Avinithi Chakravarty Eng

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Index

1. Chandrababu Naidu - Emperor of Corruption 7


2. Dangerous Levels of Corruption in AP! 9
3. Recent Scams of Chandrababu 13
4. Important Words and Abbreviations 16
5. Indiscriminate Loot in Water Resources Department 18
6. Polavaram Project Drained 22
7. Red Carpet for C.M. Ramesh 25
8. Opposition of Two Chief Secretaries Could Not Stop 27
9. Needless River Linking, Indiscriminate Loot 28
10. Coterie Contractors Profited 30
11. Siphoned Off in Soil Embankment Works 31
12. EPC Out, Additional Funds In!! 33
13. Megha Bags Purushottapatnam, Kondaveeti Rivulet Tenders 34
14. Pattiseema Project- Exclusively for Kickbacks 35
15. Chintalapudi Extension Works Fell Prey to CM 36
16. Uravakonda CLDI Inflated 37
17. Totapalli Project Costs Shot Up 38
18. Four-fold Plunder in Mid Pennar 39
19. C.M. Ramesh Gets Bonanza 40
20. Scam Involving Chief Minister in Telugu Ganga 41
21. Kickbacks to Minister and Contractors in Handri-Neeva 43
22. Pogonda Scam 44
23. Minister's Relative - First Among Contractors 45
24. Polavaram Project Undermined 46
25. Polavaram Free Lunch! 47
26. Endless Corruption in Polavaram 48
27. Massive Land Scam in Vizag 50
28. Yellow Mafia Swallows the State 55
29. 24,614 Acres of Inam Lands Grabbed! 66
30. Capital Land to Corporate Companies 67
31. IT Minister Grabs Daspalla Hills 69
32. Govt. Gifted Land to Encroacher 70
33. Sadavarti Choultry Lands Alienated..! 72

Emperor of Corruption 3
34. Lulu Gets 12.52 Acre in Vizag 76
35. Minister Grabs Vizag Suburban Lands 77
36. High-Value Lands to Franklin Templeton 78
37. Rs. 100 Crore Worth RTC Land 79
38. A Friend in Deed 81
39. Lands to NTR Trust in All Districts 82
40. 508 Acres into MLA's Pocket 83
41. Gitam Land Grab in Vizag 85
42. 6.19 Acres Gifted to Lingamaneni 87
43. 'Bonda-giri' in Bezwada 88
44. Gift to Galla Family 90
45. Mortgaged Lands of Banks Gifted to Lingamaneni 91
46. Mukteshwara Temple Land Grabbed 92
47. Valuable Land for TDP Office 93
48. Gift to TDP Leader 93
49. Government Targets Assigned Lands 94
50. No More Lease! Selling the Lands Outright! 96
51. Assigned Lands Alienated 97
52. Great Land Mutation Scam 100
53. Unprecedented 'River-Grabbing' by CM! 102
54. Land Acquisition by Babu's Regime 103
55. Amaravati World Class City or World Class Scam? 105
56. 'Capital' Benefit! 106
57. The Devil in Detail 109
58. Swiss Challenge Scam 111
59. Heritage Gets 14 Acre Land in Capital 114
60. World Bank Pulls Up Chandrababu Govt 116
61. Capital Culprits 118
62. A World Class Scam 121
63. The Captured Capital 124
64. Nara Lokesh and His Benami Inc. 125
65. Sujana Chowdary's Land Robbing 127
66. Murali Mohan - The Real Benami 128
67. Ravela… Traitor of Dalits 129
68. Rs. 295 Crore Dowry to CM's Relative 130
69. Assigned Lands in Prathipati's Account 131

4 Emperor of Corruption
71. Quid pro quo with Lingamaneni 132
72. One Bit, One Benami 134
73. Narayana..Narayana 135
74. Payyavula Descends 137
75. Rama... Rama… Krishna… Krishna 138
76. Dhulipalla's Poramboke Lands 139
77. Kodela's Son, the Rising Star of the Land! 140
78. Kommalapati Sridhar… Totally Illegal! 141
79. Open Fraud and Deception… 143
80. Lingamaneni Ramesh - King of Encroachments 145
81. A Ravan in Every Lanka 148
82. Narendra Kumar Did not Stop 153
83. Share of Anjaneyulu is 4.69 Acres! 153
84. Red Zone in the Name of Green Zone 154
84. AgriGold Scam 159
85. Neeru Chettu Plunders 163
86. Siphoned Off in Power Purchases 168
87. Nomination Domination 169
88. Gone with the Wind Power! 171
89. 'Temporary' Robbery 173
90. Scam in Tenders for Permanent Buildings 174
91. Loot in Temporary Secretariat 175
92. Kickbacks from Liquor Syndicates 177
93. Central Funds to TDP Leaders 178
94. Massive Scam in Energy Department 179
95. Chandrababu Spends Crores on Foreign Jaunts 181
96. Cost of Babu Propaganda 184
97. Chandrababu's Splurge in Four Years 185
98. Babu's Hand in AirAsia Scandal? 187
99. Short Tenders for Five Towers 189
100. Amaravati Bonds - Total Loss To State 190
101. Corruption Ails Health Department 192
102. MedTech Park Becomes Hotbed of Corruption 193
103. Benami Bags Fibregrid Project 194
104. Naidu's Plans to Shutdown Electronic Media! 195
105. Ruling Party MP's Rate Prevails 196

Emperor of Corruption 5
106. Chief Minister Loots in Fibre Grid Contracts 197
107. The 'Powered' Heritage 199
108. Feeding on the Poor 204
109. PDS Handed Over to Future & Reliance Groups 205
110. Rs. 735 Crore... Gone With Krishna 206
111. Pushkaram Funds Gone Godavari Way! 207
112. Corruption Lines in APTransco 208
113. Thermal Projects of Favoritism 209
114. Changing of High-Tension Electric Lines 210
115. SDF Funds GO Straight to TDP Leaders! 211
116. The CCTVs Scam 213
117. Solar Golmaal!! 214
118. Land Levelling Scam 215
119. Nomination, it Works! 216
120. Pocketed in the Name of Jnanabheri Conferences 217
121. Gross Mismanagement of Medical Devices 218
122. Theft in the Name of Rain Guns 219
123. Lokesh Swindles in the Name of Village Roads 221
124. In the Name of Tourism Star Hotels Get All the Incentives 222
125. Janmabhoomi Committees - One Party Rule! 223
126. No Kickback, No Tender 224
127. Sand Mafia Plunders AP 227
128. Minister's Sketch for Granite Mines 231
129. Illegal Mining in Minister's Area 233
130. One-time Settlement for Illegal Mining 234
131. Limestone Looted 235
132. Mining Barytes Commissions 236
133. Imported Coal Lasts Long! 237
134. 'Sarkari Thieves' in Chennampalli Fort 238
135. AP is No.1 in Corruption 239
136. 'Yellow' Tax in AP 240
137. From 2 Acres to Super Riches! 241
138. Scams Between 1995-2004 Chandrababu Previous Regime 244
139. Democracy in Danger! 249
140. Chandrababu Naidu - A Treacherous and Corrupt Man 254
141. CAG Indicts AP's Corrupt Government 256
142. Severe Debt Burden and Colossal Mismanagement 262
143. Appalling Governance in AP! 266

6 Emperor of Corruption
Chandrababu Naidu
Emperor of Corruption
The Corrupt, Ineffective, Untruthful and Undemocratic Rule
Chandrababu Naidu's four and half years rule in district. As people flocked to buy lands in these two
Andhra Pradesh is marked by corruption, incompetence, areas, the real estate value of Amravati region fell
untruthfulness and undemocratic attitude. Thanks to sharply. Making the most out of this condition,
Naidu's active support, corruption and extortion have Chandrababu Naidu, his benamis and cronies have
peaked and reached to colossal levels; so much so that moved in for the kill, duped gullible farmers and bought
even sand reaches and temple lands are not being as much land as possible in and around the prospective
spared. The only area in which Chandrababu Naidu has capital region.
managed to achieve rapid growth is: high volume Amaravati was announced as the new capital on
corruption. His rule is replete with bribes, commissions, December 28, 2014, only after the concluding the
cuts, kickbacks and all imaginable forms of wheeling deceitful land purchases by the cronies and benamis of
and dealing. Indeed, Mr. Naidu has amassed more illicit the CM; subjecting the farmers of the region to untold
wealth in this four and half years than his all previous loss. And as per the scheme, the benamis have
ministerial stints put together. benefitted immensely in this process.
This rampant corruption was flagged by several Chandrababu Naidu has then started a process
organisations including the National Council for Applied called land pooling- which was supposed be voluntary,
Economic Research (NCEAR), a prestigious think-tank but anything but voluntary, and taken thousands of
based out of New Delhi, Centre for Media Studies (CMS), acres of land from unsuspecting farmers. He then
another prestigious think-tank from the national capital started gifting huge tracts of this land to his favorite
and the Comptroller and Auditor General of India (CAG). companies- which were mostly from Singapore where
The NCAER's State Investment Potential Index-2016 the Chief Minister has considerable business interests- at
declared AP number one corrupt state in the country. lower rates to bag massive kickbacks. Under Babu's
The CMS corruption study of 2017 ranked the state as watch, the land records of more than one lakh acres
the number two corrupt state. The CAG annual reports have gone missing in Vizag district. In the capital region,
have been flaying Chandrababu Naidu's misrule, thousands of crores of rupees are being wasted on
highlighting several instances of blatant corruption and temporary buildings, which are being built with
lethargic governance delivery. The waterman of India, questionable quality by the CM's handpicked
Rajendra Singh, in his recent visit to the state in October contractors. Sand mafia gangs are ruling the roost across
2018, described Amaravati scam a bigger scam than the state.
Rafael scam. Irrigation projects are overflowing with corruption.
During the 2014 election campaign, Chandrababu Flouting rules with impunity, Chandrababu is assigning
Naidu promised AP people to build a capital city of contracts to his chosen companies on the 'nomination'
global standards for the newly carved state. However, in basis. Contractors have been handed tailor-made GOs to
practice, he has thrusted upon them a real estate scam facilitate corruption! Scoffing at EPC (Engineering,
of global scale. With the intention to benefit his Procurement, Construction) regulations, the Chief
ministers, lawmakers and cronies, he has breached his Minister has been generously dishing out cheques to his
oath of secrecy and leaked the location of the handpicked contractors, even when not needed, from
prospective capital. To depress the real estate value in the state coffers. The AP Reorganization Act has made it
Amaravati region, he has set the rumour mills in motion clear that the construction of the Polavaram project was
through his friendly media outlets saying the new the responsibility of the central government. However,
capital would come up either at Nuzvid of Krishna Chandrababu, having sensed a money-spinning
district or at Acharya Nagarjuna University of Guntur opportunity, took the project into his hands and then

Emperor of Corruption 7
immediately jacked up the estimated cost of the project promises... the waiver of farm loans, the loan waivers to
from the previous Rs. 16,000 crore to Rs. 50,000 crore. DWCRA groups, a job for every household and monthly
Babu's handpicked contractors have been awarded unemployment allowance of Rs. 2,000, among others.
contracts against kickbacks, while proxies front the Chandrababu has been making false claims of having
project as sub-contractors. brought the investment of Rs. 15 lakh crore to AP, while
In Chandrababu's rule, corruption is flowing openly the RBI in a report stated that more than 26,000
from distilleries to wine shops, while venal deals on a industries have been shut down during his three-year
scale unheard of are blackening AP's reputation in the tenure. The report also states that the costs of power
purchase of coal. Even the temple lands have not been supply have gone up and that industrialists are feeling
spared. Sadavarti lands in Tamil Nadu and the lands of intimidated by the widespread corruption in the state.
the famous Kanakadurga temple in Vijayawada are Babu government has weakened the elected local
being sold for a song, clearly after striking payoff deals. governments by transferring the total administration
During the tenure of the late Dr. Y.S. Rajashekhara powers with the ruling party-controlled Janmabhoomi
Reddy, 80% work of the irrigation projects got Committees. These committees have the final say on all
completed. Chandrababu has proved to be so inefficient the important matters of village administration and
that the rest of the 20% of work is still unfinished, even welfare schemes. Chandrababu has plumbed to new
after four and half years of time and Rs. 30,000 crore depths of immorality by giving development funds to
expenditure. Arogyasri programme which has once TDP constituency coordinators in the constituencies
made the quality health care accessible to the poor and represented by YSRCP MLAs! How much more
the middle-class now languishes in a comatose state. undemocratic and partisan a government can become?
The famed 108 ambulance service-which has once Instead of allotting more lands to Tribal people and
saved thousands of lives with its uninterrupted, free of Dalits, the government took back the lands assigned to
cost services- has fallen into a state of disuse. Doctors them by the previous governments! Grave injustice is
are complaining about the long-pending dues to the being done to Tribal people as the government is
hospitals. A call to 104 would bring medicines to the denying setting up of an Advisory Council for the
doorstep of the elderly during Dr. YSR's time, but today, Scheduled Tribes. The reason behind this reluctance is
in contrast, drivers of 104 and 108 services are not even six out of seven ST MLAs are from YSRCP and the CM
paid their salaries. Chandrababu's government has doesn't want to acknowledge them by placing them on
failed in implementing the much-celebrated fee an official body.
reimbursement scheme, which was a brainchild of Dr. Chandrababu has used his ill-gotten monies to
YSR, through which hundreds of thousands of students dismantle political opposition. He has enticed YSRCP
have benefited. lawmakers by offering them Rs. 20 crore to Rs. 30 crore
Even as the waters of Krishna and Godavari rivers are cash, ministerial berths and other positions. Driven by
being diverted by Telangana, Chandrababu played a greed, he so far admitted 21 MLAs, one MLC of the
mute spectator fearing repercussions of the note-for- YSRCP and made four of them the cabinet ministers. He
vote case. He was totally silent on the Centre's promise also has tried to destabilise Telangana government by
of Special Status to AP for four long years and making buying the votes of three MLAs from the ruling TRS to
noise only after coming out from BJP-lead alliance at the get his party candidate elected to Telangana Legislative
centre. Council. During this process, he was caught red-handed
Chandrababu betrayed farmers by defaulting on his on the audio-video tapes. A Chief Minister indulging in a
much-touted loan waiver scheme. As the government brazen attempt to 'buy' legislators and getting exposed
has failed to pay up even one-third of the interest to in the bargain through audio-video tapes, still clinging
banks, the farmers have become 'defaulters' for no fault on to power and escaping the jail term is truly
of theirs and are being denied the fresh loans. Farmers' unprecedented.
loans are not being rescheduled and they are finding
themselves being sucked deeper into the quicksand of For sure, this tenure of him will go down in the
debt. Despite farmers are being subjected to such annals of history as the most corrupt, incompetent,
untold suffering, Chandrababu Naidu has not discussed untruthful and undemocratic rule the AP has ever
their plight in any of his cabinet meetings so far. He has seen. The intellectuals, democrats and youth should
betrayed the people of AP on almost all of his poll come forward and get rid of this obnoxious rule!

8 Emperor of Corruption
Dangerous Levels of Corruption in AP!
Former Chief Secretary Ajeya Kallam
on Chandrababu Naidu's rule
● In Andhra Pradesh, the corruption of
Chandrababu and Co. knew no limits. In
the last four and half years, they have
amassed about Rs. 3 lakh crore.
● They have made commissions of Rs.
20,000 crore in irrigation projects alone!
● They have taken control of all the
natural resources. Anybody who
objected this rapacious conduct were
totally silenced.
● In the name of developing a global city,
Chandrababu Naidu has been
running a massive real estate business. government into an opportunity for the bribe.
● In the name of investments, Ajeya Kallam tried to persuade the CM not to
the CM has filled his own coffers. loot the state by writing his objections on the files
of the proposals. However, earnest words of this
● To satisfy his desire for propaganda,
sincere public servant did not move Chandrababu
he has spent hundreds of crores
of rupees. Naidu. Of course, the officials can only give
prudent advice to the heads of the governments
● Chandrababu has destroyed all the but cannot go beyond a point. However, they are
institutions and institutionalised
free to speak their minds once they are out of
corruption.
service. That's why Ajeya Kallam has refused to
consider post-retirement positions offered to him
These are not the allegations of any political by the CM and started creating awareness about
opponent of Chandrababu Naidu, nor were they the rampant corruption of Chandrababu Naidu.
made for any political traction. These were the As part of this, Ajeya Kallam has been touring
statements of a former Chief Secretary Ajeya the state, addressing the public meetings and
Kallam, who has extensive administrative explaining the kind of legal plunder that is going
experience and known for his integrity. Being an in the state. He has penned a book titled "Melu
insider of AP government, he has seen unfettered Kolupu", which translates into 'the awakening call'.
corruption of Chandrababu Naidu. He has seen the This honest civil servant calls on the youth and
way the selection process of capital city location intellectuals of the state to question the ongoing
twisted to suit the real estate interests of the Chief exploitation in the state. Here are some of the
Minister. And he has seen the way Chandrababu excerpts from his speeches and interviews.
has turned every financial transaction of the

Emperor of Corruption 9
I am not talking about the present rulers'
obnoxious corruption only now. I did my best to Assembly Became MLAs' Auction Hall
prevent the corruption of present rulers even when I Assembly has become an auction hall for
was in service. I have written (notes) in the files flaying purchases of MLAs. 23 opposition MLAs have
the embezzlement proposals. They are not satisfied defected to the ruling party. You have don't have
with their loot and are trying to rob the state further to have any proofs in incidents of this sort.
by fielding their heirs in the coming elections. If Speaker can disqualify them. But, the (AP) speaker
people, especially the youth, don't question them, is undermining the assembly system by
nobody can save the state. That's why, unable to put protecting the defectors. Four of these defectors
up with these horrendous episodes, as a thinking today have cabinet positions.
citizen who is concerned about the societal welfare, I
am trying my level best to awaken the youth. I have need to bring him to Amaravati and handover 49-acre
penned "Melu Kolupu" with that specific objective. It land worth Rs. 700 crore and provide Rs. 2,233 crore
is time for the intellectuals and youth to play a key worth incentives for the span of 12 years?
role in safeguarding the systems before the society is
fully corrupted by these selfish people. Is this the Quality of a Building
Built at Rs. 11,000 Per Sq. Foot?
How Atrocious is This?
The temporary secretariat building which was
In the state, the corruption has spread its tentacles
constructed at a whopping Rs. 11,000 per sq. foot- is
and taken hold of all the systems. We have fallen to
leaking even for light rains. This is the proof that the
the lowest level; nothing gets done without a bribe in
quality of the building is nothing but a sham and the
Andhra Pradesh. More than 40 percent of funds
funds were feasted on.
allocated to irrigation projects are being
The government has paid Rs. 700 crore to a media
appropriated. Out of the allocated Rs. 50,000 crore
organisation in the last four years. The funds that are
funds for irrigation projects, Rs. 20,000 crore has been
supposed to be spent on the peoples' welfare are
swallowed.
being spent on phony activities such as Dharma
There are plenty of examples to assert that the
Porata Deeksha, Nava Nirmana Deeksha, Pushkarams,
present rulers are robbing off everything except the
foreign trips in special flights and construction of
air. For instance, Rs. 1 crore was released for
camp offices.
development of a tank in a village in West Godavari
CM Chandrababu Naidu has spent his ill-gotten
district, a TDP leader who undertook the contract had
monies on the assembly elections in Gujarat,
dug up the topsoil and sold it for Rs. 60 lakh.
Karnataka and Telangana. Everybody should question
The state government has been misusing
these unethical activities.
thousands of crores of rupees of public funds. One-
third of Rs. 20,000 crore of employment guarantee Why Didn't I Question while in Service?
scheme funds has been appropriated. The Some of you may wonder why I didn't raise these
government bigwigs have bought 5 lakh cell phones questions while I was in service. Indeed, I did raise. I
at the price of Rs. 7,500 per piece, while that phone is have firmly questioned all the proposals of plunder
available for Rs. 4,000 in the market. They thus have that have come to my table. I have faulted the
pocketed Rs. 150 crore. In the guise of IT proposal to involve private companies' consortium of
development, land worth Rs. 400 crore has been Singapore in the development of the capital city. I
gifted to Franklin Templeton for mere Rs. 13 crore. have written six paragraphs-long objections (to the
In Andhra Pradesh, crores of rupees of public proposal) in the file. Not only this, I have questioned
funds are being misused in the name of so-called every questionable proposal that came to my table. I
'struggles'. Struggle against the central government, have written down my questions, suggestions and
struggle to develop the state...etc. Have we ever seen observations in the files unhesitatingly. However,
governments organising protest events with public bureaucrats can only make suggestions to the
money in the last 50 years? When Siva Nadar of HCL government. They cannot do anything beyond a
wanted to start a company in Tirupati, what was the point. In the end, it's the rulers who call the shots. In

10 Emperor of Corruption
our state, all these problems are arising because the only the 600 people who made Rs. 500 crore each,
agenda of rulers is clashing with the agenda of they alone had made Rs. 3 lakh crore.
people. Neither Fiber Nor Grid
Real Estate Business When the center wanted to undertake the fiber
in the Name of Capital City grid project, state had requested the centre that it
It's truly appalling that the government has been would take up instead. However, Rs. 400 crore fiber
running a real estate business in the name of grid project can be seen nowhere today. Neither
developing a world-class capital city. The there is fiber nor grid. The government is selling the
centralisation of power is a flawed approach. The very set top boxes at Rs. 4,000 per piece while they are
idea of the large metropolis is irrational. This doesn't available for Rs. 2,000 in the market.
help people in any manner and only encourages the Public Funds are Being Splurged
real estate business. It is unethical to keep people
In Andhra Pradesh, the corruption knows no limit.
under the impression that only large cities attract
When the people question this corruption, the ruling
large corporations and making fortunes from the
party leaders reply that their party workers should
ensuing real estate business.
also eat. But, how come anybody who doesn't serve
Rs. 20,000 Crore Irrigation the people and only plunders them can be termed a
Funds Swallowed party worker? The Chief Minister is spending tonnes
The Chief Minister is taking 6 % commission from of money in the name of the protocol; almost 10
the irrigation projects. The Chief Minister, ministers, times more money than the protocol expenses in the
ruling party leaders and contractors together are united Andhra Pradesh.
appropriating about 40 percent of the allocated On one hand, they say the state is suffering due to
funds. According to the state government, Rs. 50,000 the paucity of funds and on the other, they have been
crore was spent on irrigation projects, and Rs. 20,000 splurging money phony events such as Dharma
crore of it has fallen prey to the institutional Porata Deeksha, Nava Nirmana Deeksha, Pushkarams,
corruption. foreign trips in special flights and construction of
camp offices.
Commissions Without Works From that ill-gotten money, the ruling party spent
In Andhra Pradesh, all the contracts are being Rs. 200 crore on Nandhyal by-election. This by-
awarded to a few companies, which include Megha election was recognised as the costliest by-election in
Engineering, Navayuga, Rithwik Projects, Transstroy the country's history.
and Progressive Constructions Pvt. Ltd. which belong While I was studying agriculture during 1970 in
to TDP leaders such as Rayapati Sambasiva Rao, C.M. Bapatla, I have heard about rain guns under the
Ramesh and Kavuri Sambasiva Rao. These companies micro-irrigation methods. We have shown them to
do nothing. They just sub-contract the contracts our farmers in 1994 during the Israel trip. Now, the
against 8 percent commission. rulers are propagating as if they have invented the
In Neeru-Chettu Programme, not only the works rain guns and making kickbacks in their purchases.
below Rs. 10 lakh were distributed among the TDP Now, nobody knows where those rain guns are.
leaders on nomination basis, they also have clubbed Destruction of Governance Systems
two works and gave Rs. 20 lakh worth works on
nomination basis. Massive corruption is taking place It is the duty of the people to question the rulers
in Neeru-Chettu works. who are destroying the systems. I have seen the
green revolution during my childhood. Back then,
Pretending Civil Works systems have helped the bureaucrats to act
TDP leaders have been claiming bills for digging autonomously. The present-day developments mirror
farm ponds, which they never had. Across the state, the decaying values.
600 people have made Rs. 500 crore each, 50 people While 12 Chief Ministers attended the swearing-in
made Rs. 100 crore each and another 50 people made ceremony of Karnataka CM Kumara Swami, how
more than Rs. 50 crore, in this fashion. If we consider come public money of Rs. 8.75 lakh was spent on AP

