a “benami” company for Revanth from the very beginning and that the links between the chief minister and the firm were well-known.
The Supreme Court recently issued notices to the state government seeking clarification on large-scale financial transactions continuing in the company despite its insolvency proceedings, as well as allegations relating to attempts to influence judicial processes, he said.
‘Political drama from Davos’
Rama Rao said that fearing that his “benami” operations would be exposed, Revanth enacted a political drama from Davos under the guise of forming a Special Investigation Team (SIT) in order to divert public attention. He demanded that an immediate investigation be launched into the company and that all operations of the insolvent firm be halted until the probe is completed.
He also demanded that the company be blacklisted and for all contracts allegedly secured without eligibility to be cancelled.
The BRS leader recalled that enforcement agencies had carried out raids on KLSR in 2018, when Revanth was the TPCC president. Despite the firm subsequently entering insolvency proceedings at the National Company Law Tribunal (NCLT), Revanth, after becoming the chief minister, facilitated the award of major government contracts to the company.
Rama Rao alleged that Income Tax raids were conducted on relatives of Revanth on September 27, 2018, during which transactions between Sai Mourya Estates and KLSR were unearthed. Funds from Bhopal Infra and Sai Mourya were traced to accounts linked to relatives of the Chief Minister, he alleged.
Rama Rao further said that in July 2023, disputes between KLSR and another company led both parties to approach the National Company Law Tribunal. Subsequently, KLSR filed a corporate insolvency resolution petition, after which financial transactions were restricted.
He alleged that attempts were later made to exert pressure on an NCLT judge through a senior judicial intermediary, prompting the judge to recuse himself from the case after disclosing the matter.
Revanth was the key figure working behind the scenes to secure favourable rulings for the company, Rama Rao said and alleged that the company was linked to the chief minister’s brother-in-law. He alleged that funds were routed through KLSR to acquire large tracts of land and claimed that enforcement agencies had previously recovered evidence during their investigations.
Rama Rao demanded a probe by the CBI into the affairs of the company as directed by the Supreme Court.
If the BJP was not shielding Revanth, then Union minister G Kishan Reddy should ask the Centre for an impartial probe into the affairs of KLSR, he added.