TIRUPATI: An inquiry by the Vigilance Department in Tirupati has confirmed the misappropriation of Rs 300 crore Tirupati Urban Development Authority (TUDA) funds during the previous YSRCP regime.
In response to the complaint of Chandragiri MLA Pulivarthi Venkata Mani Prasad (Nani) and orders of the Chief Minister’s Office (CMO), the Vigilance and Enforcement Department officials initiated the inquiry and submitted a report to the Director General of Police (Vigilance and Enforcement). It will be forwarded to the CMO for appropriate departmental action.
Reliable sources in the Vigilance Department have confirmed that most of the allegations were found to be true, with subject-wise remarks clearly outlined in the report.
According to the report accessed by the TNIE, key findings of the vigilance Investigation shed light on the illegal fund transfers to MPDOs, favouritism in allotments of contracts, violation of environmental norms, construction of a road in a private layout, misuse of vehicles and maintenance funds, benami transactions for benches, TUDA funded personal surveys, and irregular appointments of contractual staff.
It is learnt that nearly Rs 200 crores of TUDA funds were illegally transferred to the accounts of six Mandal Parishad Development Officers (MPDOs) in the Chandragiri constituency between 2019 and 2024, violating established State government financial guidelines.
Major TUDA works were awarded to a single firm, which subsequently sub-contracted to various private contractors, raising serious questions about transparency and competitive bidding.
A major allegation involving the destruction of Thummalagunta Tank was found to be valid. Several projects were executed in violation of National Green Tribunal (NGT) guidelines, leading to large-scale fund misuse.
A road was constructed using TUDA funds within a 100-acre private layout in Thottambedu mandal, benefiting private individuals. Six vehicles, purchased using TUDA funds, were allotted to personal assistants, with maintenance expenses also borne by the authority.
Around 10,000 benches were procured for six mandals at nearly four times their market cost, allegedly through a benami firm based in Hyderabad.
Furthermore, it is also found that the TUDA funds were misappropriated for personal surveys, including direct payments to a private printer in Tirupati, with purchases including pens and writing pads worth Rs 25.8 lakh.
Since 2019, 22 contract employees were irregularly appointed in TUDA and allegedly used for non-official, personal work.
The investigation found that TUDA’s monthly income was entirely spent without proper planning or prioritisation, resulting in the authority being burdened with overheads and financial distress.
Speaking to TNIE, a senior vigilance officer confirmed, “Our investigation is complete, and a detailed report with subject-wise findings has been sent to the State Vigilance Head for submission to the CMO through proper channels. The State government will take appropriate action based on our findings.”