Emperor of Corruption 11
CM's single day stay in Bangalore? AP CM was costliest
among the 12 CMs. Though the monarchies have died MLA Tax
out long ago, they are still continuing in the guise of The state has become the fiefdom of MLAs.
modern democracy. Nothing can happen without their knowledge. They
The state government which is not able to give are deciding the employees' postings and transfers
subsidies, loans and the minimum support price to against bribes. MLA tax is there in many
farmers is happily giving the high-value lands and constituencies of the state. Even if you want to set up
thousands of crores of rupees incentives to five-star a medical store, you need to pay tax the local MLA.
hotels and airline companies. The excessive power of Janmabhoomi Committees
The government has issued an order on 27-11- has devastated the panchayat raj system. In the name
2018 to provide Rs. 18 crore subsidy to IndiGo airlines of free sand, new plunder was instigated. They say
and Rs. 3 crore were already released. Why are they sand is free but are selling it at a very high price. Since
running flights by giving incentives to airline our neighboring state Telangana has fewer rivers,
companies? Is it because the ruling party ministers, they don't have as much sand as we have. When that
MLA and leaders go to Singapore? Or else is it for the state gets Rs. 3,000 crore revenue on the sales of
Singapore consortium which was given 1,600 acres in sand, our state should get not less than Rs. 10,000
the capital city? crore revenue. However, we have zero revenue. The
elected representatives and contractors are gulping
Is This Pro-people Governance? it down. In short, institutional plunder is going on in
There is a heavy corruption in implementation of the state.
weaker sections housing scheme in the state. While - Ajeya Kallam at a conference on decaying
the KCR government is paying Rs. 800 per sq. foot, AP political values at Pendurti, Visakhapatnam
government is paying anyway between Rs. 1,900 and district on 16 August 2018.
Rs. 2,700. Chandrababu has taken corruption to its
peaks in destroyed the governance systems. In the rule of Chandrababu Naidu, the interests of
The government must have the approval of private players and his party leaders have taken
precedence over the interests of people. The present-
assembly for every paise that it spends. But, how
day self-serving politics are causing a disgusting
could they spend Rs. 27,000 crore without obtaining
sensation. What do I get? What does my party get?
any permission, after having a discussion in the House
This is their sole motto.
and further conducting voting? The CAG has faulted
- Ajeya Kallam at the inaugural function of
this malpractice. How could they borrow Rs. 60,000
"NavyandrathoNaaNadaka", which was penned by
crore loan in the name of non-budget in a state which another former Chief Secretary I.Y.R. Krishna Rao
has revenue deficit? When the state is in deficit, why at Vijayawada on 25 November 2018.
don't you control expenditure? Why do you need ------------------------------------------------
temporary buildings at the cost of Rs. 60,000 crore? If One day of the Chief Minister's tour costs Rs. 25
these buildings were built at Rs. 100 crore, the public lakh. If CM tours the cyclone-affected areas like this,
funds wouldn't have been looted. the police and government machinery revolve
around him and wouldn't truly help the victims.
It's not correct on the part of the CM to tour
cyclone-affected areas like this for political gains.
During the 1997 Konaseema cyclone, the then CM
Jalagam Vengala Rao alerted the officials, had talks
with the centre and secured required funds.
In 1990, when Andhra Pradesh was affected by a
cyclone, erstwhile Chief Minister Marri Chenna Reddy
was in abroad. He had successfully coordinated the
state machinery and ensured the timely aid.
- Ajeya Kallam at a media interaction in

12 Emperor of Corruption
Recent Scams of Chandrababu
(In Rs. in Crores)
Sum of Irrigation Scams: 1,01,422.42
Indiscriminate Loot in Water Resources Department 56,750
Polavaram Project Drained 25,000
Red Carpet for C.M. Ramesh 4,834
Opposition of Two Chief Secretaries Could Not Stop
Corruption in Irrigation Department 3,000
Needless River Linking, Indiscriminate Loot 3,000
Coterie Contractors Profited 2,000
Siphoned Off in Soil Embankment Works 1,590.47
EPC Out, Additional Funds In!! 1,500
Megha Bags Purushottapatnam, Kondaveeti Rivulet Tenders 930.5
Pattiseema Project- Exclusively for Kickbacks 710
Chintalapudi Extension Works Fell Prey to CM 573
Uravakonda CLDI Inflated 400
Totapalli Project Costs Shot Up 352.68
Four-fold Plunder in Mid Pennar 320
C.M. Ramesh Gets Bonanza 200
Scam Involving CM in Telugu Ganga 100
Kickbacks to Minister in Handri-Neeva 78.82
Pogonda Scam 43.97
Minister's Relative First Among Contractors 38.98
Sum of Land Scams: 1,74,757.17
Massive Land Scam in Vizag Exceeding 1,00,000
Yellow Mafia Swallows the State 58,933
Inam Lands Grabbed 5,907
Capital Land to Corporate Companies 3,245
IT Minister Grab Daspalla Hills 1,500
Gitam Land Grab in Vizag 1,000
Sadavarti Choultry Lands Alienated..! 978
12.52 Acre in Vizag Given Away to Lulu 905

Emperor of Corruption 13
Minister Grabs Vizag Suburban Lands 604
High-Value Lands to Franklin Templeton 400
RTC Land in Guntur Given Away Under Swiss Challenge 350
A Friend in Deed 338
Lands to NTR Trust in All Districts 133.5
508 Acres into Repalle MLA's Pocket 101.72
Gitam Land Grab in Vizag 100
6.19 Acres Gifted to Lingamaneni 69
'Bonda-giri' in Bezwada 50
Gift to Galla Family 40
Siphoned Off Mortgaged Lands of Banks Gifted to Lingamaneni 39.15
Mukteshwara Temple Grabbed 25
93 Cents for Vijayawada Party Office 25
Gift to TDP Leader 13.80
Value of Amaravati Real Estate: 1,66,000
'Capital' Benefit! 1,00,000
Swiss Challenge Scam in Capital 66,000
Major Scams: 1,60,903.6
AgriGold Scam 35,000
Neeru Chettu Plunders 34,399
Siphoned Off in Power Purchases 21,000
Nomination Domination 12,332.3
Gone with the Wind Power! 11,625
Scam in Tenders for Permanent Buildings 9,000
Kickbacks from Liquor Syndicates 8,391.6
Central Funds to TDP Leaders 5,817
Massive Scam in Energy Department 4,000
Chandrababu's Splurge in Four Years! 2,615.76
Short Tenders for Five Towers 2,176
Amaravati Bond - Total Loss to State 2,000
Corruption Ails Health Department 1,827
MedTech Park Becomes Hotbed of Corruption 1,723
The 'Powered' Heritage 1,200

14 Emperor of Corruption
'Temporary' Robbery 1,031
Feeding on the Poor 800
Pushkaram Funds Gone Godavari Way! 750
Gone With Krishna 736
Corruption Lines in APTransco 675
Thermal Projects of Favoritism 670
Changing of High-Tension Electric Lines 380
Works on Nomination Basis 367.72
Benami Bags Fibregrid Project 333
SDF Funds GO Straight to TDP Leaders! 301.5
The CCTVs Scam 270
Ruling Party MP's Rate Prevails 240
Chief Minister Loots in Fibre Grid Contracts 220
Solar Golmaal!! 155
Land Levelling Scam 152.94
In the Name of Tourism Star Hotels Get All the Incentives 150
Gross Mismanagement of Medical Devices 120
Theft in the Name of Rain Guns 103
Pocketed in the Name of Jnanabheri Conferences 100
Chandranna Kanuka 100
Lokesh Swindles in the Name of Village Roads 80
Buttermilking the State 39
Cost of Babu Propaganda 23.72
Mining Scams: 14,502
Sand Mafia Plunders AP 7,950
Minister's Sketch for Granite Mines 2,000
Illegal Mining in Minister's Area 1,962
Limestone Looted 1,000
One-time Settlement for Illegal Mining 1,000
Mining Barytes Commissions 390
Imported Coal Lasts Long! 200
Total 6,17,585.19

Emperor of Corruption 15
Important Words and Abbreviations
YSRCP : Yuvajana, Shramika, Rythu Congress Party
TDP : Telugu Desam Party
BJP : Bharatiya Janata Party
CRDA : Capital Region Development Authority
ADP : Amaravati Development Partners Private Limited
GO : Government Order
APIIC : Andhra Pradesh Industrial Infrastructure Corporation
APMDC : Andhra Pradesh Mineral Development Corporation
APLMA : Andhra Pradesh Land Management Authority
CCLA : Chief Commissioner of Land Administration
GPA : General Power of Attorney
APGenco : Andhra Pradesh Generation Corporation Ltd.
APTransco : Andhra Pradesh Transmission Corporation Ltd.
CAG : Comptroller and Auditor General
NTPC : National Thermal Power Corporation
Discoms : Distribution Companies
CBI : Central Bureau of Investigation
IGRS : Information Gathering and Retrieval System
APZ : Agricultural Protection Zone

Poramboke Lands: These lands are not assessed to revenue records and they are outside the revenue
accounts. The government vacates people from these lands; they are not entitled to compensation.
Assigned Lands: The lands are the lands that were assigned to the SC, ST and other weaker section farmers.
These are basically small land entitlements, which range between 0.50 cents to 1-acre.
Lanka Lands: These are riverbank lands that can be cultivated for most of the time in the year. These lands
were allocated mostly to the SC and ST farmers and they have been their sole source of livelihood.
Jaribu Lands: This is another name for river bank lands.
Jirayath Lands: These are drylands; cultivation of these lands mainly depends on annual rainfall. The jirayat
land is used for seasonal crops.
Tehsildar: Tehsildar is a mandal level revenue official. In Andhra Pradesh, the Mandal Revenue Officer (MRO)
position rechristened as Tehsildar in 2006.
AgriGold: AgriGold is a company that has collected deposits on the line of Sarada Chit funds and Sahara
Corporation and defaulted on the repayment. It has collected deposits from more than 40 lakh small investors
from south Indian states and Orissa.
Kharif and Rabi: These are two important cropping seasons. The Kharif season is between July and October.
Rabi cropping season is between October and March (winter).
Choultry: This is a resting place or an inn for travelers, pilgrims or visitors to a site, typically linked Hindu,
Buddhist, Jain temples.
Swiss Challenge: This is a method of public procurement. Under this method, an entity can submit an
unsolicited bid to a government or public authority for a specific project. If the government likes the project
idea, then, the government would publish the bid details and invites third parties to match or exceed the bid.
The best bidder will win the project.
EPC Method: The Engineering, Procurement, Construction method, or EPC method, is a form of contracting
arrangement that makes the contractor responsible for all the activities from design, procurement, construction
to commissioning and handover of the project to the owner. This method doesn't allow mid-way escalation of
project costs and considered as one of the safest contracting methods for civil works.

16 Emperor of Corruption
IRRIGATION PROJECTS
SWALLOWED
Rs. 56,750 Crore
Indiscriminate Loot in Water Resources Department

Expenditure in four and a half years... Amount siphoned away in


Neeru-Chettu Programme commissions - Rs. 32,000 Crore
- Rs. 15,149 Crore Sand soil excavated and
Polavaram - Rs. 9,727 Crore sold - Rs. 24,750 Crore
Pending Projects - Rs. 37,246 Crore Total - Rs. 56,750 Crore
Total - Rs. 62,132 Crore

CLAIMS Will anyone spend Rs. 10,000 on a work that can


be done for Rs. 100? Will anyone ever borrow for
"With the exception of Polavaram and Uttarandhra wastefull spending? No sane person or organisation
Sujala Sravanthi, work of pending projects would be would do that. But, Chandrababu Naidu
completed with Rs. 17,368 crore. Additionally, 35.04 lakh government has been doing exactly that, with the
sole aim of bagging massive commissions. The
acres of ayacut would be provided with water. The state
collusion between the Chief Minister and
would be turned into a fertile region."
contractors has caused a massive hike in the costs of
- Chief Minister Chandrababu Naidu on July 28, irrigation projects. After hiking the estimated costs
2014, in the White Paper on irrigation projects. to Rs. 58,107.86 crore, Chandrababu Naidu has
borrowed funds from nationalised banks through
FACTS the AP Water Resources Development Corporation
Expenditure incurred by the Water Resources (APWRDC) with the pretext of the need for funding
Department on different irrigation projects was to the to complete the projects. For this, he had amended
the APWRDC Act, 1997, to increase the limit of
tune of Rs. 62,132 crore. Out of this, Rs. 15,139 crore was
borrowing by the corporation.
spent on Neeru-Chettu (Water and Tree) scheme, Rs.
Besides Pattiseema and Purushottapatnam lift
9,727 crore on Polavaram project and Rs. 37,246 crore on irrigation projects, all the other projects were
other pending projects. More than half of this amount, commenced during the time of late Dr. Y.S.
i.e. approximately, Rs. 32,000 crore was siphoned off in Rajasekhara Reddy. After coming into power, in a
commissions. As for Neeru-Chettu Programme, works white paper, Chandrababu Naidu government
were awarded to the handpicked cadre of the ruling stated that all the pending projects- barring
party on nomination basis and they, in turn, looted Polavaram and Uttarandhra Sujala Sravanthi in
another Rs. 24,750 crore by selling soil and sand, which North Andhra- would be completed within the
budget of Rs. 17,368 crore. However, the reality is-
they have got by digging the canals and desilting the
not a single project was completed after spending a
tanks and other water bodies. Thus, the total loot in the
massive Rs. 62,132 crore; which testifies for the
Water Resources department became a staggering Rs. massive corruption under Chandrababu.
56,750 crore (32,000 + 24,750)!

18 Emperor of Corruption
GOs issued by the Government in 2018, hiking the estimated costs of Telugu Ganga and Veligonda projects.

Misuse of Clause 60 (C) that the contractors could get additional funds even in
retrospective effect. As a result, the estimated costs of
As soon as TDP came to power, it removed the
the remaining works rose sharply and the budget
previous contractors by abusing clause 60 (C) of APDSS,
assigned for irrigation projects proved insufficient. The
which allows the removal of existing contractors in case
government then used the APWRDC to borrow heavily
of delays in project execution. Once the previous
and settled the bills of contractors for commissions.
contractors removed, the government hiked the
estimated costs of balance works even when the prices of
Work to Coterie Contractors
steel, cement, diesel and other commodities came down.
The government then awarded contracts of remaining After axing the original contractors and hiking the
works to its crony contractors, who would give kickbacks costs of projects, works were awarded to contractors who
and commissions. It's no coincidence that only a few agreed to pay commissions on nomination basis. The
companies have netted all the contracts and a good tender notifications were tweaked suitably to ensure that
number of contracts were given even on nomination coterie contractors were given most of the work. This has
basis. been the pattern for four and half years.
Overruling the objections from two Chief Secretaries, Along these lines, the contracts were awarded in
I.Y.R. Krishna Rao and S.P. Tucker, the government issued large measure to C.M. Ramesh-owned Rithwik Projects,
GO No: 22, which favoured the release of additional HES Infra owned by Finance Minister Yanamala
funds to the contractors if they make a request for the Ramakrishnudu's in-law Putta Sudhakar Yadav, BSPSAL
same. This GO has violated the basic principles of owned by Bollineni Seenaiah, RK Infra owned by a TDP
Engineering Procurement and Construction (EPC) leader from Kadapa, Megha, NCC, Navayuga, Surya
method, which doesn't allow any interim escalation of Constructions and a few other firms, for heavy
the costs of the civil contracts. Then the government commissions.
issued GO No: 63 approving the release of additional Rithwik Projects got the lion's share of works related
funds to contractors. The government did not stop there- to Handri-Neeva, Galeru-Nagari, Vamsadhara and
-it had issued orders bringing the works taken up by Veligonda projects. Most of the works related to
contractors after April 01, 2013, under GOs 22 and 63, so Pattiseema, Purshottapatnam, Kondaveetivagu and

Emperor of Corruption 19
Parts from GO No 22, which facilitates blanket increases in project costs,
issued the Government of Andhra Pradesh on 23.02.2015.

Uravakonda micro-irrigation schemes interest in the open market. The


The following are
and a major share of Handri-Neeva World Bank, Asian Development Bank
projects which according
works were given to Megha (ADB), Japan International
to the socio-economic
Engineering. The lion's share of survey of 2013-14 could Cooperation Agency (JAICA) and
Polavaram and Chintalapudi projects be completed at very other international lending agencies
were given to Navayuga, BSPSAL was little cost: could be approached for loans and
awarded the works linked to such borrowing would be treated as
Polavaram Right Canal and Krishna 1. Pushkara Lift foreign funding for projects.
Pushkarams and Surya Constructions However, instead of opting for
got Polavaram Left Canal works , on
Irrigation Scheme cheaper loans, the state government
nomination basis. All for huge 2. Thadipudi Lift borrowed Rs. 30,000 crore thorough
kickbacks. Irrigation Scheme APWRDC during 2018-19 and 2019-
The estimated costs were hiked 20, according to a clear design. The
3. Venkatanagaram
indiscriminately, as was revealed in the Pumping Scheme CM has been raising huge loans
CAG reports of the financial years of through the state agencies for huge
2015-16, 2016-17 and 2017-18. By 4. Vamsadhara kickbacks.
2017, to pay for the bill of the 5. Thotapalli The socio-economic survey of
contractors, the government has 2013-14 had revealed that most of the
borrowed Rs. 4,000 crore at an interest 6. Gundlakamma work on 11 projects had been
rate of 7.90% from banks through the 7. Telugu Ganga completed during the tenure of late
APWRDC. Besides that, the Water Dr. Y.S. Rajasekhara Reddy. If the
Resources Department sought the 8. Handri-Neeva remaining 5% works were completed,
release of an additional Rs. 30,000 9. First Phase of Galeru- a total of 2,03,628 acres would be
crore from the government. Again, the Nagari irrigated. In 2014, the officials had
government has asked the APWRDC to submitted a report to the government
10. Musurumilli
borrow the amount. stating that these 11 projects could be
The borrowing frenzy has attracted 11. Errakalva completed at a cost as little as Rs. 780
objections from the Finance crore.
Department. The Department has questioned the Had the government been committed to serving
government'a rationale to borrow at higher interest people, it would have completed these projects long
rates when funds were available at lower rates of ago. Instead, the government messed up the process

20 Emperor of Corruption
intentionally. It first axed the original
contractors, replaced them with the loyal The Jacked Up Costs of Irrigation Projects in
ones who heavy commissions. These new the last four and half years
contractors had no responsibility
whatsoever to complete the works as S.No. Project Name Initial Increased
they were paying heavy bribes to the CM. Estimation Estimation
As a result, the works on these projects re- 1. Vamsadhara 933.90 1,616.23
main incomplete. Though not a single ac-
2. Tarakarama Thirtha Sagaram 220.4 471.31
re is newly irrigated during his time, Cha-
ndrababu remains unfazed. He is trying
3. Mahendra Tanaya 127.00 466.28
tricks such as restarting the projects that 4. Janjavathi 70.55 107.03
were already dedicated to the nation. He 5. Pushkara Lift Irrigation Scheme 608.04 674.52
is trying to show the projects that already 6. Musurumilli 207.00 223.34
completed as his achievements. 7. Surampalem 44.37 69.74
8. Tadipudi Lift Irrigation Scheme 526.17 944.01
Shrinking Irrigation Basin 9. Chintalapudi Lift Irrigation Scheme 1,701.00 4,909.80
The AP has 199.04 lakh acres of 10. Gundlakamma 592.18 753.83
cultivable land. Of this, 104.20 lakh acres 11. Gorakallu 420.84 840.34
are being irrigated through the water 12. Galeru-Nagari First Phase 2,155.45 2,800.82
from different sources. Over the last four 13. Siddhapuram Lift Irrigation Scheme 89.72 116.51
and half years, however, the irrigated land 14. Handri-Neeva First Phase 2,774.00 4,317.00
has been shrinking. According to the 15. Handri-Neeva Second Phase 4,076.00 7,340.86
records of the Water Resources 16. Yadiki Canal System 548.82 768.90
Department, only 76 lakh acres are being
17. Mid Pennar South Canal 124.41 509.16
irrigated today. There is not a grain of
18. Dharmavaram Branch Canal 15.63 32.94
truth in the AP state government's claim
that more than 18,000 acres have been 19. Polavaram 1,6010.45 5,8319.06
irrigated additionally. The government 20. Poganda Reservoir 85.51 129.48
conceals the fact that lakhs of acres in the 21. Uttarandhra Sujala Sravanti 801.03 2,022.20
Krishna delta region have withered over 22. Telugu Ganga 4,460.64 6,671.62
the last four and half years. 23. Veligonda Tunnels 1,359.81 1,956.30
Total 37,952.92 96,060.78

Emperor of Corruption 21
Rs. 25,000 Crore
Polavaram Project Drained
Project Estimates Hiked from Rs. 16,000 Crore to Rs. 57,940 Crore
Plans to Siphon off Rs. 25,000 Crore
Works Still at Foundation Stage
CM, Water Resources Minister Get Kickbacks
Works Assigned to Sub-Contractors

Tall Claims
"We will complete Polavaram project by 2018
Kharif season and provide water for irrigation
through gravity."
This was the claim of AP Chief Minister Chandrababu
Naidu while taking the oath of office on June 08, 2014.
After four and half years and four kharif seasons, the
Polavaram project has yet to progress from its
foundation stage. Meanwhile, the estimated costs of the
project have been hiked from Rs.16,010.45 crore to Rs.
57,940.86 crore. If there is progress on any count for
Polavaram project, it is only in the project estimates.
Chandrababu Naidu snatched Polavaram project GO No. 118 Issued to Increase Estimated Costs of
from the centre despite the AP State Reorganisation Act, Polavaram Right Canal from Rs. 2,240.69 Crore to Rs.
2014 clear mandate that it should be completed by the 4,375.776 Crore.
central government. Though he had claimed that his
decision would help speed up the project construction,
it was the kickbacks that he actually was energized
about.

