HYDERABAD: Claiming a major financial irregularity behind the proposal to auction off 400 acres of land in Kancha Gachibowli near the University of Hyderabad, BRS working president KT Rama Rao on Friday said that the state government, a BJP leader and a private bank were involved in the deal.
Addressing a press conference in Hyderabad on Friday, Rama Rao alleged a financial fraud amounting to Rs 10,000 crore in the land deal, besides the environmental damage.
The government had launched the sale of 400 acres of land despite the fact that it being forest land.
He further noted that with the help of a BJP MP from the state, a brokerage agency was roped in by the state government to mortgage the land to a private bank and raise Rs 10,000 crore in the form of bonds.
Rama Rao, however declined to identify the BJP leader.
Though the 400 acres of Kancha Gachibowli land was not officially transferred to the Telangana State Industrial Infrastructure Corporation, the corporation pledged the land and took a loan of Rs 10,000 crore from the private bank.
According to him, the brokerage agency assured it could arrange funds bypassing the Fiscal Responsibility and Budget Management (FRBM) Act.
The brokerage agency demanded a commission for bypassing the FRBM Act and according to Rama Rao, the state government paid a bribe of Rs 169 crore to the agency.
Rama Rao demanded Prime Minister Narendra Modi to respond immediately and order a probe into the entire deal.
Rama Rao said that a BRS delegation would soon meet the Prime Minister and lodge a formal complaint.
He warned that the private bank, which provided funds to the government, could collapse soon, as it had lost credibility by providing Rs 10,000 crore to the State government by mortgaging the lands.
The BRS working president further accused the bank of failing to verify the ownership of the land. He asserted that the 400-acre land belonged to the UoH and claimed the bank sanctioned the loan because a BJP MP was backing the deal.
It may be recalled that the State government informed the Central Empowered Committee, constituted by the Supreme Court, on Thursday that it had duly followed Forest and Revenue rules. The government told the CEC that the lands belonged to the State. Meanwhile, BJP state leaders challenged the BRS working president to name the BJP MP.