Greedy CM
Once taken over the project, Chandrababu jacked
up the estimated costs of the works and awarded them
to his favoured contractors and sub-contractors, for
huge kickbacks. The contracts of Head Works, Right and
Left Canals were assigned to crony contractors through
rigged tenders and on nomination basis. The collusion
of the government and contractors has undermined the
quality of project and awfully slowed down the speed of The GO No. 118, which increased the
project. estimated cost of balance works from
Thus, the greed of the Chief Minister brought down Rs. 2240.69 crore to Rs. 4375.776 crore.
the state's largest multi-purpose project. His fondness

22 Emperor of Corruption
for kickbacks and commissions has jeopardized the
project's completion. Today, the Polavaram officials are of It was Not Okay Then, But it's
the opinion that water cannot be released even in 2019
kharif, let alone 2018 kharif season.
Okay Now!
In 2013, Chandrababu Naidu, while he was the
Vision Sabotaged leader of Opposition, had objected to Transstroy
It was late Y.S. Rajasekhara Reddy who envisioned being handed a contract of Rs. 4,054 crore, saying
Polavaram project and began the work in earnest in that the firm lacked the requisite experience and
2005. After securing all the necessary permissions, work financial wherewithal. However once Rayapati
began at a fast pace at an estimated cost of Rs. 10,151 Sambasiva Rao, the owner of Transstroy joined the
crore. An amount of Rs. 5,135.87 crore was spent and TDP, Chandrababu Naidu did not pay heed to
most of the work including the lining work of the Right PPA's objections about Transstroy's lack of
Canal was completed at that time. Work on the Left Canal competence to undertake the project.
was completed to the extent of 145 km. On September 07, 2016, the state government
The benefits of Polavaram are vast and its completion secured the project and immediately jacked up
would immensely boost the economy of the north and the estimated cost of Headworks to Rs. 5,535.41
central Andhra districts. On completion of this project, 8 crore. Using Transstroy as a front, it assigned all
lakh acres can be newly irrigated and the ayacut can be the works to subcontractors for huge
stabilised for 13.08 lakh acres in the Krishna Delta region. commissions. ECRF foundation works were given
The Godavari Basin would get water for three crops in a to L&T-Bower, cofferdam (jet grouting) to Keller,
year. As to drinking water and industrial needs, soil-related work to Triveni, Gates to BKem and
Polavaram project can provide potable water to concrete works to Putzmeister and Penta.
Visakhapatnam city and 540 villages and take care of the However, colossal failure of Transstroy, which
complete industrial needs of Visakhapatnam city. was predicted, lead to handing over all the works
However, the project came to a standstill after the to Navayuga Constructions, on nomination basis,
sudden demise of Dr. Rajasekhara Reddy. Post- in 2018. Fresh estimates suggest that these works
bifurcation, the centre had declared Polavaram as a are valued at Rs. 11,000 crore. The Transstroy was
national project and promised to complete it by bearing awarded these works on EPC basis. However,
100% expenses. The centre has established the while reassigning the works to Navayuga, the
Polavaram Project Authority (PPA) for this purpose. government set aside the EPC method and
However, instead of entering into an agreement with the brough in the lumpsum open method. As a result,
PPA for completion of the project, Chandrababu Naidu each time contractors submit bills for
pressurised the centre to hand it over to him. modifications, they have to be paid additional
National Level Scam funds without any questions asked. This would
All the works of Polavaram Headworks were assigned further hike the costs of projects, whch means
to sub-contractors; against heavy commissions to the higher kickbacks for the CM and his ministers.
Chief Minister and Water Resources Minister. The Right
Canal works were almost completed by 2009 and there the government sacked the initial contractor under
was a little work remains to be completed in 6th and 7th clause 60(C) and then turned over works worth Rs. 142.88
Packages. Chandrababu Naidu removed the original crore to HES Infra, which belongs to Putta Sudhakar
contractors and assigned these contracts at higher costs Yadav, a TDP leader, TTD Board Chairman and a close
to RSV and BASPCL, both the companies belong to aides relative of the AP Finance Minister Yanamala
of Chandrababu Naidu. The government took up 181.50 Ramakrishnudu. As per the revised estimates, the total
km excavation work of Left Canal in 2005 at the cost of cost of these works would be over Rs. 350 Crore. The
Rs.1,954.74 crore. The work was divided into 8 Packages contractors of Packages 1, 3, 4 and 8 were also sacked
and assigned to different contractors. After 65% of the under 60-C for not completing the assigned works in
works on the project had been completed, on December time.
6, 2016, the government issued orders hiking the In 2017, the government decided to supply water to
estimated costs to Rs. 3,645.15 crore. Yeleru through the Purushothapatnam lift irrigation
On the pretext of not completing works in Package 5, scheme and accordingly, took up works on the

Emperor of Corruption 23
Polavaram Left Canal. Because both the Water Resources amounts, running into thousands of crores of rupees by
Department and Finance Departments refused to duping the poor Tribal people. The same is the story with
approve the handing over of high-value works on huge amounts meant for resettlement of the displaced.
nomination basis, the remaining Rs. 92.14 crore worth
work in Package 1, Rs. 53.263 crore and Rs. 102.85 worth Progress in Jacking Up Costs
works in Package 4, Rs. 80.74 crore worth works- a total of So far, only 53.90 % of the work of the Polavaram
Rs. 328.52 crore worth works- were given to contractors project is completed. Of these, 37.68% works of the
just on the word of Chandrababu Naidu! reservoir were completed, Right Canal works fully
Works in Package-1 were awarded to Surya completed and the Left Canal works were completed
Constructions, RSR-Sagittal (works in Package-4) ACAL- between 210.927 km and 164.74 km. The value of these
RKICPL (joint venture), Arcane Projects (works in works is over. Rs. 14,902.34 crore. In these four and half
Package-8), and works in Package-3 to other contractors. years, Rs. 9,766.47 crore has been spent and of this
As per the revised estimates, the total value of these Rs.6,727.26 crore has been reimbursed by the centre. To
projects would be Rs. 1,045 crore. In these transactions, date, ECRF Dam work related to the main dam has not
the Chief Minister made huge kickbacks. Similarly, in been completed. There is no clear timeline as to when
2015, temporary works amounting to Rs. 523 crore to they should be completed. Of the 45 designs related to
channel water from the Pattiseema lift irrigation project the Head Works of the reservoir, 25 are non-existent.
to Krishna Delta area was awarded to a favoured Chandrababu Naidu government failed to complete the
company on nomination basis. project on schedule intentionally and increased the
The TDP leaders and officials also have made money estimated costs from Rs. 16,010.45 crore to Rs. 57,940.86
from the land acquisition process of Polavaram project crore, citing the delay that he has caused in the first
by deceiving the Adivasi landowners, who form a good place. All these facts reflect the sincerity of Chandrababu
number of the displaced. The TDP leaders and officials Naidu's efforts to complete this project.
lined their pockets in a big way with the compensation

24 Emperor of Corruption
Rs. 4,834 Crore
Red Carpet for C.M. Ramesh
Unstoppable Extortion
First Notification Rules Second Notification Rules Third Notification Rules

 The works shall be completed within The rule  The works shall be completed within
18 months from the date of agreement. pertaining to 12 months from the agreement date.
 The companies that have completed sub-surface sub-surface
 The companies that have done a
dam works worth a minimum of Rs. 3.81 crore in dam works
minimum of 21,70,176 lakh cubic
a year between the years of 2006-07 and 2015- was removed
meter earth work and 30,312 cubic
16 are eligible to participate in the tender. as it could
meter cement work between 2006-07
 The companies that have a minimum of Rs. attract legal
and 2015-16 are eligible to participate
37.54 crore annual turnover, the experience of objections and
in the tender. The companies must
minimum of14.46 lakh cubic meter earthwork the rest of the
have done a minimum of Rs. 56.31
and 20,208 cubic meter cement work in the last rules were
crore worth works in the last ten years.
ten years are eligible to participate in the tender. continued in
 They shall also submit a letter from
 The companies shall also submit a bank letter the second
the banks confirming the cash deposit
confirming the cash deposit of Rs. 18.77 crore. notification.
of Rs. 28.15 Crore.

C.M. Ramesh, a TDP MP and benami of Chandrababu the new contracts to Rithwik Projects. Thanks to Babu's
Naidu is literally ruling the AP Water Resources favoritism, so far, Rithwik Projects of Mr. Ramesh bagged
Department, with the active support of the Chief quite a few contracts worth Rs. 4,834 crore.
Minister. The CM is directly awarding contracts to As to HNSS second phase, Chandrababu has
Ramesh by circumventing the competitive bidding removed the contractors of 4th, 5th and 6th packages.
processes. In order to award contracts to his crony He then revised the estimated cost of balance works
contractors, the CM had removed several contractors by from Rs. 235 crore to Rs. 568 crore and awarded the
taking advantage of the 60(C) clause of the APDSS. Then, contract to Ritwhik Projects on quotation basis. The 87th
hiked the estimated costs of the balance works and package of Vamsadhara second phase was also
gifted these fresh contracts to his crony contractors. subjected to the same fate. The initial contractor was
For quite a few projects, the Chief Minister used the axed for his 'execution delays', the government hiked the
same modus operandi of removing the existing balance work costs to Rs. 221 crore from previous Rs. 47
contractors, jacking up the esitmated costs and award crore, and awarded it to Rithwik Projects.

Emperor of Corruption 25
When the Finance Department refused to grant
consent for these nominated contracts, the Water
Resources Department has issued a tender notification
with twisted rules. Even if any other company was ready
to participate in the tender process, the Department had
ruled out their participation. It would disqualify them by
citing some testy conditions of the technical bid. Then,
the contracts were suessfully gifted to the chosen
contractors.
In the 27th package of Galeru-Nagari project, the
value of balance works was only Rs. 11 crore. However,
the cost has shot up to Rs. 112.83 crore once the
contractor of the package was removed.
After awarding to Rithwik Projects, the bills of this
contract were halted for some time due to the disputes
between C.M. Ramesh and the Water Resources Minister
Devineni Umamaheswara Rao regarding percentages in
The memo issued by the CS of Water Resources
the cut. In retaliation, Ramesh wrote to the CM about the
Department to the Chief Engineer on the allegation
way the minister was benefitting his favoured contractor
of irregularities in Avuku tunnel works.
to the tune of Rs. 54 crore in the Auvku tunnel works of
Galeru-Nagari project. To rein in the conflict and avoid
further damage, the CM has brokered a compromise and HES Infra, the only companies that have submitted
between the two. Since then, the clout of C.M. Ramesh the bids with higher quotes. Among the two, Rithwik has
had gone up in the Water Resources Department. had the lower quote. This is a clear indication for the
The balance work of the 29th package of Galeru- government bias towards Rithwik and in fact the
Nagari project has also eventually landed in the hands of government had already made up its mind to award the
Rithwik Projects. The work which was worth Rs. 8.93 contract to the company; and merely ran the tenders'
crore was retendered with an increased estimated cost drama.
of Rs. 83.95 crore, 10 times higher to the original cost.
Needless to mention, this contract was also gifted to Same Method…
Ritwik Projects by flouting the existing rules. Indeed, these two packages were actually a single
package- i.e. 36th package- and Om-Ray joint venture
Handri - Neeva Looted won the contract of this package in 2005. It had
For the HNSS second phase, the government has completed the works worth Rs. 51.72 crore. The
called for tenders for 36A and 36B packages. The 36A contractor requested the government for additional
package was for the widening of Perur branch canal funds, as mandated by GOs. 22 and 63, to complete the
(between 1.820 km and 3.270 km) and providing remaining works. Though Chandrababu gave additional
irrigation water to 65,600 acres in Rayadurgam and funds to his favoured contractors with the pretext of
Uravakonda constituencies by constructing speeding up the pace of the projects, he turned down
distributaries under Malyam canal. The 36B was for the request by Om-Ray and removed them from the
providing water for 15,000 acres by constructing the contract. The balance works cost was hiked to Rs. 252.09
right canal from Jeedipally Reservoir and the crore, the package was divided into two packages- 36A
distributaries. The estimated costs of 36A and 36B were and 36B and they were awarded to Rithwik Projects.
Rs. 233.40 crore and Rs.18.69 crore, respectively. Previously, under the 36 package, a total of 63 km
To ensure a 'smooth award' of the projects to works- 21 km Malyala branch canal, 17 km Hagari
Rithwik, the government did not upload the details of branch canal and the distributaries of 25 km- were
the 36A package on its website. The details of the 36B completed. Only another 32 km works remained.
package were shown for both 36A and 36B tenders. According to the experts, the balance works wouldn't
Until the completion of tender schedules, the details of cost more than Rs. 100 crore under any circumstances.
36A were not made available to contractors. This means the Chief Minister has pocketed about Rs.
These details were available only for Rithwik Projects 150 crore from these two contracts.

26 Emperor of Corruption
Rs. 3,000 Crore
Opposition of Two Chief Secretaries Could Not Stop
Corruption in Irrigation Department
Scam in the Name of Cost Escalation, to the Tune of Rs. 6,000 Crore
The Cut that was Given as a Return Gift of Rs. 3,000 Crore

Some parts of the GOs 153, 154 and 156 which have finalised the additional payments.

After coming into power in 2014, Chandrababu without even obtaining administrative approvals for
Naidu has removed the existing contractors from the them. While tenders have been called for 25 packages
works of Galeru-Nagari Sujala Sravanthi (GNSS), Handri- of different projects, in a strange coincidence, all of
NeevaSujalaSravanti (HNSS), Gorakallu and many other them were won by the companies of the ruling party
projects. Then he had jacked up the costs of the leaders.
projects many times and called for new tenders While most of the tenders were won by Rithwik

Emperor of Corruption 27
Projects, the company of C.M. Ramesh, a TDP MP and called 'new cost escalation' proposals. However, two
Chandrababu's close confidant, the remaining few have previous Chief Secretaries- I.Y.R. Krishna Rao and S.P.
ended up with the companies of other cronies. It was Tucker- have refused to sign the escalation proposals as
visible that the favoured contractors have bagged all they were a total sham.
the contracts by forming a ring with the active support To counter the opposition of Chief Secretaries, the
of the Chief Minister. Chief Minister Chandrababu Naidu and his son Nara
Thus, the CM had prepared the ground for a daylight Lokesh have brought forth a new route called 'cabinet
robbery of Rs. 6,000 crore. In all packages, mobilization approval'. To the horror and shock of bureaucrats, the
advances were issued, about 50 % of bills were paid highly corrupt cabinet has 'approved' the thoughtless
before taking any administrative approvals. As the cost escalation proposals. Despite the 'approval' of the
officials of Finance Department started raising cabinet, the Chief Secretaries refused to sign these
objections to this illegal process, the Chief Minister and proposals. Due to their opposition, the proposals have
the Water Resources Minister have coerced them to gone back to the cabinet thrice.
silence. Indeed, the payment of advances and bills A proposal going back to the cabinet thrice due to
without administrative approvals was against the law opposition from the Chief Secretaries could be the first
and would attract the audit objections. of its kind incidents in the history of independent India.
Highlighting these intentional lapses, the media has Two Chief Secretaries refusal to give consent to the
published extensive, well-researched stories on the government proposals indicates the dangerous levels of
corruption in Water Resources Department. To dodge corruption of Chandrababu Naidu's regime. It is learnt
media criticism, the government has sought to legalize that Rs. 3,000 crore- half of Rs. 6,000 crore- was taken as
the Rs. 6,000 crore scandals and came out with the so- his cut by the Chief Minister.

Rs. 3,000 Crore


Needless River Linking, Indiscriminate Loot
Rs. 6,020 Crore for First Phase of Godavari-Penna Linkage
Rs. 3,000 Crore Kickbacks to the Chief Minister

Chandrababu Naidu is in a hurry to sanction as Karnataka and the increased water usage is the
many contracts as possible to his benamis and cronies. second reason. River linkage is one of the ideas that
In this process, he is focusing on smaller projects Andhra Pradesh government is presently considering
despite the fact they would lose their relevance once to face the water shortages.
the original, bigger projects are constructed. For As part of the project, the AP government has
instance, Patti Seema project would loss its relevance started its efforts to divert water from the Godavari to
once the Polavaram project completed. Now, Krishna. It has entrusted Vyapkos, a central
Chandrababu Naidu has taken up one more of such government organisation that specializes in irrigation
projects- Godavari-Penna linkage project; only to have projects, with the responsibility of survey, feasibility
one more contract for his cronies. Here is the full story. study and preparation Detailed Project Report (DPR).
The water availability has gradually come down in
Andhra Pradesh and Telangana because of two Vyapkos Report
reasons. The first reason is the construction of new Vyapkos, after an extensive study, suggested the
dams in upper riparian states such as Maharashtra and roadmap for river linking project between Godavari

28 Emperor of Corruption
and Penna rivers. Here are the details: Report Doesn’t Matter!
1. From the upper side of Polavaram reservoir, 3.50
TMC water has to be lifted and shifted through a Despite a very clear recommendation from
canal every day. Vyapkos, the state government has taken its own
2. This Godavari water has to be sent across Krishna decision as to the Godavari-Penna linkage project. It
river through an aqueduct that would be built on has distorted the recommendations and gave nod for
the upper side of a reservoir that is going to come the first phase of the linkage. According to the state
up on Krishna river at Vaikuntapuram. government understanding, already 8,500 cusecs
3. Then the water will have to be stored at the water is being lifted from Patti Seema Lift Irrigation
reservoir that is going to be built at Bollapalli with Scheme into Polavaram Right Canal. Another 7,000
200 TMC capacity. cusecs water will have to be lifted into Polavaram
4. From Bollapalli Reservoir, the water can be sent to Right Canal, that water could be sent to Prakasam
Nagarjuna Sagar Right Canal. barrage through Patti Seema canal.
5. From Nagarjuna Sagar Right Canal, the water can After the transportation losses and en route usage,
be further shifted to Somasila Dam, which is on 14,000 cusecs would reach Prakasam Barrage. From
Penna river, through a dedicated canal. En route, this water, 7000 cusecs could be released to Krishna
the water can fill the reservoirs of Gundlakamma, Delta and the remaining 7,000 cusecs could be lifted
Muppavaram, Chinnipadu and Uppuluru in from Harichandrapuram in two phases and released
Prakasam district and provide Godavari water to into Sagar Right Canal at 80 km point. This water
this entire ayacut. would reach the ayacut. In order to make this happen,
Thus, a total of 320 TMCs water can be diverted a canal of 56.5 km length and pressure mines through
from the Godavari and make it available to Sagar Right 10.09 km are required.
Canal, Penna delta and the drought-prone regions of The government gave its nod for these works at an
Prakasam district. To divert Godavari waters to Penna, estimated cost of Rs. 6,020.15 crore on June 13, 2018.
a canal, which includes some tunnel part, to the Tender notification was issued and the contract was
extent of 701 km has to be constructed. This channel given a favoured contractor. However, if once the
must have the additional capacity to shift 4.9 TMCs a Godavari-Penna linkage is done according to the
day. Vyapkos original recommendations, the present
According to Vyapkos, this plan would cost Rs. project taken up by the state government at the cost
80,000 crore. Since, the estimated cost is a bit higher, of Rs. 6,020.15 crore will go waste!
Vyapkos suggested taking up this project in five
phases.

Emperor of Corruption 29
Rs. 2,000 Crore
Coterie Contractors Profited
Rs. 4,000 Crore Burden Imposed by GO: 22 and GO: 63
Chandrababu Naidu time and again broke rules to
serve the intereest of his cronies. This is one such of
examples. He insisted on pushing a proposal through
the cabinet though it was in violation of rules. The
proposal was supposed to favour contractors at the
expense of state exchequer. He asked the cabinet on
January 20, 2017, to approve the issuance of GO: 22 and
GO: 63, which would ensure the release of additional
funds to contractors of newly undertaken projects, in
violation of engineering and procurement (EPC) rules.
However, with the media highlighting the glaring
irregularities and violations in the proposal, he backed
off for the time being. But exactly after 87 days, he made
sure that the cabinet approved the proposal that paved
way for large scale corruption.
These two attrocious GOs- 22 and 63 have burdened The GOCE report dated November 29, 2107, which
the state by Rs. 20,000 crore while gave additional funds batted for the additional funds to the new projects.
to the contractors who are close to the CM. By issuing
these GOs, Chandrababu Naidu gifted himself at least Rs.
making provision for the sanction of additional funds to
2,000 crore. Here is the complete story.
contractors. To put this GO into affect, he issued GO: 63
He Did What He Opposed on June 12, for sanction of funds to bills for additional
When in Opposition expenses. These two GOs have burdened the state
exchequer by Rs. 20,000 crore.
On February 7, 2014, as the Opposition leader These GOs were meant to be applicable only to the
Chandrababu strongly opposed GO: 13 issued by Kiran projects that were undertaken before April 1, 2013.
Kumar Reddy government in undivided Andhra However, this rule was also changed thanks to the
Pradesh. The GO proposed to increase the irrigation pressure from C.M. Ramesh. He had claimed that
projects' costs vis-a-vis the costs of the prices of steel, without additional funding for Rs. 169.71 crore, it would
cement, diesel, labour and material. Chandrababu be impossible to complete the Kuppam Branch Canal, a
mounted strong criticism against the GO and alleged part of Handri Neeva Sujala Sravanthi, by his company
the government of having struck backroom deals with Rithwik Projects. He gave an ultimatum to the
contractors. This GO was set aside by Governor E.S.L. government that his company would halt work on the
Narasimhan temporarily during the President's rule. project unless additional payments were made.
Once TDP came to power, Chandrababu Naidu, who Instead of taking action against Rithwik Projects as
had backroom deals with contactors, overruled the per EPC procedure and impose fines, the AP
objections of the Water Resources Department, Finance government gave in and took the side of Rithwik
Department and has also completely ignored the Projects instead. In the same fashion, all the coterie
suggestions of then Chief Secretary I.Y.R. Krishna Rao. contractors resorted to hard bargaining saying that it
On March 22, 2015 the AP government issued GO: 22 was not viable for them to continue their work on the

30 Emperor of Corruption
project.
Once the kickback amounts
Pressure on BOCE
were settled, CM Chandrababu The SLSC clearly stated that GOs 22 and 63 were not applicable
Naidu exerted tremendous to new projects and they were against established rules. The Chief
pressure on the State Level Minister then directed the SLSC that the proposals should be placed
Standing Committee (SLSC) to before the Board of Chief Engineers (BOCE) Committee. On
bring the new projects under November 29, 2017, at a meeting of the BOCE, succumbing to
the purview of GOs 22 and 63. pressure, the Committee submitted a report stating that projects
Without these GOs, the taken up after April 01, 2013 could also be brought under the
projects could have been purview of the two GOs. Chief Minister Chandrababu exerted
completed by now as well as pressure on the Water Resources department and Finance
Rs. 20,000 public funds would Department to implement the recommendations of BOCE.
have been saved.

Rs 1,590 Crore
Siphoned Off in Soil Embankment Works
Estimated Cost Hiked from Rs. 809 Crore to Rs. 2,400 Crore
Rs. 1,590.47 Crore Swindled in the Bargain
Huge Kickbacks to CM and Water Recourses Minister

This is yet another corrupt chapter in Polavaram soil embankment work by three times from Rs. 809.53
project. Chandrababu Naidu jacked up the estimated crore to over Rs. 2,400 crore. Then the contract was
costs of Polavaram Earth-Cum-Rock-Fill (ECRF) Dam awarded to Ratna Infrastructure. This company

Emperor of Corruption 31
belongs to M.M.L. Narasimha Rao, who is a close According to the 2015-16 prices, the value of these
confidant of the Water Resources Minister Devineni works was Rs. 1,417.73 crore. Already an amount of Rs.
Umamaheswara Rao. 462.2 crore has been spent on construction of the
Interestingly, the work was given on a nomination ECRF foundation wall. Another Rs. 146 crore bills were
basis purely based on Chandrababu's oral orders. The claimed for cofferdam foundation construction (jet
entire handing over of the project took place without grouting works). This means a total of Rs. 608.2 crore
the approval of either the Polavaram Project Authority was spent on foundation work alone. The Chief
(PPA) or the Water Resources Department or the Minister pocketed kickbacks from L&T-Bauer
Finance Department. Here are some interesting facts (foundation wall work) and Keller (for coffer dam-
about this contract. related works). At this rate, the costs of ECRF Dam,
■ According to the 2015-16 costs, the costs of Earth- cofferdam works amounts to only Rs. 809.53 crore.
Cum-Rock-Fill (ECRF) Dam were estimated at Rs. However, the cost estimates were increased three-fold
1,417.73 crore, out of which Rs. 608.2 crore was to over Rs. 2,400 crore.
spent and Rs. 809.53 crore yet to be spent.
L&T, Shapoorji Pallonji Out
However, at this point in time, the costs were
jacked up thrice times to Rs. 2,400 crore. The Chief At first, the Chief Minister had decided to award
Minister and the Water Resources Minister were the ECRF works to L&T on nomination basis. However,
the principal beneficiaries. as the kickbacks couldn't be agreed upon with L&T,
■ As the ECRF Dam yet not completed, Chandrababu Transstroy brought in another sub-contractor
Naidu tried hard to cover up this failure by Shapoorji Pallonji into the picture. Meanwhile, the
announcing the completion of the Dam works Water Resources Minister Devineni Umamaheswara
right after the completion of the work of the Rao interfered and sought the contract for Ratna
diaphragm wall, which forms the foundation for Infrastructure, a construction company owned by his
ECRF Dam. The CM has unveiled a huge pylon to friend M.M.L. Narasimha Rao. The minister could
celebrate this occasion. successfully get the contract awarded to Ratna
■ With the handing over of ECRF Dam works to Ratna Infrastructure once the commission percentage was
Infrastructure, all the works of Polavaram Head settled.
Works were given to sub-contractors. The principal According to the rules outlined in the PPA gazette
contractor of Head Works Transstroy thus confined notification, contractors cannot be awarded works on
itself to the role of a commission agent. nomination basis without permission from the
authority. Chandrababu was well aware of this rule as
Huge Kickbacks the Water Resources Department officials informed
The ECRF Dam stores the water of Polavaram him of the PPA rule in a meeting. Despite having the
project. Once water levels reach 194.6 TMCs, the full knowledge, Chandrababu Naidu insisted on
excess water would be diverted into the river through handing over the contract to Ratna Infrastructure on
the spillway. Two cofferdams have to be built in order nomination basis on LumpSum (LS)-open method.
to construct the ECRF in three parts- 564 metre-long Though the CM was aware that the LS-open method
Gap 1, 1750 metre-long Gap 2 and 140 metre-long would empower the contractors to keep on
Gap 3- and divert the Godavari flow through the submitting bills for additional amounts and
spillway. While one cofferdam of 2,050-meter length government would be liable to pay them, he pushed
should be built on the upper side, another cofferdam for this new arrangement only for huge kickbacks.
of 1,417-metre length would be built on the downside
of the dam.

32 Emperor of Corruption
Rs. 1,500 Crore
EPC Out, Additional Funds In!!
The Additional Funds Paid to Contractors Rs. 3,000 Crore
The Amount of Commission Rs. 1,500 Crore

The GO: 22, a great


boon to contractors.

Chandrababu Naidu's government has procedures too. Though this was a burden on
issued the GO MS No: 22 to grant additional state exchequer, it is has worked perfectly for
funds to contractors. This controversial GO has him as he could eventually get massive
permitted the state government to escalate kickbacks from the contractors. For the first
the costs of ongoing projects that were time, the CM has applied the Standard
awarded even under the EPC (Engineering, Scheduled Rates (SSR) to concrete works.
Procurement and Construction) method, wh- Because of this decision, the rate of cubic
ich doesn't allow any escalation under any meter concrete went up from Rs. 2,500 to Rs.
circumstances. 4,000. The government has again increased
Chandrababu successfully overrode the the cubic meter rate further by another Rs.
EPC provisions with the GO No:22, which not 3,000 to Rs. 7,000 within a few weeks.
only allowed for cost escalations but also with The GO:22 has made reckless provisions for
a retrospective effect from 2013. This GO was a the additional funds to labour, sand,
great favour to the ruling party contractors machinery, dewatering, controlled blasting,
and it has inflicted a heavy loss to the digging for hard soils, among others and none
exchequer; that too when the prices of of them require additional payments
commodities like petrol, steel, diesel, cement according to the EPC norms. This decision has
and sand were on the downside. burdened the state exchequer by Rs. 3,000
To benefit the contractors, Chandrababu crore and a half of this amount had gone into
Naidu has killed several other prudential the pocket of the Chief Minister.

Emperor of Corruption 33
Rs. 930 Crore
Megha Bags Purushottapatnam, Kondaveeti Rivulet Tenders
Estimated Cost of Two Projects Rs.1,861 Crore
Kickbacks (a clear 50%) Rs.930.5 Crore

Chandrababu who brags about his preference for foreign


Short tender was called for Purushottapatnam Lift Irrigation companies has strangely barred them from participating in the
Scheme without mentioning it in the official gazette. tender of Purushottapatnam Lift Irrigation Scheme.

Megha Engineering, which has bagged several Chandrababu Naidu had played the key role in
projects including Pattiseema Lift Irrigation Scheme, changing the tender rules, getting the pre-determined
was given two more contracts- Purushottapatnam Lift bids from the two chosen companies and finally
Irrigation Scheme (of Rs. 1,648 crore) and Kondaveeti awarding the works to both the companies. He got his
Rivulet Floodwater Diversion Project (of Rs. 213 crore), cut form both the companies. However, to avoid doubts,
which was taken up to prevent flooding in the capital he also made the HES Infra Pvt. Ltd., another crony
city region. The combined value of these two projects company, submit the third bid. Incidentally, HES Infra
was Rs. 1,861 crore and 50 percent of it i.e. Rs. 930.5 crore belongs to Putta Sudhakar Yadav, a TDP leader and close
was a kickback to the Chief Minister. relative of the AP Finance Minister YanamalaRama-
In order to award the contract to Megha krishnudu.
Engineering, Chandrababu Naidu used many tricks.
Favouritism began with the government giving only 15 Another Bonus: Megha
days time to bid for the contract. While only two
companies- Megha and Navayuga- participated in the
gets Kondaveeti Rivulet Works
tender bidding, the government has disqualified Megha has emerged as the L-1 company for both the
Navayuga citing the lack of bid capacity and by default, projects: Purushottapatnam Lift Irrigation Scheme and
Megha was recommended as the single eligible bidder. Kondaveeti Rivulet Floodwater Diversion project. The
Since there was a clamour in the media about the High-Power Committee headed by the erstwhile AP
single bidding, the government has called for a fresh Chief Secretary S.P. Tucker has approved the awarding of
tender, however, again giving only a week's time for contracts both the projects to Megha Engineering.
bidding. Again the same two companies submitted the Interestingly, both the tenders had a rule against the
bids, and while this time around, Navayuga has qualified participation of the companies from abroad. The foreign
for bidding and Megha bagged the contract by quoting companies were also barred from forming joint ventures
4.55 percent excess (the tender price). However, under with Indian companies! Besides that, the government
an arrangement, Navayuga was given the civil works tweaked the tender rules in such a way that only Megha
and the Chief Minister stood to gain from both the and Navayuga could possibly participate in the tender.
companies, by way of kickbacks. The favouritism was at its absolute best!

34 Emperor of Corruption
Rs. 710 Crore
Pattiseema Project- Exclusively for Kickbacks
After the Escalation,the Cost of PattiseemaProject has Gone Up To Rs. 1,600 Crore
The Kickback for the Chief Minister Rs. 450 Crore
Amount Pocketed by the Contractor by Changing the Project Design Rs. 260 Crore

The memo said 5 %


additional amount
shall be paid to the
contractors if they
complete the works
within the deadline.

Polavaram project is a great boon to the state completing the project in time! However, the matter of
Andhra Pradesh. Instead of completing it in time, the fact was- the same one year period was the given
Chandrababu Naidu brought forth the Pattiseema deadline in the tender schedule. That effectively means
project, which was a small part of the Polavaram project. the contractor was being overpaid 16.9 % of the
The cost of this temporary, no-storage project was contract amount for just completing the work in time!
estimated to be a whopping Rs. 1,300 crore and the What more? The bonus clause was not even a part of
contract was awarded to Megha Engineering, a the contract when the tenders were called. Chief
company that is close to Chandrababu Naidu. All this Minister Chandrababu Naidu has got this provision
was done for the sake of kickbacks. The Chief Minister added to the contract to get additional kickbacks. The
and the contractor made Rs. 710 crore out of this project. Chief Minister and his son Lokesh have escalated the
Here is the story. cost of Pattiseema project to Rs. 1,600 crore and
To begin with, some of the important conditions in pocketed about Rs. 710 crore. It is learnt that the
the tender schedule were twisted in favour of a few kickbacks were the reason for the government's
chosen companies. Though the estimated project value generosity towards the contractor.
(EPV) was Rs. 1,300 crore, the bid of the L1 contractor i.e. Open Exploitation
Megha Engineering was Rs. 1,600 crore, which was 21.9
The number of motor pumps has come down from
% higher than the EPV. Still, the company was given the
30 to 24 and Pipelines have come down from 15 to 12.
contract by converting the remaining 16.9 % (quoted
Costs have come down, but not the project value!!
21.9 % -5 % possible excess) into the bonus for
Megha Engineering downscaled the project cost,

Emperor of Corruption 35
thereby augmented its profits. The company has has approved the changed design without raising any
changed project design without obtaining required objections. This means the government and the
permissions from state government and started contractor had complete understanding and pocketed
working. The Chief Minister also found merit in the the taxpayers' money.
contractor's 'design' as it also serves his purpose i.e. he Megha has sent its new proposal, after bringing
could get his cut from the 'savings'. down the motor pumps and pipelines, to the Central
The initial contract between the state government Designs Organisation (CDO) on July 27, 2015. However,
and Megha Engineering was to lift 8,500 cusecs of water even before getting this design approved, the company
by creating a cluster of 30 motor pumps and 15 had placed an order with a Chinese company for 24
pipelines. However, the company has got reduced the motor pumps. This indicates the contractor's level of
number of motor pumps to 24 and pipelines to 12. This confidence as to getting approval for his new design.
effectively brought down 20% of the estimated cost i.e. The contractor was supposed to lay 15 lanes of the
Rs. 260 crore due to the economies of scale. pipes of 3-meter diameter. However, he laid 12 lanes of
Generally, when the number of the pipelines and 3.2-meter diameter pipes. Chandrababu government
motor pumps comes down, the actual cost of the raised no objections and approved all of the changes, for
project should also have come down. But, it did not. obvious reasons!
Despite such blatant discrepancy, the AP government

Rs. 573 Crore


Chintalapudi Extension Works Fell Prey to CM
Rs. 223.03 Crore 'Additional' for 3rd, 4th Packages
Rs. 350 Crore Kickbacks Secured
CM's Total Share- Rs. 573.02 Crore
Business as usual, the AP CM Chandrababu Naidu has
awarded the extension works of Chintalapudi Lift
Irrigation Scheme to his favoured contractors. While
Navayuga bagged the contract of the 4th package worth
Rs. 1,608 crore by quoting 4.49% excess (i.e. Rs. 1,678.75
crore), Megha Engineering got the 3rd package worth Rs.
652 crore by quoting 4.40 % excess at Rs. 681.27 crore. Chintalapudi canal
The officials who requested anonymity told that that is left half-done.
these contracts could have been awarded at 5% lower to
the EPV, had the Chief Minister not formed the ring and
rigged the tender bidding process. This means an
additional burden of Rs. 223.02 crore on the state total, he had made Rs. 573.02 crore out of this project.
exchequer. Needless to say, this amount will directly go
the Chief Minister as kickback. What else? This is
Saga of Exploitation
additional to Rs. 350 crore that was already pocketed by The extension works of Chintalapudi Lift Irrigation
Chandrababu Naidu while commencing the Scheme were initially taken up at the cost of Rs. 2,488
Chintalapudi Lift Irrigation Scheme extension works. In crore. Chandrababu Naidu- without considering the

36 Emperor of Corruption
objections of the Finance
Department- has taken out a As Per the Plan…
portion of work worth Rs. 228 Then the Water Resources Department had issued the tender
crore and gifted it to a coterie notification on June 2, 2017. As the CM formed the ring with two
contractor. He divided the companies, only those two companies have participated in the tender
remaining Rs. 2,260 crore works process. According to the schedule, the technical bid was opened on June
into two packages. He colluded 22, 2017, and the financial bid was opened on July 1, 2017. For the 3rd
with Navayuga and Megha and a package works, while Navayuga quoted 4.8 % excess, Megha quoted 4.40%
decision was made to hand over excess. For 4th package works, Megha quoted 4.77 % excess and Navayuga
these contracts to these quoted 4.49% excess. The Megha and Navayuga, which were L1 for the 3rd
companies. and 4th packages respectively, have bagged the tenders.

Rs. 400 Crore


Uravakonda CLDI Inflated
Estimated Cost of the Uravakonda CLDI - Rs. 805.77 Crore
Half of it Had Gone for Commission
The Uravakonda Community Lift-cum-Drip
Irrigation (CLDI) has reportedly been a massive case
of corruption. A favoured contractor was awarded
the contract at an excess quote of 4.57%. The Water
Resources Department officials confirm that huge
kickbacks changed hands during the awarding of
these works.

Rs. 36.82 Crore of Additional Handri-Neeva officials issued a tender notification on


December 22, giving the project works on an EPC-
Burden on Exchequer Turnkey basis at an estimated cost of Rs. 805.77 crore
Jeedipally Reservoir is located in Uravakonda with a deadline of 18 months. As per the rules, the
constituency of Anantapur district. The government, works had to be split into four packages and tenders
on September 5, 2017, sanctioned Rs. 899.20 crore for must have been called for accordingly.
Uravakonda CLDI project. With this project, the However, due to pressure from TDP leaders,
government wanted to irrigate 20,201 hectares by tenders were called for only one package and the
lifting 1.69 TMC water from the Penna Ahobilam technical bids were opened on 16 March, 2018. MEIL,
Reservoir and Midpennar Reservoir. NCC, HES submitted their bids. The financial bids were
Even before the tender notification was issued, the opened on March 2. The MEIL with 4.57% excess
Chief Minister came to an understanding with the quote, NCC with 4.78% excess quote and the HES with
contractor in question and tweaked rules to ensure 4.89% excess quote stood as L-1, L-2 and L-3.
the successful award of the contract to the Later, the Handri-Neeva officials forwarded the
handpicked contractor. With the tweaked rules, the proposals to Commissionerate of Tenders (COT) on

Emperor of Corruption 37
April 30, 2018 recomending MEIL (L-1) as the contract crore as the works were given to a single bidder at an
winner. Had the works been split into four packages, excess quote of 4.57%. As it is, the estimated cost of
there would have been a lot of competition among this project was hiked at the very beginning of the
contractors to complete the works and they would project. It is being said that the CM and Water
have been completed at a lower cost. Besides that, the Resources Minister were recipients of huge kickbacks
exchequer was burdened to an extent of Rs. 36.82 in this scam.

Rs. 352.68 Crore


Totapalli Project Costs Shot Up
Initial Estimation Rs. 774.90 Crore
Increased Estimation Rs. 1,127.58 Crore
Chandrababu Naidu has almost doubled the
estimated cost of Totapalli project from Rs. 774.90
crore to Rs. 1,127.58 crore, a 45.51 percent hike. This
hike came at the fag end of the project; which
effectively means the cost was increased to benefit
the contractors.
Totapalli Regulator was built by the British on
River Nagavali in 1908. It has been showing the
signs of the wear and tear. The state government
took up a project to build a 2.509 TMC-capacity
reservoir 500 meters up from the present
construction and supply water for 1.20 lakh acres
through a canal of 117.89 km length. This
Accelerated Irrigation Benefit Programme (AIBP)
was commenced by late Dr. Y.S. Rajasekhara Reddy.
The initial estimated cost of this project was Rs.
450.23 crore and 85 percent works were completed with the additional fund based on the inflation and the
by 2009. Later, in 2012, the government has increased it proportion of completed work. The Chief Minister- who
to Rs. 774.90 crore. By 2014, 90 percent of the project should have insisted on getting the remaining fraction of
works were completed. the work done- readily ceded to their request and
Chandrababu Naidu, true to his form, has failed to pressurized the officials for making the additional
complete the remaining 5 percent works, but, made a payments.
lofty claim of completing the project and 'dedicated' it to Under the strain, the Water Resources Department
the nation on September 10, 2015. Presently, the project officials have accepted to release additional funds, as per
is able to irrigate about 1 lakh acres because of the works the GO: 22 and GO: 63. To that effect, the estimated cost
that were done by the previous government. Completing was revised to Rs. 1,127.58 crore. The state government
the remaining works would help irrigate the remaining has accepted the proposal of the department. That
20,000 acres. However, so far, the TDP government could means that the government has paid Rs. 352.68 crore to
not achieve even this little. the contractors for the work that they have already done.
The contractors- out of the natural desire for higher A huge amount of these funds have changed hands and
profits- have requested the government to provide them undoubtedly the CM has had his cut.

38 Emperor of Corruption
Rs. 320 Crore
Four-fold Plunder in Mid Pennar
Estimated Cost Rs. 101.61 Crore
Escalated Cost Rs. 421.87 Crore
Kickbacks Rs. 320 Crore
Two MPs of Telugu Desam Party- J.C. Diwakar into the scene and get the tender bids of those
Reddy and C.M. Ramesh- had clashed over their companies disqualified by pressurizing the
share in the commissions of Mid Pennar South officials of the High-Level Committee (HLC). He
Canal modernization works. True to his form, the instructed the HCL officials not only to disqualify
Chief Minister has settled their differences and these companies from the present bidding but
pocketed Rs. 320.06 crore. For this, he has hiked also blacklist them so that they wouldn't be able
the estimated cost of the balance works from Rs. to participate in future tenders.
101.61 crore to Rs. 421 crore. He then awarded
Rules to Rob
the contract to one of his preferred contractors.
To ensure the smooth handover of the The tender notification was issued on
contract, Chandrababu Naidu got the rules February 3, 2107. However, the 'issues' with the
framed in such a way that only two of his seven companies and the clashes of the ruling
favoured companies would qualify for the tender. party MPs have delayed the finalization of the
However, unexpectedly seven other companies technical bid and as a result, the tender deadline
also have competed with the favoured was extended thrice. After all the disputes were
companies. They refused to back off from the settled, the technical bid was opened on March
bidding despite warnings from J.C. Diwakar 30, 2017, and the contract had gone to
Reddy. Nagarjuna Construction Company, which is a
This has prompted the 'furious CM' to enter company that toes to the CM's line.

Emperor of Corruption 39
Rs. 200 Crore
C.M. Ramesh Gets Bonanza
Estimated Cost Rs. 570 Crore Inflated to Rs. 720.26 Crore
Finance Department Highlighted the Gross Irregularities
in Tender Process in Second Tunnel of Veligonda
A Key TDP Leader Siphons off Crores Through
Commissions According to a Pre-Meditated Plan

As per GO: 94 in March, 2018,


Shashi Bhushan Kumar,
Secretary, waterworks
department, called for tenders.

The finance ministry clearly


stated in its directive that the
regulations would not be bent
to favour any single contractor.
Succumbing to the pressure C.M. Ramesh's firm. This was a clear
from the Chief Minister Chandra- violation of GO 94.
babu Naidu, the estimated costs of HCC-CPPL (JV) had bagged the
the second tunnel work of contract of the second tunnel work
Veligonda project were hiked from in 2007 for Rs 735.21 crore.
Rs. 570 crore to Rs. 720.26 crore. The However, the work which should
CM had already decided to allot the have been completed by 2012
work to one of his beloved cronies' remained incomplete till 2015. The
firm, Rithwik Projects of MP C.M. Ra- contractors were asked to complete
mesh. The finance department flag- the job by December 2016 after
Special conditions in violation
ged the irregularities in the tender sanctioning Rs 17.29 crore
of GO:94 in favour of CM
bidding process of the project, additional funds for the work. This
Ramesh's firm.
which had drawn up rules to favour was also done in violation of rules.

40 Emperor of Corruption
Still, the work was not completed by the end of 2016. contractor. The Department clearly stated that rules
As the initial contractor had failed to complete the should not be drawn to favour a certain contractor
works within the deadline, the government removed or/and against another. The GO No: 94 had put the Chief
him under clause 60 (C) and took up the remaining Minister in a bind and he was asked to adhere to it while
work- between 10.750 km and 18.787 km. The Internal issuing tender notifications.
Benchmark Committee set the value of these works at The Principal Secretary of Water Resources
Rs. 299.48 crore. But, owing to pressure from the Chief Department, Shashi Bhushan Kumar, issued orders to
Minister, the estimated costs of balance works were chief engineers on March 09, stating that GO: 94 should
hiked to Rs. 720.26 crore. The Chief Minister had decided be complied with. However, the Principal Secretary did
in the very beginning that the works should be given to not take any action against the project CE and SE, who
his aide C.M. Ramesh. On May 08, 2018 the tender issued the tender notification. Instead, he just had
notification was issued with the revised value of Rs. forwarded the twisted tender notice that favoured
570.58 crore. Rithwik Projects. By doing so, he violated his own
However, at this stage, the Finance Department orders, due to the pressure from the CM. Finally, Rithwik
flagged the irregularities in the Veligonda project and Projects secured the second tunnel work at 4.65%
faulted the government for issuing a tender notification excess quote.
in violation of GO No: 94 to favour a particular

Rs. 100 Crore


Scam Involving Chief Minister in Telugu Ganga
Preliminary Estimate of Telugu Ganga is Rs.180.48 Crore
Enhanced Estimated Costs are Rs. 280.27 Crore

CM and his cabinet are making


the most of the irrigation projects.
On March 9, 2018, the Chandra-
babu Naidu increased the estim-
ated cost of the Telugu Ganga
project from Rs.172.99 crore to Rs.
180.48 crore. Within three months,
on June 8, 2018, the cost
estimates were further increased
to Rs. 280.27 crore. That means
the government has increased the
estimated cost by Rs.99.79 crore
within three months. Evidently,
Rs.100 crore had changed hands
in this transaction.
Deceptive Estimates
The AP government issued

Emperor of Corruption 41
orders estimating the cost of the Telugu Chief Minister's Orders
Ganga project at Rs. 4,460.64 crore on March
The Water Resources Department officials had
20, 2007. About 95 percent of the works were
given in to the pressure of the Chief Minister and
completed by March 2018. Though the
increased the project estimated cost to Rs. 280.27
balance works were only 5 percent, the
crore. The Chief Minister further ordered that the
Chandrababu Naidu government has
tender notification should be issued to favour one of
increased the estimated cost to Rs.6,671.62
his cronies, C.M. Ramesh, a TDP Rajya Sabha member.
crore! Orders were issued to this effect on
Officials issued orders accordingly on July 16, 2018,
March 9, 2018. The CM wanted to take
with the revised estimated the cost at Rs. 239.03
advantage of the hiked estimated cost and
crore. An open tender notification was issued with
distributed contracts among his party
the deadline of 18 months.
leaders. The government has decided to take
up lining work of Telugu Ganga main canal Facilitating Work to TDP MP
up to 18.20 km, incomplete lining work
between 18.20 km to 42.566 km and the Generally, for the lining work of canals, only
lining work of link channel between experienced contractors who can use Pavers are
Banacherla Cross Regulator and Velugodu considered eligible to bid. However, in this case,
balancing reservoir, until 7.380 km. These tender rules were changed saying that along with
works should cost not more than Rs.172.99 Pavers, the short creating technique should be used.
crore as per the estimates of 2007. However, This rule was included in the tender as Rithwik
as per the new order in March 2018, these Projects of C.M. Ramesh had experience in this
works were valued at Rs.180.48 crore. method.

The only tenders that had to be re- work remained to be done.


done were related to the lining work up Engineering experts say that
Rs. to 18.20 km of Telugu Ganga Main Canal. estimated costs cannot go beyond Rs.7
In the lining work between 18.200 km crore per km. The government's
12.16 and 42.566 of the Main Canal, only 800 estimated costs, however, show that the
to 900 meters long lining work was left. per kilometre cost was Rs.12.16 crore!
Crore Besides this, another 650 Meters of work The government further decided to pay
per KM! in BCR channel remained to be
completed. If this were to be taken into
the contractor an additional amount of
Rs.36.29 crore towards labour cess, GST
account, only 19.650 km-long lining and other charges!

42 Emperor of Corruption
Rs. 78.82 Crore
Kickbacks to Minister and Contractors in Handri-Neeva

Estimated Costs Hiked from Rs.17.10 Crore to Rs. 95.20 Crore


Bowing to Pressure, Water Resources Department Released Funds
Overruling the Finance Department's Objections
Irregularities abound in Handri-Neeva Sujala Sravanthi
(HNSS) project. The estimated project cost of the balance
works in eight packages of HNSS was hiked from Rs.17.10
Rs.6.63 Crore
crore to Rs. 95.92 crore and then the work was awarded to Additional Payment for
Rithwik Projects. The Water Resources Department actively
approved the cost hiking process and expressed its Nominated Works
willingness to pay the jacked up bills; for the sake of
kickbacks. The Water Resources Minister Devineni In phase two of HNSS project,
Umamaheswara Rao distributed the Rs. 78.82 crore- which the work of 59th package (digging
he got in the project- among the contractors. Here are the in Punganuru branch canal from
full details. 150 km to 173 km) was initially
In the second phase of the HNSS project, the contractors awarded to APR Constructions. But,
of packages 21, 22, 27, 28, 29, 62, 63 and 64 were removed the company was removed by using
under Clause 60-C by Chandrababu Naidu. The total value of Clause 60 (C) as it had refused to
works in these eight packages was Rs. 521.39 crore and of cough up the kickbacks. The
this, work worth Rs. 504.29 crore had already been balance work of 2.8 km tunnel
completed. Only Rs. 17.10 crore worth work left. digging was assigned to Rithwik
As per the EPC norms, if any estimated cost is inflated to Projects, a company owned by TDP
more than five times the original estimate, government MP C.M. Ramesh after hiking the
approval for such an enhancement is mandatory and estimated costs to Rs. 69.91 crore.
binding. However, in this case, the estimated costs of the That too, the contract was awarded
balance works in the eight packages were hiked from on nomination basis. Rithwik
Rs.17.10 crore to a staggering Rs.95.92 crore. In each Projects has pocketed another Rs.
package, the estimated costs rose sharply by 22% and yet 6.63 crore by submitting a proposal
government approval was not obtained. stating that for the job undertaken
On April 4, 2015, a few favoured contractors chose by the it had used a Jumbo Jack Hammer
TDP government were handed over the works. Contractors instead of a Boomer. The
who had completed their work sought payment, but the government gave its approval to
Finance Department said that the funds could not be
this dubious proposal and released
released without specific government approval as mandated.
Rs. 6.63 crore to the company
However, the Water Resources Minister Devineni
owned by Chandrababu Naidu's
Umameswara Rao exerted pressure on the officials and
close associate.
ensured that the Water Resources Department gave its
approval to the bills for payment.

Emperor of Corruption 43
Rs. 43.97 Crore
Pogonda Scam
Poganda Reservoir has become a major
source of corruption for the ruling Telugu
Desam Party (TDP). The Pogonda Reservoir
is being built near Chintalagudem village
of Buttaigudem mandal, West Godavari
district. This project was initially envisaged
and commenced by late Dr. Y.S. Rajasekhara
Reddy in 2007. A reservoir with a capacity
of 2,27,738 million cubic feet was to be
constructed over the Bineru river near
Chintalagudem. The project work was
assigned to a contractor with an estimated
cost of Rs. 18.20 crore. The reservoir was to
irrigate 4,000 acres on completion. Dr. YSR
had proposed that funds should be
assigned under the ST Sub Plan.
The Chief Engineers' Committee,
However, the designs of the reservoir were modified following the
which has scrutinized the
suggestions from the Chief Engineer of Geological Survey of India (GSI)
proposal, refused to accept the
and the committee of Central Designs Organisation (CDO). These
proposal and backed the view of
modifications were made because Bineru river floods during the rainy
the SLSC. It suggested that a
season would have strong currents. The new designs have augmented
decision could be taken on
the estimated costs to Rs 85.51 crore. Accordingly, a GO was issued on
additional funds once consider-
January 1, 2014. This project can start supplying water if the construction
ing the applicability of GO: 22
of distributaries is completed. However, the Water Resources Minister D.
since the contract date was
Umamaheswara Rao has refused to complete this tiny work. He has done
already over. However, owing to
so with the plan to pocket ST Sub Plan funds. Here are the details.
pressure from the minister, this
In the Guise of Contractor report was deliberately misinter-
Soon after assuming office, the Water Resources Minister eyed preted by the officials of the
Pogonda Reservoir and entered into a secret deal with the existing water resources department. The
contractor. According to the plan, the contractor submitted a proposal on minor irrigation engineer
18 January 2016, requesting additional funds to complete the project. In forwarded a proposal to the
the proposal, the contractor stated that he was given the works based on government on August 1, 2017,
2011-12 estimations and had to spend an additional amount of Rs. 43.97 recommending the release of a
crore due to the design changes and ever escalating inflation. total of Rs. 43.97 crore additional
The Water Resources Minister has immediately approved the proposal funds- Rs. 30.87 crore for
and pressurised the officials to release the funds from the ST Sub Plan. additional work and Rs. 13.10
The state-level standing committee (SLSC) turned down the proposal crore under GO: 22. The
stating that the estimated costs were revised in 2014 following the design government has approved the
changes. An angry minister sent back the same proposals to the SLSC and proposal on November 30 and as
brought the Chief Minister into the picture. This has changed everything. the result, the minister lined his
The SLSC finally caved in and forwarded the proposal to the chief pockets with these additional
engineer's committee. funds.

44 Emperor of Corruption
Rs. 38.98 Crore
Minister's Relative
First Among Contractors
Polavaram Left Canal Works Awarded on Nomination Basis
Agreed for Rs. 142.88 Crore, paid Rs. 181.86 Crore
Rs. 38.98 Crore Pocketed
The state government has
gifted Rs. 38.98 crore to Putta
Sudhakar Yadav, TTD
Chairman and a close relative
of the state Finance Minister
Yanamala Ramakrishnudu. It
has awarded the 5th package
works of Polavaram Left Canal
worth Rs. 142.88 crore to HES-
PSK, a joint venture belongs
to Mr. Sudhakar Yadhav on
nomination basis on
November 30, 2016.
The Chandrababu Naidu
government has gone against
its own laws to award this
contract. However, the worst
was not over yet. Though HES-
PSK had agreed to complete
the works within the given
budget, the government paid nomination basis.
another Rs. 38.98 crore without any reason. During this This effort of the minister- to award Rs. 142.88 crore
process, it did not care for the objections raised by the worth work to an inexperienced company- was resisted
State-Level Standing Committee (SLSC) and Internal by SLSC and IBM. However, these objections hardly
Benchmark Committee (IBM). made any difference. The government has issued a GO
on awarding the contract to HEC-PSK on November 30,
Inexperience Valued
2016. Though the company has agreed in writing that it
Indeed, PSK has never worked on the irrigation would complete the work within the budget, it later
projects. However, it could form a joint venture with HES sought Rs. 38.98 crore additional funds to complete the
Infra. Then they have ensured the removal of the work. Yanamala followed up this file and ensured the
existing contractor for 5th package works of the Left compliance from the officials. The Department officials
Canal. Then pressurized the officials to hand over the have forwarded a proposal to make Rs. 39.98 crore
contract of remaining work in the 5th package i.e. the additional payment, on May 6, 2018.
lining, causeway, concrete works to HES-PSK on

Emperor of Corruption 45
Polavaram Project Undermined
Polavaram Project Authority Report
The Polavaram Project Authority (PPA) penned a over work valued at Rs. 1,243.67 crore relating to spill
scathing report criticising Chandrababu's arbitrary channel and the spillway after obtaining permission
style of functioning and the resultant corruption in the from the PPA. The remaining work valued at Rs.
project. The PPA has submitted the report to Nitin 921.87 crore was assigned again to the same
Gadkari, the Union Minister for Water Resources. contractor. It is also learnt that works relating to
According to the official sources, the report submitted Earth-Cum-Rock Fill Dam (ECRF) and cofferdam were
by PPA highlighted the following points: given to a new contractor without obtaining the
mandatory permissions.
☛ As per the PPA gazette notification issued by the ☛ As per GO 94, issued on July 1, 2013, under EPC
Centre, on 28 May 2014, under Section 9(1), a (engineering procurement and construction)
contractor was to be sacked and a fresh tender was to method, when a work is given on basis of tender, it
be called for, if works were to be cancelled and freshly cannot be given to another contractor on Lump Sum
assigned, the permission of PPA is mandatory. The Open method without cancelling the initial contract.
PPA accordingly wrote to the state government on Contrary to this rule, jobs related to Polavaram Head
September 8, 2015, reminding this clause. However, Works were given on a nomination basis.
the AP government completely ignored the PPA's ☛ Though the works of the Left Canal and Right Canal
objections and went about its business in an arbitrary had been completed, there was no corresponding
manner. progress with respect to work on the reservoir. The
☛ Although the Polavaram Left Canal work, under the state government is neither honest nor committed
6th package, was not being completed by the when to implement the designs. To help the
contractor even after the lapse of four and half years, government in the preparation of designs, a Dam
Chandrababu Naidu government neither penalised Design Review and Preparation Committee was
nor sacked the contractor. In contrast, the contractor constituted. Still, there have been delays in the
who had taken up work under the fifth package was implementation of designs as the government is
sacked and the remaining work assigned to another unresponsive.
firm on nomination basis. Works of 1st, 3rd, 4th, 7th
and 8th packages were given to new contractors on
nomination basis. When this was flagged through a
letter stating that permission was not obtained, there
was no response from the state government.
☛ A tender notification was issued on November 27,
2017, removing the old contractor and without
obtaining due approval from the PPA. The work was
related to the spillway and spill channel in head
works; and the work was valued at Rs. 1,395 crore.
The centre wrote to the AP government on 29
November 2017, directing the cancellation of these
tenders. The state government responded writing
that it would not take any unilateral decisions in this
matter in future.
☛ However, the state government conveniently forgot
the promises it made to the centre and PPA. It handed

46 Emperor of Corruption
Polavaram-Free Lunch!
Rs. 150 Crore Worth Bills Claimed Without Doing Any Work
The AP media reported on March 24, 2018, the soil
work bills of Rs. 150.93 crore were claimed without
doing any such work. These reports were later confirmed
by media reports. The Pay and Accounts (PAO)
Department and Auditing Department have confirmed
that a payment of 112.47 crore was claimed by merely
creating fake records of the soil works that were never
done.
However, the Chief Minister has put tremendous
pressure on the PAO officials to hush up the criminal act
by merely going for the recovery. As a result, Rs. 10.57
crore were exempted from the payments of bills made
to the contractor in question. Rs. 101.89 crore would still
need to be recovered. However, the Chief Minister
blocked the further recovery process and pressurised
the officials to make payments to the contractor.
Realizing that the entire matter could recoil on him, PAO
of Eluru K. Somaiah stated in a communication to the EE Letter reveals irregular payment of
of Project Head Works (Reservoir) on 10th earlier this Rs. 112,47,19,305. PAO flags Recovery of
month, that bills of the contractor in question could not Rs. 10,57,21,084 in Bill 37.
be settled. Here are the details as to how hundreds of
crores public money were looted without doing any contractors and found its way to the Chief Minister.
work.
Soil works related to Polavaram spillway, spill Auditing Department Faults Violations
channel, approach channel, pilot channel and After media reports highlighted the loot in
foundation digging needed to be done at Rs. 10.49 Polavaram soil works, the PPA and Auditor-General had
Crore. After securing the project, the reservoir work was conducted a site inspection. It was revealed that by Rs.
entrusted to sub-contractors. Soil excavation work was 112,47 crore were swindled by claiming payment of soil
entrusted to Triveni Earth Movers, a sub-contractor. In works that were never taken up. A report was submitted
irrigation project related works the estimated cost of a to the AP government recommending recovery of
cubic metre soil work is Rs. 92.60 as per 2015-16 rates. excessive payments and strict action to be taken against
Additional payment would be made in the case of rocky erring officials.
soil.
When AP Chief Minister Chandrababu Naidu made
his 20th visit to the site on October 03, 2017, 7.59 crore Rs.61.66 Crore Loot Prevented
cubic metres had been excavated as per records.
Another 2.96 crore cubic metres were left, the records Even when soil works were not needed in
stated. In reality, however, 5.96 crore cubic metres of soil Polavaram, Rs. 66.59 lakh cubic metre work was
work had been completed. Even though 1.63 crore cubic added.Though no work was done, the Chief
metres of soil work had not been completed, it was Minister prepared the ground to swindle Rs. 61.66
shown as having been done, due to pressure from the crore, but the report of the PPA and Auditor-General
Chief Minister. Rs. 150.93 crore was additionally paid to put a stop to this loot.

Emperor of Corruption 47
Endless Corruption in Polavaram
CAG Censures Chandrababu Government
The Comptroller and Auditor General of India (CAG) contractors. This was one more gross violation of rules.
heavily come down on the corruption in the works of
Spate of Irregularities in Canals
Polavaram project. It pointed out that Chandrababu
Naidu government showered its largesse on the A host of irregularities have taken place in the works
headworks contractor, but failed to secure any progress of the Left and Right canals of Polavaram. Without the
in the work. The central auditing body took a strong permission of Polavaram Project Authority (PPA), the
exception for not establishing a dedicated department estimated costs of these works were jacked up to Rs.
for quality assessment and control until the state 8,021 crore. The government has issued orders to this
government entered into an agreement in July 2017 with effect on December 6, 2016. Despite the execution delays
the Central Soil and Material Research Station (CSMRS). and too many rule violations, Chandrababu Naidu has
refused to penalise the contractor. Instead, the
Reward Instead of Penalty! government went out of its way to be generous to him
The expert committees of both the centre and the and hiked up the estimated costs. It is pertinent to point
state government emphatically stated that Transtroy (JV), out that instead of the contractor the government bore
a firm owned by TDP MP RayapatiSamabasiva Rao, did the expenditure at a cost of Rs. 38.12 crore for transport
not have the expertise and skill set to undertake the of pipelines and electricity poles in the canal works.
Polavaram Head Works contract. As it was predicted,
there was no progress in the works of headworks till 2016 Irregularities in Land
September. The government which was supposed to Acquisition and Resettlement
penalise the contractor for execution delays did exactly As per the guidelines of Central Water Board, the DPR of an
the opposite. The CAG faulted the Chandrababu irrigation project has to be prepared with the assistance of
government for increasing the estimated costs of the the National Remote Sensing Agency (NRSA). For Polavaram,
headworks to Rs. 1331.91 crore on September 8, 2016, however, it was done on the basis of Geological Survey of
which was two long years before the contract deadline to India (GSI) pictures. Initially, the government stated that
benefit the contractor, in an unprecedented manner. 54,448.69 acres land would be submerged and 44,574
families would be dislocated. However, these calculations
Government Funds to Dumping Yard Too altered all of the sudden. According to the recent estimate,
As the government has increased the estimated cost, the submerged land would be 1,03,585.21 acres and the
it was supposed to collect Rs. 66.59 crore in lieu of number of displaced families would be 1,05,601. This massive
performance security from the contractor. However, the increase of the numbers has baffled the people. The state
government gave him an exemption instead. Violating government so far did not the accounts for Rs. 1,407.64 crore-
rules, it has bought the steel worth Rs. 25.37 crore and which was spent on the land acquisition and resettlement- to
supplied it to the contractor. Moreover, the government, the PPA. Here are some of the questions raised by CAG.
☛ The PPA which was established to complete the
instead of the contractor,has paid import duty of Rs. 5.72
Polavaram project expeditiously under the State
crore on the equipment imported by the contractor
Reorganisation Act. What is the reason behind the state
despite no such obligation.
government's reluctance to enter into an agreement
Advances Galore with that organisation?
☛ Instead of penalising the contractor, the state
The government first gave the contractor Rs. 404.86
government jacked up the estimated costs to Rs.
crore mobilisation advance, which had to be collected
1,331.91 crore two years before the project deadline.
along with 11% interest from the 21st bill onwards. Was that doing an undue favour to the contractor?
However, the government kept on postponing the ☛ The accounts of Rs. 1,407.64 crore, which was spent on
recovery. Further, the government gave Rs. 95 crore the land acquisition and resettlement have not been
mobilisation advance again when the diaphragm wall submitted to the PPA so far. What does that indicate in
works worth Rs. 422.20 crore were given to sub- not corruption?

48 Emperor of Corruption
LANDS WERE
GULPED DOWN
Rs. 1,00,000 Crore
Massive Land Scam in Vizag
Records of One Lakh Acres Disappeared!

Government lands which were mortgaged by


ParuchuriBhaskara Rao, a relative of AP HRD Minister
Ganta Srinivasa Rao, in Vemulavalasa of
Visakhapatnam district.

Houses for the weaker sections on the land


of survey no: 122/11, mortgaged by
Clear proof of Bhaskara Rao's mortgage of the ParuchuriBhaskara Rao in a bank.
government lands and land of others belonging
to survey nos: 122/9, 10, 11, 12.

"Records of one lakh acres have gone missing due these strong winds?
to Cyclone Hudhud." - Statement of Vizag district Indeed, this mysterious disappearance of the
collector on May 30, 2017. records points to a massive scam involving more than
When Cyclone Hudhud affected Vizag city in one lakh acres land in Visakhapatnam district. It is
October 2014, no government official ever quite clear that the ruling party leaders used Cyclone
mentioned about land records gone missing, but Hudhud to cover their tracks. In Visakhapatnam
after three years, we can see them making strange district, the value of an acre land is around Rs. 25
statements about the 'missing land records'. During crore. That makes the value of one lakh acres of land
the Hudhud, there were only strong currents of wind encroached upon by the ruling party leaders would
and there were no floods. How come the land records be more than Rs. 1 lakh crore!
from a few government offices got blown away by Thanks to the increased media coverage of the

50 Emperor of Corruption
Vizag land scam and the widespread discussion
Farmers' Lands
among people, the CM became desperate and took a
few damage-control measures. However, it would not Grabbed by TDP Leaders
have been possible for the ministers or government
Village No. of Acres
officials to tamper with revenue records at such a
Sowbhagyapuram (Pendurti mandal) 120
massive scale without the active backing of the Chief
Minister. Darbhandha (Anandapuram mandal) 114
Incidentally, during the Hudhud, the Chief Kommadi (Vizag Rural mandal) 116
Minister took over the power of RDOs from the NerellaValasa (Bheemili mandal) 114
Revenue Minister and stayed in Vizag city during the Gadigundam (Anandavaram mandal) 69
cyclone. Now, the district collector stating that the
records tampered during the Hudhud time clearly Land Records Claimed to
indicates the role of the Chief Minister in the Vizag
land scam. A scandal of this scale clearly points to the have Gone Missing in Hudhud
role of the CM and not just that of the ministers and
Mandal No. of Acres
administrators.
Because of his role, the CM forced a compromise Bheemili 4,500
upon two warring ministers, Ganta Srinivasa Rao, who Pendurthi 3,500
has the most active role in the scam, and Ch. Anakapalli 6,500
AyyannaPathrudu, who was exposing the land scam
Yalamanchili 4,000
due to his rivalry to Srinivasa Rao. The Chief Minister
has also tried to divert the public attention by Vizag city 300
appointing a three-member Special Investigation
Team (SIT), which simply was a waste of time and a and so far they could take possession of more than
drain on the exchequer. Despite the SIT submitting its one lakh acres. The government officials who were
report in August 2018, the state government just sat supposed to protect the ordinary citizens worked
on it and did not initiate any actions based on the hand in glove with the ruling party in this act of
report. All these developments indicate the active betrayal. From Secretariat official to a panchayat
role of the CM in the massive Vizag land scam. secretary, everyone was a part of this sinister plot. A
Precisely because of this reason, the Chief Minister host of officials, police officers at various levels,
has refused to hand over the case to Central Bureau of ministers, MLAs, ruling party leaders-all of them have
Investigation (CBI) and also attempted to play it down come together to form a mafia and have tarnished
by limiting the scale of the scam to mere 256 acres. the brand image of the rising city of Vizag.
While the entire state was appalled at the sheer scale The TDP leaders tampered with government
of the scam, the CM has tried to turn the issue into a records extensively and took possession of the lands.
clash between two ministers; this has shocked the Wherever the tampering was not possible, they just
people further. Though the Deputy Chief Minister have grabbed the land with help of other means
announced the setting up of an open inquiry, the CM including the land pooling. Alarmed by the sheer
turned it into an internal matter by appointing a SIT scale of the scandal, the people of Vizag, with the help
with three government officials. This act is nothing of opposition parties, have protested these brazen
but a reflection of the CM's guilt and wily intent. acts. Thanks to their efforts, several land scams have
Visakhapatnam is one of the most beautiful cities surfaced in Bheemili, Anandapuram, Visakhapatnam
in India. But, now, it is known for the massive land Rural and Pendurtimandals.
grab of the TDP leaders. The leaders of the ruling Even in the land pooling, the government has
party have been grabbing land wherever possible, shown its nepotism and it was quite biased towards

Emperor of Corruption 51
GO. 304, which has allowed the government to take assigned
GO. 290 issued on Vizag land pooling. lands from the land owners as part of land pooling.

its party leaders. For the newly proposed Bhogapuram Bhaskara Rao owns only 7 cents of land in this survey
airport, which will replace the present airport in Vizag, number. He doesn't have any land in the other survey
the land pooling was done in the most absurd manner numbers either. However, his writ ran large since the
possible. While the lands of influential people were sub-registrar and tehsildar offices of Bheemili,
exempted from the pooling, the lands of the poor Anandapuram, Visakhapatnam Rural have become
farmers were overtaken forcibly. After acquiring the the dens of corruption since 2014.
land, the government has been allocating it to its
favoured companies with the help of GOs. Disappearance of Land Records
As an increasing number of land scams and
Loans Against Govt. Lands tampered records became public, the district officials
After coming into the power, the ministers and came up with the strange, gone-with-the-Hudhud
MLAs of Vizag district focused completely on the statements. The district collector Praveen Kumar
Revenue Department. They have made sure that claimed that thousands of lands records had gone
pliant RDOs and Tehsildars were appointed in their missing. According to him, 16,735 out of 2,45,896 Field
respective areas. Ganta Srinivasa Rao was very active Measurement Books (FMBs) and 379 out 3,022 RSRs
in getting the revenue officials of his choice appointed have gone missing. Out of 3022 clear village maps, 233
in the district. In the name of his relatives, he has have disappeared. The collector claimed that these
occupied the lands across the district, left, right and records had gone missing during the Hudhud cyclone.
centre. Though some lands were in the name of other While Hudhud struck the Visakhapatnam coast on
farmers, the minister used his influence and got crores October 12, 2014, there were only powerful currents
of rupees bank loans against those lands for his of wind, but there were no floods nor was there any
relatives. inundation. Not a single government record
For instance, ParuchuriBhaskara Rao, a relative of mentioned the inundation or destruction of land
the minister, got a loan from Indian Bank against a records in tehsildar offices. If nothing had happened
government land. He has mortgaged 726 sq. yards to buildings, how come the records stored in those
land of survey no: 122-11, 4.33 acres of survey very buildings have gone missing? That too, only the
numbers: 122-8, 9, 10, 11, 12, 13, 14, 15, and 0.271 records from select buildings have gone missing. The
acres land of survey no: 124-1, 2, 3, 4; all of which are officials have started making statements about missed
located in Vemulavalasa village of records only after the appearance of a series of news
Anandapurammandal. In these lands, the government reports in the media about the massive land scam. The
has pooled 59 cents from the survey no: 122-9. timing of the statements was also truly intriguing.

52 Emperor of Corruption
The white paper of the state government on the status of
Waqf lands in different districts of the state.

Land Pooling - A Handy Official bought a huge number of D-patta and assigned lands.
They could buy these lands at the cheapest possible
Weapon rates by frightening the land-owners that their lands
In Andhra Pradesh history, no other party has used would be taken by the government as part of
the land pooling method at this proportion to imminent land pooling and they would get only Rs. 2
pressurise the ordinary farmers to give up their lands. lakh per acre compensation. Once purchases were
In Visakhapatnam district, land pooling was used in an done, the government came out with GO no: 304,
oppressive manner to take the lands of the people. In which was in favour of the new owners.
this instance, the drama of land pooling has started as It was only when the people got the exact picture.
the TDP leaders eyed 120 acres in Sowbhagya Puram, Now, the farmers of those areas are fighting for the
114 acres in Dharbanda village of return of their lands. Meanwhile, the Visakhapatnam
Anandapurammandal, 116 acres in Kommadi of Urban Development Authority (VUDA) issued the land
Visakhapatnam Rural mandal, 114 acres in pooling notification and completed further
Nerellavalasa village of the Bhemmilimandal and 69 formalities. The VUDA in its board decisions made it
acres of Gadigundam village of Anandapurammandal. clear that it had received proposals from the CMO and
Then, some of the TDP cadres had filed decisions were taken based on the CMO proposals.
applications to the government expressing their The government then issued GO 290 confirming the
willingness to hand over their lands to the VUDA decisions. Thus, the pooling was used to fool
government. These farmers met Chandrababu Naidu's the farmers of Vizag district.
son Lokesh and told him that they were ready to
surrender their lands for the pooling and requested Waqf Lands Grabbed
him to issue a GO. All this has happened as part of the The TDP leaders have indulged in land-grabbing of
sinister plan. In the interim period- between the waqf lands on a big scale. Incidentally, most of these
request and issuance of the GO, the TDP leaders have waqf lands happen to be in the constituency of Ganta

Emperor of Corruption 53
16,735 FMBs Demanded Probe Lawmakers and
Gone Missing Six Months Ago Leaders Robbing Land
In Vizag district, I had warned In Visakhapatnam district,
the land records people about the the land grabbing has been
of 379 villages TDP land scams six going on unfettered. It has
have gone missing. According months ago. I the full support of the elected
to our records, there should demanded in the representatives and
be 2,45,896 FMBs. However, Assembly that an politicians. The people of
only 2,29,161 FMBs are Inquiry by a sitting judge be Vizag are ready to kick the
available now and 16,735 instituted. Had the government land grabbers out of the
FMBs have gone missing. ordered a probe then itself, the district. I speak
(According to the collector, situation wouldn't have come this the truth
these missing FMBs contain far. The state government junked without any fear
the records of 1 lakh acres.) the open inquiry and appointed a and I am ready
- Praveen Kumar, government team to probe the to even forego
Vizag District Collector scam. With such a team my position.
investigating the scandal, there - Ch. AyyannaPatrudu, R&B
can be no hope for justice. Minister
- Vishnu Kumar Raju, BJL

Srinivasa Rao, which seems to be no coincidence. The In 2015, they got the insider information about the
records of 2.36 acres of prime land located adjacent to land pooling plans of VUDA. Before the decision was
Bheemili national highway and 15 acres in Kasimkota, formally announced, TDP leaders, such as MLA
Pedagantyada and Gajuwaka areas have been Bandaru Satyanarayana Murthy, have made their
tampered with. In Devada village of Pedagantyada- moves. They conned the farmers with a sustained
mandal, Waqf board had 5,307 acres; of which about propaganda that they were going to lose their lands in
1,993 acres land is no more with the board. In the imminent land pooling and they would get a
Bayyavaram of Kasimkotamandal, 222 out 262 acres, compensation mere Rs. 2 lakh per acre.
in Bheemili of Bheemunipatnam 27.29 out 30 acres, six The ruling party thugs have enticed the petrified
acres in Sitapuram, 2.84 acres in S. Rayavaram, 8.62 farmers with the 'offer' of Rs. 10 lakh per acre.
acres in Seethampeta and 2.35 acres of Yalamanchili Confused and caught in a bind, the farmers took Rs. 1
were encroached upon. While the government lakh to Rs. 2 lakh advances and transferred their
departments have encroached upon 2,072 acres, the entitlement rights to the ruling party leaders. About
TDP has grabbed another 2,226 acres. 320 farmers sold 500 acres for a mere Rs. 10 crore
during this deceptive drive.
Even Assigned Lands Not Spared… Indeed, the rate fixed by VUDA for these lands was
In Mudamaka village of Pendurtimandal, 955 acres Rs. 1 crore per acre. Still, the farmers sold their lands
of assigned land is located in the survey numbers of 1, only for Rs. 10 crore. While the TDP thugs were buying
38 and 76. This land was allotted to 450 farmers 40 the remaining lands, media exposed the fraud with its
years ago by the government of the day, which also series of exclusive stories. The farmers of
gave them the pattas. Since then, the farmers of Govindapuram village were alerted by these stories
Mudamaka and its nearby village Govindapuram have and there was an instant farmers' revolt in the area.
been growing cashew orchards on these lands. Once Despite the resistance from the farmers, the ruling
the TDP came to power in 2014, the ruling party party thugs have removed the cashew orchards of the
leaders started scheming to take over these lands. farmer and laid the roads and took over the lands.

54 Emperor of Corruption
Yellow Mafia
Swallows
of the State

Rs. 58,933 Crore


62,736 Acre land grabbed by
TDP leaders across the state
TDP leaders grabbed 62,736 acres land across the This land grabbing activity does not exclude any
state in the last four and half years. The value of land let it be Temple lands or Graveyards or Lakes,
these lands would be not less than Rs. 58,933 crore and not to speak the assigned lands of Dalits. Lands
as per prevailing market rates. Beginning with the grabbed in this manner were pledged in banks to
party workers and going up as high as the benamis obtain crore of rupees as loans. Additionally, lands
of the chief minister, land grabbing has become the were grabbed in Amaravati new capital region
norm. With the objective of buyout the upcoming through insider trading and in Visakhapatnam by
elections by pumping massive amounts of funds, tampering with records. Here are the details
land grabbing began with the new capital, district-wise land grabbing by the ruling party
Amaravati, has now extended to all districts. leaders.

Emperor of Corruption 55
Land Grbbed by TDP Leaders in
Different Disctricts of the State
District Land (Acres) Value (In Cr.)
Visakhapatnam 10,000 50,000
Chittoor 2,543 4,045
Vizianagaram 1,000 1,500
YSR Kadapa 5,744 856
Anantapur 30,000 750
Kurnool 1,000 500
Prakasam 7,362 228
Guntur 1,600 250
Krishna 60 220
East Godavari 200 200
Nellore 2,738 169
West Godavari 92 115
This is the granite hill illegally occupied by
Srikakulam 397 100 minister Kala Venkatrao's relatives.

1
Srikakulam Minister's Relative Dugs up Granite Hill
Minister Kimidi Kala Venkat Rao's relatives cast their activity that has taken place here.
eyes on a granite hill in Vangara Mandal in Srikakulam Large-scale land acquisition is underway in Kovvada
district next to the Madduvalasa project. When Kala of Etcherla constituency represented by Kala Venkatrao
Venkatrao's sister-in-law Cheepurupalli MLA Mrinalini where a nuclear energy plant is expected to come up.
was the minister, there were serious allegations that a TDP leaders siphoned off compensation to the extent of
close relative of theirs was involved in quarrying. Instead Rs. 9 crore in the name of their proxies.
of carrying out his mining activity at a place near Nearly 100 acres of government land was grabbed
Pattuvarthanam village in Vangaramandal which he had with fake documents. The names of Gorle Vijaykumar,
taken on lease, he started excavating five acres of land Gorle Lakshman Rao and Kalishetty Sahadevudu feature
near Pandavula Konda. prominently in this context. The ground was prepared to
The mining officials seized the quarry following grab government land worth Rs. 5 crore in SM Puram
media reports on the activity in this region. However, the Konda of Etcherla mandal by Srikakulam ZP chairman
place is still in the grip of the Kimidi family. The estimated Chowdary Dhanalaxmi, former TDP district president
value of granite here is said to be close to Rs. 10 crore. Chowdary Babji's son Avinash. TDP leaders also grabbed
When the place was seized there were close to 60 granite 38 acres of lands in minister K. Atchannnaidu's
slabs. However, now only a couple of them remaining. constituency, Tekkali. The land is valued at Rs. 2 crore.
This is a clear indication of the extent of illegal mining

56 Emperor of Corruption
2
East Endless Land Grabbing by TDP Leaders
Godavari
Kakinada City MLA Vanmadi Konda-
babu plotted to grab 47 acres of land
worth Rs. 5 crore located at Survey No.
231 in Thoorangi near Kakinada in the
name of his relatives. The MLA is going
all out to acquire the land which belongs
to Akula Gopaiah educational society
and which had legally acquired the land
through Anakapalli settlement court.
Moreover, he helped his followers
grab another piece of land belonging to
the same society which was located in
Survey No.230/2. A police case was Testimoney for illegal digging of a TDP leader in
booked against MLA Vanamadi's brother Vemagiri village of Kadiyam mandal, East Godavari.
Vanamadi Sathyanarayana and his son,
Muthyalu 16.50 acres Survey No. 33/3,33/4 Sidha
corporator Vanamadi Umashankar for digging up land
Achiyamma 42 acres Seven acres were grabbed by
in Malaxmipuram on a highway built with government
Sidha Muthyalu while Yedla Bethaludu grabbed 8 acres
funds claiming ownership.
in Survey No. 33/1, 31/591 Yedla Srinivasa Rao grabbed
However, with pressure from higher-ups in the
4 acres while Geddam Srikanth illegally grabbed 6-acre
government, the case was watered down. In the case of
land.
three acres of assigned land in Kovvuru road, an acre of
land was grabbed from the beneficiaries by exerting
pressure on them and converted into residential plots
and sold off, it is alleged. 3.73acre land belonging to
Lakshminarasimha Swamy temple at Korukunda in
Rajahmundry rural has also been grabbed by TDP
leaders.
In Vemagiri panchayat of Kadiyam mandal, a TDP
leader started digging 80 cents of government land for
gravel in Survey No. 172 claiming it to be his own.
Ramachandraswamy mutt (Uttaradi Mutt) owns 410
acres of land in P Agraharam of Thondangi mandal in
Tuni constituency. The mutt had leased out the land to
local farmers for cultivation of crops. After bribing
revenue officials, TDP leaders got these farmlands
registered in the names of their family members. About
80-acre land was registered online in the name of TDP
mandal party president, Annavaram temple trustee
Yadla Bethaludu, family members of Vice-president of
TDP department of commerce Sidha Muthyalu.
This land is located in P Agraharam Panchayat in
Survey No. 31,32,33 to 59 of Thondangi mandal. As per
market price, these lands are valued at Rs. 25 crore. The
details are as follows... Government RCC road damaged by MLA
Survey No.33/1, 33/2 Ganga Bhavani, W/O Sidha Vanamadi's family members

Emperor of Corruption 57
3
Vizia Land Bakasuras
nagaram
Land grabbing is rampant in TDP starting with the
TDP president of Vizianagaram down to other party
leaders. These leaders have forcibly occupied land
belonging to the poor, even including Tribal people.
These lands are grabbed apart from all the hills, and fish
Land grabbed by district TDP president
ponds in Poosapatirega, Saluru, Nellimarla, Cheepur-
Mahanti Chinnam Naidu
upalli and Bobbili. They are enjoying the fruits of land
grabbing by converting these lands into gardens and signboards to this effect. In Malyada of Nellimarla man-
orchards. In Survey No.4/3 of Bobbadipeta mandal, a dal, 1.65 acres of government land has been occupied
layout over five acres has been designed in land located illegally by TDP leader Gedhala Sathyam. 24 acres of D
right near Vizianagaram town. This land, which was Patta land in Kollaivalasa of Poosapatirega mandal has
merged into the Vizianagaram municipality is in the been grabbed by Visakhapatnam's Chitti Raju along
jurisdiction of Ward No. 26, where a yard of land is with TDP people's representative. Similarly, 150 acres of
valued at Rs. 10,000 to Rs. 15,000. After grabbing the D Patta land in Pedabathavalasa revenue limits have
land illegally, they are trying to sell these plots after been illegally grabbed by TDP leaders. Eight acres of D
regularisation. It is learned that they have struck a deal patta land belonging to Dalits worth Rs. 4 crore in
with the councillor of the ruling party. They grabbed a Survey No.1 of Uppulapukonda limits have been grab-
lion's share of the land near Erravani canal next to the bed by Valireddy Sriramulu Naidu. Locals say that
layout. Without the permission of revenue and government D Patta lands, where were meant for the
municipal authorities, they are building two approach poor have been grabbed. This grab was done by TDP
roads to the layouts. The local councillor reportedly president Mahanti Chinnam Naidu and the extent of
threatened farmers who protested against this illegal this grab is about 18.50 acres. 20 cents in Survey
activity. Local residents lodged a complaint with the No.12914-P, 15.03 acres in Survey No. 12913, 0.30 cents
grievance cell of the collectorate following which in Survey No. 1303, 3 acres in Survey No. 1236-P in
revenue authorities determined the limits of the layout. Kollaivalasa revenue limits of Poosapathirega mandal
However, the TDP men changed these limits arbitrarily. has been grabbed by Chinnam Naidu. He is growing
A realtor has illegally occupied two acres of Wasteland guava and coconut in the name of his family members
in Varahalagadda of Parvathipuram. It is said that the in these grabbed lands. Since he is the MPP of Poo-
land is valued at Rs. 2 crore. He changed the course of sapetarega mandal, local revenue officials have chosen
the stream and merged the reclaimed land into his real to ignore his land grabbing activities. 40 acres of land
estate project. Similarly, even when ruling party MLC belonging to the village deity have been grabbed by
Dwarapureddy Jagadish forcibly occupied 20 cents of former Saluru MLA Bhanjdev and his brother. This land
land to build his house, officials looked the other way in which belongs to the government and the local village
Varahalagadda of Paravthipuram. The MLC's brother deity has been turned into a fish pond. While RP
Dwarapureddy Rammohan Rao also filled up the canal Bhanjdev submitted an application asking for 15 acres
to half its area with sand and reclaimed the land to grab of land in Survey No.142of Viswanathapuram revenue
it illegally. In the bargain, he reduced the canal to a limits to set up a fish pond, his brother AP Bhanjdev
small stream. Six acres of government land located in also put in an application for ten acres and forty cents
Survey No.383 of Karlam village of Cheepurupalli in the same Survey number for a fish pond. Since 2015,
mandal have been illegally grabbed by the husband of they have been breeding fish for commercial use.
TDP MPTC Kella Ramarao. He is now using cultivating However, revenue web land clearly states that 25
the said land. Government land of 2.65 acres located in acres of land in both Survey numbers belong to the
survey No. 75, next to mandal parishad office in Nelli- state government. AP Bhanjdev is carrying out agricul-
marla is estimated to be worth over Rs. 10 crore. Mansas tural activity in six acres under Survey No.121. It is
Trust, run by former union minister Ashok Gajapathiraju clearly stated that this land belongs to the local village
occupied this land illegally and has even put up deity.

58 Emperor of Corruption
4
Visakha
patnam Visakhapatnam, District of Land Grabbers
After TDP came to power, Visakhapatnam has
turned into the district of land grabbers. Government
land and land assigned to the weaker sections apart
from land allocated for the national highway have all
been grabbed and pledged to banks for crore of
rupees. The government was compelled to appoint a
special investigation team to probe allegations of land
grabbing. However, the findings of the SIT have not
seen the light of the day. Cases have been filed against Land, located at Anandapurammandal under
Tahsildhar BV Rama Rao and Sankar Rao along with Bheemili constituency, pledged in the bank by minister
Inspector of Survey Ganeshwar Rao for helping Ganta Srinivasa Rao's relative Paruchuri Bhaskar Rao.
Anakapalle TDP MLA Peela Govind and his family Ganta Srinivasa Rao's close associate, Kasi
members for tampering with land records. Viswanath bought 50 acres of assigned land, which was
While the MLA and his family members got away meant for SCs in Bheemili for a throwaway price.
scot-free in this land record tampering scam, the others Another associate of Ganta Srinivasa Rao, N Swamy
had to go to jail. Visakhapatnam RDO Venkateswarulu grabbed 3.76 acres in Survey No. 294 and 4.40 acres in
was suspended. Of 312 acres which were owned by Survey No. 294/2 and built sheds there.
freedom fighters and victims of political injustice, 250 In Padmanabhammandal, TDP president Surisetty
acres were assigned to ineligible people using fake Appa Rao grabbed 130 acres of Inaam lands using fake
NOCs. There are allegations that Chief Minister documents.
Chandrababu Naidu's son Nara Lokesh along with a 55 acres of land on the outskirts of Anakapalle was
local minister's son and another minister have drawn converted into non-agricultural land and turned into a
up an elaborate plan to grab 700 acres of land assigned real estate venture. It is rumoured that Anakapalle TDP
to the poor in Pedagoddupalli of Nakkapalli mandal MLA Peela Govind is behind this entire activity.
and Mudapaka of Pendurthi mandal. Litigation has deliberately been created involving
They tried to grab 350 acres of land which had 1.12 acres of land belonging to a disabled person,
pattadar passbooks and title deeds by offering Rs. Chinnarinayudu, located at Sharada Colony in
50,000 as advance. A close relative of minister Ganta Anakapalle mandal. Land worth Rs. 8 crore was
Srinivas Rao, Paruchuri Bhaskar Rao, illegally occupied grabbed for a meagre Rs. 1.50 crore when the victim
20 acres of D Patta land in Krishnapuram of came to seek justice. What is worse is that without
Padmanabham mandal and 11.34 acres of government paying the amount for the transaction, the victim is
land in Anandapuram. being made to run around and being threatened.
5
West West Godavari...No Piece of Land Spared
Godavari
TDP MLAs, ZPTCs, MPTCs, TDP village presidents, Agricultural land measuring 76 cents worth crore of
Sarpanches and even Janma Bhoomi Committee rupees was registered as if a poor Dalit farm worker had
members are resorting to indiscriminate land grabbing purchased it by producing false documents. Cases
in West Godavari district. TDP MLA from Unguturu under SC/ST Act were foisted against farmers who had
GanniVeeranjaneyulu set his sights on Gopinatha- already been cultivating these lands.
patnam lake in Unguturu mandal. This lake was filled up The MLA continues to be in possession of this land
with soil excavated at the time of digging of the although it is in the name of benamis.
Polavaram canal. TDP MLA and government whip Chintamaneni

Emperor of Corruption 59
Prabhakar bought 125 acres of land in the name of
members of a community in Denduluru. Forest land
was also encroached upon in the process.
A lake in Sunkavarithota was grabbed by a
Venkatapuram ward member near Eluru. The huge lake
land was converted into plots and sold.
In Vinayaknnagar of Eluru, a common site was
illegally occupied and buildings constructed and sold
for high profits.
Similarly, vacant lands were occupied by a local
MPTC from NTR colony in Indira colony and Sundaraiah
colony. False certificates were created to sell plots for
Rs. 1 lakh to Rs. 1.50 lakh each. Land grabbed in Gopinathapatnam of Unguturumandal.
Followers of local people representatives forged
documents of revenue wastelands in road Nos. 9, 10 grabbing them. A pre-owned land which was lying
and 11 in Sanivarapupeta Sri Ramnagar and occupied vacant for several years was grabbed by a leader of Jr
them illegally. NTR Fans Association along with Venkatapuram MPTC.
Local TDP leaders divided revenue lands in About 25 acres of government lands near Eluru
Tangellamoodi Beedi colony and Nallagattu areas after have been encroached upon.

6
Krishna Graveyards Disappear in Krishna District

TDP leaders are not even sparing


graveyards in Krishna districts. A
Hindu graveyard spread over 10.84
acres in Survey No.185 is located on
in Gopalnagar near Machilipatnam
bypass road.
There were allegations in the
past that a close associate of the
chief minister and people's represe-
ntative grabbed prime land by the
road and converted it into plots
which he sold for lakh of rupees.
District Collector B. Land located at Singhnagar Vijayawada,
Lakshmikantham ordered a probe registered illegally in TDP MLA Bonda's wife Sujatha's name.
into the matter after it was brought
to light by the media. The matter continued to hang fire needed to be carried out in Upputeru, the government
after the encroachers approached the court to settle stopped the lease of these lands to farmers. However,
the issue. TDP leader Namburi Lachiraju is using these 9 acres of
The current market value of the land is estimated to lands for agriculture. The lands are valued at Rs. 2 crore.
be around Rs 36 crore. Upputeru is the only path to Of the 44.60 acres of land in Survey No. 133 of
Kolleru lake for water to flow from Krishna and West Peddikunta lake in Kodurupadu near Hanuman
Godavari districts into the sea. Junction rural mandal, over 40 acres of land has been
The irrigation officials had in the past leased out encroached upon. Local TDP leader Shaikh Khalifa is
drainage land located in Survey No 42 in Kalidhindi- believed to have grabbed this land, according to locals.
mandal near Uppeteru to farmers. Since dredging work Officials have turned a blind eye as the leader has

60 Emperor of Corruption
the support of ministers and MLAs. Though he has sanctioned to an individual by taking his signatures. He
occupied land reclaimed from the lake illegally and has then got the land owned by the freedom fighter
constructed a building there, the officials are not at all registered in the name of the man using those signed
concerned. papers. Later, the same land was registered in the name of
TDP MLA Bonda Umamaheshwar Rao's wife Sujatha using
Vijayawada Under Bonda's Grip those forged documents. The CID has established that
5.16 acres of land in Vijayawada's Singh Nagar corporator Ganduru Mahesh and Bonda's close associate
belongs to the family of freedom fighter Kesireddy MagantiBabu played a key role in the entire transaction.
Suryanaryana. This land is valued at Rs. 50 crore. TDP The CID also listed MLA Bonda's wife Sujatha as Accused
corporator, Ganduru Mahesh, promised to get a loan No.8 in this land grabbing episode.

7
Guntur Seeing is Encroaching
TDP leaders have been grabbing lands indiscrimi-
nately with the covert support of revenue and police
officials. TDP built its state office in Guntur by grabbing
precious land belonging to the local municipality.
In 1999, the party built its district office. It took 1,000
yards belonging to the local municipality located in
Survey No. 826 next to Pichukulagunta in Arandalpet at
that time on lease. After some time, they grabbed
another 1,637 sq. yards of land in Survey No.12/3
adjacent to it and built a boundary wall. The market
price of this land encroached for TDP office is valued at
Rs. 40 crore. Surendrababu, a close associate of MLA Government land encroached upon in Dindi village in
Anagani Sathya Prasad occupied government land in Nizamapatnammandal of Repalle constituency.
Repalleconsitutency and got it registered as his own
under Form 1-B. The government owns 416.26 acre of encroachment.
land in Survey No.875 spread over Kesanavaripalem, There are widespread allegations that local MLA
Jampanevaripalem, Yaminemnivaripalem, Parishavari- Dhoolipala Narendra had encroached upon 10 acres of
palem, Narravaripalem and Nakshatranagaram villages land which had been allocated to Sangam Dairy in order
under Nizampatnammandal. TDP leaders and workers to encourage the dairy industry. The MLA then passed
got these lands registered in their names. this land on to Dhoolipalla Veeraiah Chowdary
The Tahsildar gave away 15.13 acres of forest lands Memorial Trust.
in Survey No. 583 in Chintalarevu to six TDP partymen. The MLA's close associate Katta Pulaiah Chowdary
After news reports highlighting illegal pattas granted to grabbed 3.89 acres of wasteland in Survey No.274 of
some individuals surfaced on December 3, 2014 Peddakakani and got the GP in the name of three
government machinery jolted into action to do some others.
damage control and announced the scrapping of pattas Officials, though, still remain aloof when it comes to
of forest land wrongly given to these ruling party illegal encroachments by ruling party leaders. Names
members. are being changed in the Adangal (important revenue
Similarly, a contractor built a luxurious house for a record of ownership) and later the followers of the
ruling party leader spread over 25 cents of land owned ruling party leaders fence the area to grab the land with
by the Venugopalaswamy temple in Vaddavalli Raghu- the help of police officials who often threaten the
ramanagar of Sattennapalli. Though the officials were victims who object to this illegal occupation. Even when
well aware of the ownership of the temple lands, they such victims go to court, officials who have to help them
did not make any effort to stop the illegal with authentic records are far too few.

Emperor of Corruption 61
8
Prakasam TDP Leaders Grab Farmers' Lands in Prakasam district
While some TDP leaders are grabbing government
land in Prakasam district, others are encroaching upon
land owned by poor farmers with the covert support of
officials. Later they are getting the land grabbed by
them to be registered in their names. As a result, the
original owners who have lost these lands also lose the
record of ownership and are left high and dry. TDP
leaders encroached upon 118 acres in Vellampalli under
the revenue limits of Narasingapuram in Tripuran-
thakammandal of Yerragondapalem constituency. The
details are as follows... Around 118 acres of land in
Vallempalli limits bearing the survey numbers 110,
11D10, 11D5, 1D7, 11D9, 1CD, 16, 171, 173, 18, 1818,
1853, 1856, 1D2, 211, 2111, 213B, 22, 221, 238, 232, 25, Punnamma showing the registered document
2635, 2642, 264, 3, 301, 3010B, 305, 306, 31, 32, 34, 35,
351, 36, 85. These lands are in the possession of P. minister had exerted a lot of pressure on the district
Laksminarasimharao. 90 acres of these lands were collector at one point. On the orders of the district
registered in the names of 70 farmers of Lellapalli and collector and the RDO, the entire expanse of 118 acres
Vellampalli between the years 1980-1990. From then on, of land was transferred into the name of Ramana Kumari
farmers have been cultivating these lands. A year ago, by Tahsildhar Jaipal online. Later these lands were
Lakshmi Narasimha Rao's daughter-in-law Ramana registered in the name of Sathya company head
Kumari, started doing the rounds of revenue office Veerasathya, who belongs to Peddameeram village in
claiming ownership of these lands and seeking online West Godavari district. The registration was done in
records in her name. At first, revenue officials refused to Vijayawada. Farmers who learnt about this staged a
transfer the ownership of lands owned by farmers into protest in front of the offices of the Tahsildar, RDO and
the name of Ramana Kumari. It was later learnt that an district collector. The Tahsildar told the protesting
important TDP leader bought the entire chunk of land farmers that he was forced to do the registration online
for Rs. 50 lakh. That was enough to get these lands under extreme pressure from district collector and RDO.
registered in the name of the TDP leader, and he first It is learned that the company under whose name the
used Ramana Kumari as his proxy. With the land was registered is a proxy entity of a TDP minister. At
Tripuranthakam revenue officials refusing to oblige, he the same time, the company under whose name it is
got the revenue minister's secretariat to call up the registered is in the process of getting the online records
district collector and RDO. It is learned that the revenue changed.

9
Nellore Land Irregularities in Nellore
Land belonging to water resources department has are indulging in land grabbing.
been grabbed left, right and centre by TDP party Kovuru TDP MLA Polamreddy Srinivasulu Reddy
members in Nellore city and across Sri Potti Sriramulu readied documents to get 21 acres of government land
Nellore district. While MLAs and MLCs grabbed land registered in the names of his father and aunt. The
and created fake ownership documents in some places, current price of this land is said to be in crore.
elsewhere in the district, close associates of ministers There are 200 acres of government restricted lands

62 Emperor of Corruption
near Paiderukatta of Kodavaluru mandal, Kammapalem
panchayat in Bodduvaripalem of Kovuru constituency.
20.76 acres of this has been encroached upon. The
lands in the following survey numbers have been
grabbed. 1.51 acres in survey No. 664-2A, .500 acres in
survey No. 658-2A, 7 acres in survey No. 651-1, 1.55
acres in survey No. 656-1A, 0.40 cents in survey No. 664-
2B, 0.93 acres in Survey No 656-1B, 1.90 acres in Survey
No 664-1, 2.07 acres in Survey No. 657-2, 2.13 acres in
Survey No 656-3, 2.57 acres in Survey No 656-2 These The restricted government land grabbed
lands were grabbed by none other than Kovuru MLA by Polamreddy in the name of his father
Polamareddy Srinivasula Reddy's father Polamreddy and mother-in-law.
Venkureddy and mother-in-law Kotam Reddy Padma-
vathi. 1.51 acres in survey No. 664-2A, .500 acres in was also issued. YSRCP leader Nallapareddy Prasanna
survey No. 658-2A, 7 acres in survey No. 651-1 and 1.55 Kumar Reddy has been waging a legal battle against
acres in survey No. 656-1A have been registered in the this irregularity. TDP MLC BeedaRavichandra's brother is
name of Polamreddy SrinivasulaReddy's father Venku carrying out aquaculture after grabbing 30 acres of
Reddy in revenue records. 0.40 cents in survey No. 664- assigned land in Labbipalem of Pattapupalem under
2B,0.93 acres in Survey No 656-1B,1.90 acres in Survey Isukapalli Panchayat in Alurumandal. TDP leaders and
No 664-1,2.07 acres in Survey No. 657-2,2.13 acres in their followers are forging pattas or ownership title
Survey No 656-3 and 2.57 acres in Survey No 656-2have deeds for vacant land in Sullurupeta, Kavali, Udayagiri,
been registered in the name of his mother-in-law Kotam Venkatagiri and Sarvepalli constituencies of the district
Reddy Padmavathi in form 1B as per revenue records. extensively. Currently, 30% of about 93,500 acres of
Tehsildar Venkateswarulu validated the same in form 1B CJAF lands assigned to Dalits in the districts are in
on April 18 this year. A pattadar passbook to this effect possession of TDP leaders.
10
YSR
Kadapa
Agastheswara Property in Kadapa District Grabbed
Ruling party leaders grabbed land to the
extent of 25 cents belonging to Agastheswara
temple in Proddatur of YSR Kadapa district in
Survey Nos: 450-AB, 451-AB and 452-AB. The
market value of these lands currently stands at
about Rs. 3 crore. PattupogulaPulayya, a TDP
leader grabbed 6.52 cents of these lands and built
a huge mansion in the area. He is a close associate
of the Nandyala TDP in charge Varadarajulu
Reddy. The Endowments department filed a case
in the Tribunal after a house was built in the
encroached space. The tribunal issued a directive
that the illegal construction should be
demolished. But, officials of the endowments
departments have been dragging their feet on
the matter. 13 people have occupied the land
illegally, but the Endowment authorities seized
only the homes of C. Lakshminaryanamma and V.
Chinnapullayya who lacked the patronage of
ruling party leaders while sparing the others who
PattupogulaPulayya's house in Agastheswara temple land.
had the support of the government.

Emperor of Corruption 63
11
Chittoor Chittoor Mutt Land Worth Rs. 1,960 Crore Grabbed

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Hathiramji Mutt owns 109 acres of land at Survey No


13 in Avilala of Tirupati rural region. On the one side, it
is close to Tirupati and on the other, it is on the national
highway right on the Poothalapattu-Naidupeta road.
An Ankanam of land here is over 1.50 lakh which means
that the estimated value of this land is about Rs. 1.962
crore. Relatives of an MP, who is well known as a patron
of Arts and also a close associate of Andhra Pradesh
Chief Minister Chandrababu Naidu and a member of
State Planning Commission grabbed prime land. encroachments is now reluctant about taking firm
Pradhyumna who as JC had put his foot down on illegal steps.

12
Anantapur Endless irregularities in Anantapur
About 30,000 acres have been illegally occupied TDP leaders used forged documents and grabbed
across Anantapur district by TDP leaders in the name of 1500 acres in Survey No. 37 of Jala canal like they did
their relatives with forged documents. Some TDP inKoripalli, Tarimela and Akuledu of Singanamala
leaders have got hundreds, even thousands of acres of constituency. Similarly, they also grabbed over 500
land registered in the name of their party workers. The acres of government land in Jallapalli, Gutukooru,
estimated worth of these lands is put at hundreds of Maratla, Kammuru, Kooderu villages in Uravakonda
crore. constituency.

64 Emperor of Corruption
The Rapthadu constituency
boarders Anantapur Corporation
area, over which TDP minister
Paritala Sunitha holds sway. A cent
of land in this area is estimated at Rs.
6lakh-10lakh. Basically, an acre is
worth Rs. 60 lakh to a crore approxi-
mately.
4.90 acres of land were allotted
to the poor in 2013 near Somula-
doddi. Minister Paritala Sunitha's
follower Pamurayi Venkatesh grab-
bed the land and planted flags bear-
ing her name.
Officials keep mum while land File Photo: Flags bearing the names of Parithala
grabbers have a field day everyw- and Pamurayi Venkatesh in Somuladoddi limits.
here in the district. After greasing
the palms of concerned officials, they got consent from officials connive with ruling party leaders and guide
them to grab these lands. It is also being said that some them to grab the land, making it seem official.

13
Kurnool Indiscriminate Land Grabbing Across Kurnool

14 acres of government land located in Survey Nos


452, 106, 35, 114 of Gonegandla mandal in Kurnool
district has been grabbed by former TDP convenor T
Nageshwar Rao aka T Nagesh Naidu, who took a loan
from a co-operative bank mortgaging this land. Police,
who came to know of this matter, rather late in the day,
filed a case against him. The five-decade-old Pothura-
juswamy temple located in Sharaf Bazaar of Yemmi-
ganuru has 6.83 acres of land on either side of the
bypass road with four lanes (Adoni-Kurnool). The R&B
department of the state government acquired 0.95
acres of this for building the bypass road and also gave Land belonging to Pothuraju Swamy Temple (trees
compensation for this. Since the acquisition involved can be seen on the other side of the highway).
land belonging to a temple, the compensation was
deposited with the court. At present, the temple owns and other such documents. In this case, however, none
2.53 acres in survey No.4401 and 3.35 acres in survey of these were scrutinized or taken into account. This
No.4403. This land was illegally registered in the name registration was done in brazen violation of the law as
of K.E. Prathap by Bariki Hanumanthu, Bariki Gopal, a case with respect to the temple land is being heard in
BarikiBhupal and Chinna Gopal. Incidentally, K.E. Prat- the Endowments Tribunal at Hyderabad.
hap is the managing partner of Pawan Developers and There's no end to TDP leaders' land grabbing in
constructions to whom the land has been turned over. Kurnool if one were to narrate instances. The ones cited
As per procedure, revenue officials should get any land here add up to the proverbial tip of the iceberg. It is
registered after obtaining and verifying Pattadar title being said that over Rs. 500 crore worth land to the
deed, revenue adangal which reveals authentic extent of 1,000 acres is under the illegal occupation of
ownership record, non-assignment land verification TDP leaders across Kurnool.

Emperor of Corruption 65
Rs. 5,907 Crore
24,614 Acres of Inam Lands Grabbed!
Inam lands should be enjoyed only by those who forwarded them to the law department for
are serving the temples and charitable trusts. They consideration.
would not have any right to transfer or sell those
lands. - Andhra Area Inam Scam of Thousands of Crores
(Abolition and Conversion) Act, 1956 Seeking to benefit from the prospective amend-
ment, to take pocession of the inam lands through legal
It is illegal to grant ryotwari pattas to inam lands route, some TDP leaders and lawmakers have been
and registration of these lands in the name of others obtaining ryotwari pattas (to inam lands) in their names
is a crime. Such instances, if any, do not hold good of their benamis. Then, they have created documents to
and are not considered valid. show that the lands were bought from those benamis.
- Supreme Court judgement, 1996 Some TDP leaders openly bought the inam lands
despite that was illegal.
Ryotwari pattas granted to inam lands are not As the government has amended the 2013 act and
valid. Those lands should be enjoyed by the people got the inam lands out of the POB, the leaders who
who are serving specified organisations only during grabbed 24,614 acres of inam lands are about to make
their service period. thousands of crores of rupees by selling those lands.
- An act made by the AP government in 2013

Ryotwari pattas shall not be given to inam lands.


Inam lands of
The sale-purchase transactions of those lands should
be banned.
Charitable trusts/
- AP High Court judgement December, 2015 Temples sold to others
Ruling Telugu Desam Party (TDP) leaders violated
court judgements and breached well-defined laws to District Area (in acres)
grab inam lands. They have been brazenly taking
pocession of the prime lands across the state. To benefit
East Godavari 1,554.16
them, the TDP government is all set to amend the West Godavari 984.10
concerned Act to hand over 24,614 acres of inam land
worth Rs.7,384 crore to the land grabbers. During the Krishna 3,511.88
process, the government has thumbed its nose at the
higher courts' order as to list of properties banned from Guntur 6,774.43
sale or transfer (POB list). Prakasam 3,602.80
Proposals to Amend Law YSR Kadapa 3,524.50
Accepting the request of Raja Gopal Sreeram, TDP
MLA from Jaggaiahpeta constituency, who eyed inam
Kurnool 4070.12
lands, the state government had appointed a committee Anantapur 404.24
of officials. The government has directed the committee
to amend the existing inam lands law to permit the Chittoor 188.25
registration of inam lands to those who have ryotwari
pattas for those lands during the process. The Total 24,614.48
committee prepared the amendments accordingly and

66 Emperor of Corruption
Rs. 3,245 Crore
Corporates Gifted Valuable Lands in Capital Area
Land worth Rs.4 Crore an Acre Given Away for Rs. 50 Lakh
927 Acres of Land Worth Rs. 3,708 Crore, Given Away for Rs. 463 Crore

The Go No. 296 which allocated lands to corporate


companies in the capital city.

The Chandrababu Naidu government is companies.


generously gifting the land which it forcefully taken The price of an acre of land in the area is decided
from farmers under the guise of 'construction' of AS Rs. 4 crore during the land allocation to Start-up
capital city, to multinationals and other corporate Area Project. Going by this price, the government
entities for a dirt-cheap price. Claiming to bring should get Rs. 3,708 crore for the 927 acres of land,
reputed educational institutions to the area, he is but, it has only gained Rs. 463 crore as the CM had
actually giving away land to his crony firms at a rate given this land for mere Rs. 50 lakh an acre.
much lower than the fixed price of Rs. 4 crore. Chandrababu Naidu extending preferential
treatment to select corporate entities has short-
Cronies Get Better Treatment changed the state treasury to the extent of Rs. 3,245
Chandrababu Naidu had already allotted 1,300 crore. He has decided to give the land to these
acres to 75 firms out of which 8 firms were given 927 companies on lease at first, on free hold (without
acres at the price of Rs. 50 lakh an acre. It is now any conditions for a lease of 99 years) and on
preparing the ground to give land away to 32 more outright sale after. And then he allotted land to
public-sector units on lease basis and to corporate

Emperor of Corruption 67
entities on a freehold system. The directives of the Supreme Court and the
The beneficiaries of this largesse of 927 acres guidelines of the Centre strongly hold that a
included BRS Medicity Healthcare and Research government is not supposed to give land on lease for
Private Limited, Indo-UK Institute of Health, SRM, VIT, more than a period of 33 years. However, the AP
Amrutha University, Basavatarakam Cancer Hospital, government under Chandrababu Naidu, changed the
Xavier School of Management, Hyderabad Eye rules completely to bypass these directives and to
Institute, among others. They were given a 99 year give land away on a 99-year lease.
lease period each. Even if land is to be allotted a process of bidding is
When the start-up area project was being looted supposed to be followed and the highest bidder
by Singapore-based entities, the government fixed should be given the land. Throwing all norms to the
the cost of land at Rs. 4 crore an acre. The matter winds, the AP government gave handpicked
seemed fishy from the very beginning judging from corporates and private firms land at throwaway
the throwaway prices at which land was given. It prices. Experts say that these firms will protect their
became apparent that there was a very elaborate own interests and will not serve the people of the
design behind the whole process of allotment. state in any way.
Allegations were levelled against the CM for According to the Land Acquisition Act, 2013, land
having gifted away precious land to these corporates acquired from farmers should not be given to private
for kickbacks. Interestingly, the government is companies/corporate firms. The AP government
developing roads, providing power and water supply under Chandrababu Naidu, however, deceptively
in the lands gifted to the corporates for a song, claims that provisions of this Act do not apply to this
spending the tax-payers' money. These companies instance. Objections are being raised over the fact
therefore, came forward to buy hundreds of acres that the AP government gave these lands away at
considering the low price and the fact that throwaway prices to these corporate and private
everything was being provided on a platter by the entities even before the farmers from whom it
government. acquired them, registered these lands in the name of
the government.
Bidding Process Ignored

Capital Land Allocation


Organisation Land Allotted Method of Allotment
BRS Medicity Healthcare and Research Pvt. Limited 100 acres Freehold
Indo-UK Institute of Health 150 acres Freehold
VIT Group of Educational Institutions 200 acres Freehold
SRM University 200 acres Freehold
Amrutha University 200 acres Freehold
Basavatarakam Cancer Hospital 15 acres Freehold
Xavier School of Management 50 acres Freehold
Hyderabad Eye Institute 12 acres Lease
Total 927 Acres

68 Emperor of Corruption
Rs. 1,500 Crore
IT Minister Grabs Daspalla Hills
was also classified as "hill assessed waste dry".
However, as Nara Lokesh, the IT minister and son
of the Chief Minister, wanted these lands, a layout
was prepared in the name of 49 industrialists, who
have allegiance to the ruling party. Having sensed the
possibility of encroachment, the then district
Collector Yuvraj Singh had issued an extraordinary
gazette notification (RC Number 3795/ 2008/E1) in
which he reiterated that Daspalla lands belong to the
state government. This no-nonsense approach of the
honest officer attracted the TDP government's wrath
and he was immediately transferred out of Vizag.

Watchman Sells Land for Rs. 20 Crore!


TDP Zonal Office Constructed on Survey No: 1196 The saga of corruption took an even more curious
turn with the TDP bigwigs propped up a watchman
Back in 2001, the erstwhile TDP government named DasariAppa Rao from the 19th ward of Vizag
issued a GO stating that Daspalla Hills was a as a land-owner. They claimed that the disputed lands
government land. The district collector also issued a were allotted to Mr. Appa Rao and then he sold 2,736
gazette notification confirming this status. Incredibly sq. yards land (of survey no: 1196) to a woman named
enough, the AP CM Chandrababu Naidu, his son DatlaSanthi. Incidentally, Mr. Appa Rao who was
Lokesh and their stooges are now arguing that this is supposed to have sold this land for Rs. 20 crore still
no government land and have started constructing gets his monthly ration by standing in the queue!
buildings on it. They are also fabricating evidence for
the ownership rights. Here is the story. TDP Office on Disputed Land
Finally, the disputed lands were occupied by Nara
Facts of the Scam Lokesh. He has constructed his party zonal office in
The ownership status of Daspalla Hills has been in about 2000 sq. yards land of the survey no: 1196. This
disputes since 2000. Out of 85.70 acres land located in land was leased to TDP way back in 2001 for 25 years.
the survey numbers 1027, 1028, 1196 and 1197, 62.97 Here, a simple question for the ruling party is-if it was
acres land was recorded as government land. The private land, how could the then TDP government
value of this land is estimated to be over Rs. 1,500 could lease out that land? If it is government land as
crore. However, Rani Kamala Devi of Daspalla staked per the previous GOs and gazzete notifications, how
her claim to this land and approached the High Court come it has fallen into the hands of private parties
in 2001stating that those lands were her inheritance. now? None of these questions have elicited
However, the then TDP government issued GO no. satisfactory answers from the government. The
657 on October 10, 2001, stating that the land Daspalla Hills land was grabbed by the state IT
belonged exclusively to the government. The land minister with the help of fake documents!

Emperor of Corruption 69
Rs. 1,000 Crore
Govt. Gifted Land to Encroacher
In Vizag, CM's Relative Rewarded for His Wrongs

The orders issued by Principal Secretary,


Revenue, cancelling the GO, which allocated
A copy of the GO issued in February 2014, clearly shows the
the land for construction of offices to different
allocation of 35 acres of land in Rishikonda for the construction of
government departments.
offices of different government departments.

A small mistake by a common man canceled its previous GO which had


would land him in jail. However, the allocated the land in question to
wrongs of the rich seldom attract punish- government departments. It also has
ment. If the wrong-doer is a relative and cleared the decks to hand over the land,
benami of the CM, even the most grievous which is worth more than Rs. 1,000 crore,
deeds of him would be praised as noble to the land vulture.
deeds and the government would issue
GOs in support of his 'exemplary deeds'.
The Official Land Grab
This is what precisely happening in Vizag. Gitam University, which has
Late M.V.V.S. Murthy, a former TDP encroached upon the government
leader and founder of Gitam University, Late MVVS Murthy land, later took possession of the land
had taken possession of the 55.24-acre legally through a Government Order.
land, located in Rishikonda area of Vizag city in survey Once TDP coming into power, Murthy had
nos: 35, 37 and 38. Previous government has petitioned the government requesting for
allocated this land to government departments for allocation of land that was under his encroachment.
the construction of offices and educational institutes. The Chandrababu government responded swiftly
The TDP coming into power in 2014 had become a and positively; with the CM himself overseeing the
boon to Mr. Murthy, who then legalised his illegal preparation of the file for land transfer. Thus, the CM
occupation. Chandrababu government, in a bizarre has gifted away the valuable lands despite stiff
U-turn, yielded to the claim of the land grabber and resistance from the officials at all levels. The

70 Emperor of Corruption
government's absurd decision got exposed when
it came under the media lens.
Land Allocated to Government Offices
All the previous records of government clearly show
that these were government lands and couldn't be
allocated to Gitam University. Despite the clear
status, Mr. Murthy could erect considerable
pressure on the officials. With the intention to save
these lands, then CCLA issued an order in 2014
allocating five acres for an SC hostel, six acres for
two hostels for post-matric students, six acres for
weaker sections housing scheme and training
centre, another six acres for Income Tax
Department, five acres for IGNOU regional centre
and seven acres for hostels of post-matric girl
students.

Tehsildar Report Confirmed the Land Grab


A part of the report by Visakha Rural Tehsildar who
The District Collector, RDO and Tehsildar had confirmed the encroachment of 55.24 acres government lands
made it clear that the 55.24-acre valuable land was in Yandada, Rishikonda villages of survey nos: 15P, 16P, 19P,
grabbed by Gitam University. This encroachment 20P, 55P, 61P, 34, 35, 37, 38 by Gitam University.
was further confirmed by a survey done by an
Assistant Director, Survey and Land Records. The
Tehsildar submitted a full-fledged report to the state government on
October 8, 2015, confirming the land grab with the help of Google
maps. Despite the clear evidence, Mr. Murthy's proximity to the CM
ensured the withdrawal of the government's previous GO, making way
for a formal handover of the land to its grabber.

The mounds in the place adjacent to Gitam


Hospital, encroached upon by Gitam.

The letter was written by the Assistant


Director of Survey and Land Records to Vizag
Joint Collector about Gitam encroachment
of government lands in Rishikonda.

Emperor of Corruption 71
God Too Was Exploited

Rs. 978 Crore


Sadavarti Choultry Lands Alienated..!
Chandrababu drew a sketch to palm off high-value Sadavarti lands, which could be not less
than of Rs. 1,000 Crore, to one of his benamis for mere Rs. 22 Crore.
The plan has failed due to the media focus, legal batter waged by the
YSRCP MLA Alla Ramakrishna Reddy and the objections of Tamil Nadu state government
Finally, the court quashed the auction and plan had busted

The letter from Joint Commissioner dated 18-04-2016;


which stated that the value of an acre of Satram land
The government memo issued on 06.04.2015
citing the letter from MLA Kommalapati Sridhar to was Rs. 6 crore and urged the government to take this
CMO dated 10-08-2014. The orders initiated the point into consideration while making any decision
sale of the Choultry lands. pertaining to the lands.

Would anybody sell an acre land at Rs. 27 lakh facility to economically weak Brahmin students who
when a plot of 200-yard belonging to the same were pursuing Vedic studies. To meet the future needs of
locality is being sold at Rs. 55 lakh? That's what the institution, he had donated 471.76 acres of land,
Chandrababu Naidu did. Here is the full story. which is located in today's suburbs of Chennai city. The
lands fall under the limits of Navalur, Talambur, Padur
Land Sale Mooted villages of Chengalpattu taluk of Kanchipuram district.
Sri Sadavarti Choultry was established in Amaravati Today, these villages form a part of the high-value IT
of Guntur district before independence by the erstwhile belt of Chennai city and some of the Satram lands flank
Amaravati Jamindar Raja Vasireddy Venkatadri Naidu. the costly Old Mahabalipuram road. Several well-known
The objective of the choultry was to provide boarding educational institutes such as Sathyabama University,

72 Emperor of Corruption
Hindustan University, campuses of several IT
companies including TCS, resorts, star hotels and
gated communities are located adjacent to these
lands.
Right after his coming into the power, the ruling
party MLA Kommalapati Sridhar wrote the CM
seeking the sale of the lands of Sadavarti Choultry on
the pretext that the lands were being encroached
upon. The CM office responded to his letter positi-
vely and forwarded it to the Endowments Depart-
ment on September 12, 2014. The AP government
has issued orders on April 6, 2015 (Memo No: 28228)
for the sale of 83.11 acres of land and the lands were
auctioned on March 28, 2016. This order was High Court Shocks Babu
followed up a dubious auction, in which the lands The AP government's challenge in High Court that it
were purchased by none other than the family of was ready to give Sadavarati lands to whosoever pays
ChalamalasettyRamanujaya, the chairman of Kapu additional Rs. 5 crore (to the auctioned price) got a
Corporation and TDP leader from Krishna district. fitting reply from Alla Ramakrishna Reddy, the
opposition YSRCP MLA. Mr. Reddy's response to the
Acre is Only Rs. 50 lakh!! government's challenge was immediately accepted by
The value of an acre land in Thalambur area is Rs. the court and he was given four weeks time to deposit
6 crore per acre according to the government's Rs. 27.44 crore (the auctioned price of Rs. 22.44 crore +
estimation. In the ventures of private real estate additional Rs. 5 crore). This turn of events has stunned
companies in the same locality as seen from the Chandrababu Naidu and his son Lokesh, who have tried
photograph, the value of 200-yard plot is around Rs. hard to gift away the choultry lands to their benamis.
55 lakh. This means the market value of the land is Rs. Here is the series of developments in this case.
13 crore per acre. Giving the problem of encroach- Alla Ramakrishna Reddy filed a PIL in the AP High
ments as the pretext, the Executive Officer of the Court objecting the scandalous sale of Sadavarti lands
choultry proposed to sell off the lands at the upset through a dubious auction. He sought a CBI
price of Rs. 50 lakh per acre and the officials of the investigation into the episode and a fresh auction of the
Endowments Department accepted his proposal lands so that the government could secure a better
without any question. price. However, the AP government objected the case
and submitted that Rs. 22.44 crore was the best price it
Not an Auction, but Loot! could get for the lands that are under encroachment.
Generally, in any auction, the sale takes place The government further challenged the opposition
only when the bidders come up with a better price MLA that it could sell him the lands if he was ready to
than that of the upset price. Or else, the government pay the additional amount of Rs. 5 crore to the
would cancel the auction and call for a fresh one. auctioned price. Having heard the arguments of both
However, in the auction of Sadavarti lands that was sides, the bench which was headed by the Assistant
conducted on March 28, 2015, exactly opposite to Chief Justice asked the MLA if he was ready to accept
the general principles of auction took place. The the government's challenge. The court also gave him
officials stated that there were no buyers for the the relaxation that if he was financially sound, he could
upset price and took the highest bid- which was far get a party who can buy the land at the stated price.
below the upset price- into consideration and Accepting the challenge, Ponnavolu Sudhakar Reddy,
confirmed the sale. the counsel of the MLA, submitted to the court on July
Endowments Department allots even a small 3, 2017, that they were up for the challenge and Rs.
shop by way of e-auction, however, these high-value 27.44 crore would be paid within four week's time. By
lands were sold through a skewed auction. Thus, the the time of publication of this book, the opposition
83.11-acre land was sold for just Rs. 22.44 crore i.e. Rs. MLA has made the entire payment and awaiting the
27 lakh per acre. The valuable lands were purchased further orders of the court.

Emperor of Corruption 73
The campuses of IT companies which are located adjacent to Sadavarthi lands.
The YSRCP fact finding team which recently visited the lands can be seen in the picture.

at a throw-away price by ChalamalasettyRamanujaya's BadveluSrinivasulu Reddy, a follower of Minister


family along with five other people - Mandala Sanjeeva Adinarayana Reddy.
Reddy, M. Sunitha Reddy, Chavali Krishna Reddy, M. He has tried to buy the lands at Rs. 60.30 crore.
SuryakiranMouli. D. Pavan Kumar and R. Sivarama Another TDP leader Varadarajula Reddy also partici-
Krishna Rao. However, this auction was later cancelled pated in the auction. However, the scheme of the TDP
by the AP High Court due to visible irregularities in the leaders once again came forth, they did not show
auction process. further interest in owning the land. The highest bidder
has failed to Rs. 60.30 crore within the stipulated time.
Bigwigs Behind the Scam The second bidder has shown interest to pay the
According to the information from an officer of the amount and take the lands.
Endowments Department and the lawyer who has been
working on the cases of Sadavarti choultry lands, the
value of 83.11 acres land could be around Rs. 500 crore;
even as per the government valuation of Rs. 6 crore per
acre. The prevailing market value is Rs. 13 crore, which
puts the total value of the land around Rs. 1,000 crore. It
is evident that all these transactions took place through
the benamis of the Chief Minister and his son for the
illegal gains at the cost of public exchequer.

Again TDP leaders!


Due to the legal fight of Mr. Alla Ramakrishna Reddy,
the YSRCP MLA,the AP High Court had cancelled the first
auction, which has been fraught with several
discrepancies. The second auction was conducted on
September 18, 2017, at TTD Kalyana Mandapam in
Chennai. While the first auction was dominated by Kapu The compound wall which is adjacent to the
Corporation chairman and TDP leader Chalamalasetty Sadavarthi lands.
Ramanujaya, the second auction was dominated by

74 Emperor of Corruption
More Rules, More Irregularities!!
Once the Sadavarti land scam surfaced and the the government within 72 hours. However, it
public interest litigation petitions were filed in the wanted the government to register the lands in the
AP High Court, the state government has company's name. The company also expressed its
scrambled to come up with a proper response. It willingness to participate in a fresh auction. In such
explained the court that it took the decisions that a case, the company had asked to treat it on par
it had taken were meant to save the choultry lands with other competitors. It questioned as to why it
and it could not get any better price than the was being singled out and asked to deposit Rs.
secured price. The government said that it was 28.05 crore to participate in the auction. It said it
ready to sell the lands to anyone who was willing would pay Rs. 10 lakh as EMDlike any other bidder
to pay Rs. 5 crore more than the bid price. did during the previous auction and participate in
Responding to the explanation of the AP the auction.
government, a construction company named PLR The company stated it had no objection to
Projects came forward to take to pay Rs. 5 crore government handing over of the land to the
more than the bid price and conveyed highest bidder. It hoped that the fresh auction
itswillingness to the government. The government, could attract more competitors and fetch a better
to dissuade the company from going ahead with price for Sadavarti lands. PLR Projects gave an
its proposal, tried to create hurdles by citing quite assurance that it would pay Rs. 28.05 crore as the
afew rules. minimum price and hence, there was no fear of
The Commissioner of Endowments wrote to decreased price for the lands.
PLR Projects stating that the lands could be re- However, the government did not respond to
auctioned only if the company deposits Rs. 28.05 the offer suitably. While a private company had
crore within 72 hours. Even in the past, when the come forward to help the government in securing
company evinced its interest, the Commissioner a better price for its lands, the government
had asked the company to deposit Rs. 22.22 crore, snubbed the company with its unreasonable
the highest bid, and an amount of 25% over and conditions and went on creating new impediments
above that. to it. The government's stand that it won't help in
Besides that, he also claimed that Sadavarti vacating the encroachments and won't register the
lands were under encroachment and the lands seemed the strangest aspect in this bizarre
government would do nothing in the future to saga.
vacate those encroachments. The commissioner If the lands were really under encroachments,
made it clear that it was the sole responsibility of the government could as well slap cases on the
the companyto take careof the encroachments. He trespassing parties and can auction the lands to
further said the government would only give the secure the best possible price. However, the
sale confirmation and won't take up the Chandrababu government doesn't seem to have
registration of the lands, which would have to be any such positive ideas. It was only trying to ensure
coordinated with the Tamil Nadu Registrations that nobody else would participate in the auction
Department. In short, he tried to discourage the so that these lands could be giftedto the leaders in
company with quite a few bureaucratic stumbling the ruling party. If there is one single art that the
blocks, which were invented for this sole purpose. TDP government has mastered, it is was subverting
However, the PLR Projects confirmed that it was rules for illegal activities, with land-grabbing at the
up for the challenge. The company said it was top of the list and thereby routing huge kickbacks
ready to deposit Rs. 28.05 crore as demanded by into the pockets of its leaders.

Emperor of Corruption 75
Rs.905 Crore
Lulu Gets 12.52 Acre in Vizag
AP CM Chandrababu Naidu gifted away the prime mega convention centre and shopping mall spread over
land worth Rs. 905 crore to Lulu group, a UAE-based 9.12 acres at an initial cost of Rs. 750 crore near the RK
business conglomerate which has interests in the Beach Front in Visakhapatnam. To initiate the
hospitality sector. The group proposed to process, Chandrababu Naidu visited the
build a five-star hotel, convention hall and a convention centre built by the Lulu group
shopping mall in Visakhapatnam. in Kochi. He himself conducted
Generally, the government allocates negotiations with the group, during the
lands to the businesses in backward course of which they have decided that
regions, with the hope invigorating the if an additional 3.40 acres belonging to
growth of those regions. However, in this CMR group were to be added, the
case, Lulu group was given prime land convention centre could join the RK
and heavy concessions to build a five-star Beach Front. The Chief Minister decided
hotel. To give land to Lulu, the government that land had to be acquired from the CMR
had taken back the land from the CMR group. group and given to the Lulu group. He
What more? The government even bore the costs of conducted negotiations with the CMR group
registration, stamp duty, capital gains and other such personally to this effect.
expenses from the state treasury! By doing so, the state On July 19, 2017, he has passed orders transferring
government has imposed a burden of Rs.171.27 crore on the 3.40 acre belonging to the CMR group to Lulu group.
the exchequer. The CM himself got involved in this In lieu of the land taken, the CMR group should be given
decision and overruled the objections of Law government land elsewhere. In compliance with the
Department, vice-chairman of Vizag development CM's orders, the Visakhapatnam collector and other
authority and the Visakhapatnam collector. Here are officials conducted negotiations with the
further details. representatives of the CMR group.

Special Favours for Lulu Rs.171 Crore Burden on Exchequer


A cabinet meeting presided over by the CM decided The district collector of Visakhapatnam made it clear
to hand over 12.52 acres of prime land on the RK Beach that the 3.40 acres land belonging to CMR group on RK
Front to Lulu group at a nominal rate of Rs. 50 lakh per Beach Front was valued at Rs. 246.84 crore. The collector
acre. This land belonged to the AP Industrial also pointed out that the value of 4.85 acres of land
Infrastructure Corporation (APIIC) and was of Rs. 905 being given to CMR group in lieu of this land was Rs. 321
crore worth. This land was given to Lulu group on an crore. The VUDA, the Department of Roads and Buildings
annual lease of Rs. 4.51 crore on a lease cum and Greater Visakhapatnam Municipal Corporation had
development basis. As if this was not enough, the decided to register the land in the name of CMR group.
government gave another 3.40 acres of land that was The AP government had to pay capital gains tax to the
already assigned to the CMR group. It didn't end there. extent of Rs. 64.20 crore, the registration and stamp duty
The CMR group then was given 4.85 acres of of Rs. 24.07 crore, the cost difference of the land taken
government land in lieu of the land taken from it for from CMR to the extent of Rs. 75 crore and Rs.8 crore
allotment to Lulu group. The most interesting aspect of towards the function hall on RK Beach Front owned by
this episode is the keenness shown by the CM to finalise the CMR group.
this transaction. The government paid no attention to the fact that an
additional burden of Rs.171.27 crore was being imposed
Chief Minister's Wheeling and Dealing on the state treasury because of this deal. The kickbacks
of the deal were powerful enough to undermine the
The Lulu group proposed to build a five-star hotel,
public interest.

76 Emperor of Corruption
Rs. 604 Crore
Minister Grabs Vizag Suburban Lands
Land pooling had paused due to continuous media stories...
and VUDA secretary transferred
The AP HRD Minister Ganta Srinivasa Rao
made about Rs. 604 crore by conning the farmers
of Vizag district. He bought 358 acres of the
assigned lands through his benamis at cheaper
rates and had them surrender those lands for
pooling so that he could get a huge compensation.
He took advantage of the Visakhapatnam Urban
Development Authority's (VUDA) plan to construct
houses in suburban areas of the city. He advanced
small amounts to the poor owners of the assigned
lands and entered into agreements with them.
Then he got the GO MS No: 290, the land pooling
GO, issued on November 14, 2016. Next, he got
issued GO No: 304, which stated that the present
landowners and agreement holders can also offer
the lands for the pooling. It was pretty clear that
the CM was behind this GO.
Assigned lands shouldn't be enjoyed by the GO. 304, which was issued on November 14, 2016, has
people other than original beneficiaries. Sale specified the villages in which the land pooling would be
purchase transactions of these lands are not valid. done. Incidentally, the TDP leaders have bought lands
The minister bought about 358 acres of assigned in these villages.
lands (through his benamis). This wouldn't have
been possible without the support from the Chief ☛ The VUDA gave 1210 sq. yards plot for each acre of
Minister. pooled land and the value of this plot was Rs. 1.80
crore.
Here is the timeline ☛ Thus, the total compensation that the minister could
of this atrocious development - get was more than Rs. 645.24 crore.
☛ The minister has purchased 358.47 acres of assigned ☛ However, the farmers were given only Rs. 2 to Rs. 12
land with the aid of his benamis at cheaper prices. lakh per acre and the minister had spent only Rs. 40
☛ As these lands are proposed for land pooling, the crore to buy the lands.
minimum price a sq. yard these lands went up to Rs. ☛ But, the minister has pocketed Rs. 604 crore (Rs. 644
15,000 crore - Rs. 40 crore)

Emperor of Corruption 77
Rs. 400 Crore
Franklin Templeton Scam
● Franklin Templeton got 40-acre land for mere Rs. 30 crore
while the market price was Rs. 406 crore
● Initially, the land was given on lease,
but it was later changed into an outright sale
● The AP Govt. refused to pay heed to the advice of APIIC,
which asked the government to allocate 10 acres at Rs. 2.70 crore per acre.
● Franklin Templeton got a shady history of job promises; it made promises of
job creation while taking land in Hyderabad but failed to fulfill it

Andhra Pradesh (AP) government has


allocated about 40-acres of high-value
land to Franklin Templeton Investments
(FTI) in Visakhapatnam at a throwaway
price. While the market value of this land is
about Rs. 400 crore, the company could
get it for mere Rs. 13 crore. The
government has bent the rules for this
allocation and refused to pay heed to the
prudent advice of the AP Industrial
Investment Corporation (APIIC) on land
price and the quantum of land allocated.
This transaction smacks of a scam. Here is
the full story.

FTI in AP
The AP CM Chandrababu Naidu has
visited the FT headquarters at San
Francisco and invited the company to
invest in the state. He also assured the
company that it would be given 100-acre land in the could be increased in the future if need be.
coastal area. Following this promise, he has allotted 40 The APIIC has further argued that the market price of
acres land of APIIC to the financial services company. the land is Rs.10.16 crore and it is giving to companies at
The APIIC under the Chief Secretary has raised quite a the price of Rs. 2.70 crore and FTI should be given land at
few objections at the allocation level itself. The industrial least at that price. However, the government was quite
development body has made it clear that the company adamant and the Principal Secretary of IT Department K.
headquarters in San Francisco was in 10 acres and it Vijayanand has issued GO No: 2 allocating the land. With
would be imperative allocate 10 acres land initially and this GO, the AP government has ordered the allocation
of 25 acres to FTI and 15 acres to Innova Solutions Inc. at

78 Emperor of Corruption
a concessional price of Rs. 32.50 lakh per acre. In the GO, time from two years to seven years. The GO also has
the government has projected that FTI will bring 2,500 converted land holding type from lease to outright sale
high-end jobs to the state with this project and also and ordered the APIIC an immediate sale of the land to
gave relaxation to the company to use 30 percent of the the company. Generally, companies don't get full rights
land for commercial purposes. over the land before the implementation of the project
in question. Even in the case of the sale, the sale deed
Much Better Deal for FTI won't be handed over to the companies until the full
The land price difference is not the only problem in implementation of the project. However, through this
this episode. Chandrababu Naidu has further sweetened GO, the government has not only extended the project
the deal by issuing another GO to further relax the rules. implementation time from two years to seven years but
Initially, the company was asked to implement the asked the APIIC to sell the land to the company at a
project within two years. However, in the fresh GO, the throwaway price, which was not even one percent of its
government has increased the project implementation market price.

Rs. 350 Crore


Rs. 100 Crore Worth RTC Land in Guntur Given Away Under Swiss Challenge
Rs. 250 Crore Worth Prime RTC Land in Gannavaram Gifted to HCL
Rs. 20 Crore Worth RTC Land in Narsaraopet Grabbed by Kodela's Son
Ganta, Narayana Cast Their Eye on RTC Owned Land in Visakhapatnam

Tracts of prime land in towns and cities owned by regional manager's office. The prevailing market rate in
Andhra Pradesh State Road Transport Corporation this area is said to be over Rs 1.5 lakh per yard and going
(APSRTC)are being given away to corporate entities by by this, the value of this piece of land would be over Rs.
the AP government. The cronies of Chandrababu Naidu 100 crore. If this land was to be put to commercial use,
heavily benefitted out of this covetous decision. The hundreds of crores can be made from it.
APSRTC has 1,960 acres of land in 13 districts of AP. As The RTC has supplied the tenders to companies
per revenue records, the RTC lands are valued at Rs. favoured by the AP government under its fake Swiss
15,000 crore, but, the market value would be more than Challenge method, after modifying rules accordingly. It
Rs 50,000 crore. The Telugu Desam Party is going all out did not stop at that, but also decided the lease rates to
to give awaythe RTC lands to its leaders and their benefit these companies.In other words, the Swiss
benamis. In different parts of the state, the RTC has so far challenge method is a way of framing rules to ensure
given 33 acres land to different entities for 49 years lease that a favoured company gets the tender. In this case,
under the BOT (Build, Operate, Transfer) model. The Siddapradha company from Vijayawada, known to be
remaining land is also on the line of distribution, to close to Nara Lokesh, was the lone participant in the
industrialists and IT companies. As a part of this, 28 acres tender. Since it fulfilled all eligibility criteria as laid down
land in Gannavaram was transferred to a private by RTC, in a clear one-sided affair, hundreds of crore
company. worth prime land was given away on a 49-year lease to
this company.
Nara Lokesh's Dirty Lease Game
How Was it Done
The RTC owns 8,643 sq. yards of lands (approx 1.80 The RTC management took into account only the
acre) near the main bus stand in Guntur, right next to the turnover of the company while awarding the tender

Emperor of Corruption 79
under the Swiss Challenge method. Customarily, drew up an elaborate design to grab it. He chose this
engineering experts and officials take into account the land for the construction of a multiplex. To this end, he
requisite experience in construction, as also the value of has exerted pressure on RTC officials to get their staff
projects undertaken by the company in question while quarters vacated so that the corporation could call for
awarding a contract. They said that if a company had a tender to develop this land on a BOT (build, operate,
turnover of Rs. 5 to Rs. 10 crore, it would be eligible to transfer) basis. Once tenders were called for, he
undertake a project. The company which took the land threatened others from participating in the bidding
on lease showed a turnover of Rs. 8.45 crore. The single process. Thus, he secured valuable land worth Rs. 20
bidder was handed over the tender. crore at a token rent of Rs. 1 lakh per month.
Additionally, he also ensured that the APSRTC
Gannavaram Lands Gifted to HCL incorporated a clause in the agreement stating that he
During NTR's tenure as the CM, he allocated 28 acres would not have to pay a rupee till the construction was
of land for the APSRTC Training Centre in Survey No.20/1 completed.
of Gannavaram and issued GO No.117 to this effect. The Ganta, Narayana Eye Prime VisakhaLands
APSRTC took up construction of building on this land.
However, as the government had decided to handover Minister Ganta Srinivasa Rao and Narayana started
this land to HCL, it made the district collector of Krishna making their moves to grab prime land in Visakha-
district to submit a report stating that these lands were patnam worth hundreds of crore owned by APSRTC. In-
not being utilised. Eventually, Rs. 250 crore worth prime cidentally, both the ministers are relatives too. Together,
land was given away to HCL. they have prepared the ground to build a shopping
complex in Maddipalem and Narsipatnam. On minister
Kodela Son's Shady Deal Ganta Srinivasa Rao's instructions, RTC officials went
backwards to send speedily a report on land owned by
The AP Speaker Kodela Sivaprasad Rao's son Kodela
the corporation in Maddipalem and Narsipatnam.
Sivarama Krishna grabbed Rs. 20 crore worth prime land
The RTC owns 8.7 acres of land in Maddipalem of
owned by RTC in Narsaraopeta,through his proxies. He
Visakhapatnam district where each yard is estimated to
blocked other tenders and ensured that his proxies
cost Rs 1 lakh. By this estimate, this land (38,400 yards) is
would be sole participants in the tender of this prime
worth Rs. 384 crore. However, owing to the pressure
land. Here are the details.
exerted by the minister, the RTC put the cost of this land
The APSRTC has a depot and a garage in
at Rs. 70 crore. Similarly, APSRTC owns 2 acres of land in
Narasaraopeta on the Guntur-Kurnool highway. Right
Narsipatnam, where a cent of land is worth Rs. 10 lakh.
next to this garage is a piece of land of about 60 cents in
These two acres (200 cents) is worth Rs. 20 crore, but RTC
which APSRTC staff quarters are situated. Once the TDP
put the value of this prime land at Rs. 5 crore only.
came to power, Speaker's son eyed this prime land and

80 Emperor of Corruption
Rs. 338 Crore
A Friend in Deed
The Land Value is Rs. 363 Crore
Palmed Off for Mere Rs. 25 Crore

The GO that allocated 50 acres land to eCentric Solutions Pvt.Ltd.,


the company of Lokesh friend Sridhar, in Vizag.

The state government gifted a land worth Rs. 363 be thrice to the price determined by the APLMA.
crore to the company of a friend of Nara Lokesh for just The land management agency recommended the
Rs. 25 crore. Though Andhra Pradesh Industrial APIIC that the 50-acre land has to be allocated at the
Infrastructure Corporation (APIIC), it has allotted the price of Rs. 363 crore (Rs. 7.26 crore per acre) through its
land to eCentric Solutions Pvt. Ltd., the company of one resolution passed on October 16, 2015. However, the
Mr. Sridhar, a friend of Lokesh, in Madhurawada village cabinet decided to transfer the land to APIIC, which did
of Vizag Rural mandal, going against the rules. the further transfer to the eCentric Solutions, at cheaper
Though the AP Land Management Agency (APLMA), rates. To this effect, the Revenue Department issued GO
which functions under the CCLA, had decided the value No: 428 on November 12, 2015. The APIIC allotted the
of an acre land as Rs. 7.26 crore, the state cabinet set this land to eCentric Solutions for just Rs. 25 crore. Because
valuation aside and brought down the land value to Rs. of this cabinet decision, the state exchequer lost Rs. 338
50 lakh (per acre). The market value of this land is said to crore.

Emperor of Corruption 81
Rs. 133 Crore
Lands to NTR Trust in All Districts
The value of the lands that were allocated to NTR Trust
in three districts is more than Rs. 133.5 crore.
market value of this land is about Rs. 25 crore. In Kadapa
city, one-acre land located right in the centre of the city
was allotted to the Trust for mere Rs. 10 lakh. The market
value of this land is about Rs. 50 crore.

In Guise of Political Party


Chandrababu is going to extend the same method
to the rest of the state. As the further step, he issued a
GO on July 21, 2016, allocating the lands to national and
regional political parties in the state capital as well as
district headquarters. These lands would be allocated on
99 years lease against a nominal rent. Generally, the
The GO that allocated land to NTR Trust in Kakinada. governments allocate land to all the national and
regional political parties that are recognised by the
No one knows the land value better than the AP CM Election Commission.
Chandrababu Naidu. That's why he has been grabbing However, Chandrababu government abandoned
the land in different names. This time, he has made a this tradition by coming up with a rule- that the land
move to grab the land in the name of his party trust. A allocation would be proportionate to the number of
few months ago, he approved the applications that were seats the parties have won in the Assembly. In addition
by the NTR Trust for allocation of land. Interestingly, to this, the rules issued by the government also ensured
these applications were made by Chandrababu himself, that no other party except TDP would get significant
when he was the opposition leader, in the capacity of benefit from this arrangement.
the Trust chairman. That means the same man had The following are the rules issued by the Revenue
applied for the lands when in opposition and gave the Department a few months ago. According to the rules- -
nod once coming into power. ● The party that won more than 50 percent seats can
With these approvals, the NTR Trust has got high- get four acres land in the capital city and two acres
value lands in Srikakulam, Kakinada and Kadapa. In the lands each in district headquarters. (Obviously, only
heart of Srikakulam town- two pieces of land- 1.29 acres TDP belongs to this category.)
of survey no: 700-1 and 0.71 acres of survey no: 701-1- ● The parties that won the seats between 25 percent
were allocated to NTR Trust. This land was allocated to and 50 percent can get up to half-acre land in the
the trust despite being previously earmarked for the capital city and 1000 sq. yards land in district
needs of the municipal corporation. The land was leased headquarters. (YSRCP alone is in this category.)
to NTR Trust for 99 years at annual lease fee of Rs. 25,000! (YSRCP lost the power with 5-lakh vote difference
Likewise, the 2000 sq. yards land that is located in the while winning 67 seats despite being the first time party.
heart of Kakinada city was also gifted to NTR Trust. The Despite such performance, Chandrababu shows

82 Emperor of Corruption
surprising levels of contempt towards the opposition. headquarters.
This twisted rule is an indication of his hatred.) ● The land would be first leased for 33 years and the
● The parties that won the seats below 25 percent or at lease can be renewed for another 99 years.
least one seat can get 1000 sq. yards land in the ● Because of these rules, only TDP, YSRCP and BJP are
capital and 300 sq. yards land in the district going to get the land.

The Rs. 100 Crore


508 Acres into Repalle MLA's Pocket

2011 Record showing


422 acres in survey no: 874.
2016 Record showing
only 227.84 acre land in survey no: 874.
Record showing
land in the names
of the family
members of Kesana
Surendra Babu in
the sub-divisions of
survey no:
875.Surendra Babu
is a confidant of
The lands that are recorded in the names
MLA Satyaprasad
of the family members of Kuchinapudi market yard
Chairman, Panthani Muralidhara Rao

Land grabbing has become the most important Indeed, not grabbing lands has become sin for the
political activity of ruling Telugu Desam Party in the ruling party leaders.
state. The Chief Minister Chandrababu Naidu has Ardently following his party's single-point
given free rein to his party leaders and MLAs to grab agenda, Repalle MLA A. Satyaprasad grabbed 313.60
the lands so that they can become financially acres land of the survey no:875 and 195 acres land of
invincible so that his party could win the coming the survey no: 874. In total, he has grabbed 508-acre
elections unchallenged! This lenience of the CM has land worth Rs. 101.72 crore. In this operation, he has
given raise numerous land scams across the state. made full use of the expertise of the Revenue

Emperor of Corruption 83
Department. Here is the story. Properties) records of 2011, 422.84 acres of survey
no: 874 were shown as government land. However,
The Success Story the records of 2016 show only 227.84 acres as
There is 416.26-acre government land (survey no: government land earmarked for the VANPIC project.
875) in Nijampatnam mandal of Guntur district. The What could have happened to the remaining 195
government had earmarked this land for the VANPIC acres in this survey number?
project, which is presently in a suspended mode due Here is the trick. Recently, the old survey
to certain legal issues. Despite earmarking, the land numbers were replaced by the new numbers and
was not allotted to the project. However, since the the MLA has taken advantage of this change.
allocation was done, it cannot be subjected to any However, according to the rules, a committee should
sale/purchase transactions. be formed to consider any change in the survey
However, the local revenue officials have flouted numbers. But, the revenue officials have changed
the rules and divided the survey no: 875 into eight survey numbers without appointing any committee.
sub-divisions. Out of the 416.26-acre land, the They have divided the survey no: 874 into survey
officials have shown 231.54-acre land into 'assessed nos: 1126, 1128, 1129, 1132...etc. Thanks to these
waste dry' (AWD) belonging to the government new survey numbers, 195 acres disappeared from
(under the survey no: 875). The same officials have the records all of the sudden. Those 195 acres are
shown another 313.60-acre land in the names of now being shown as land with title deeds and has
private individuals in 1B adangal (i.e. land record) been recorded in the names of proxies of the MLA in
again under the same survey numbers. 1B adangal. The value of this land is Rs. 39 crore and
The total amount of land (231.54 + 313.60) they the market value would be much higher.
have shown the survey no: 875 indeed exceeds the
actual amount of the land i.e. 416.26 acres available
in that survey number. The officials could be that
The following are the
open and that blatant. names recorded in the
The 313.60-acre land was shown in the eight adangal (land record) -
newly formed subdivisions, they are: 89.60 acres in
● Pantani Muralidhara Rao, Kuchinapudi
survey no: 875 (1), 61 acres in survey no: 875 (2),
Market Yard Chairman
57.50 acres in survey no: 875 (3), 52.50 acres in
survey no: 875 (4), 30 acres in survey no: 875 (5), ● His sons, daughter-in-law and close
12.50 acres in survey no: 875 (6), 8 acres in survey relatives
no: 875 (7) and 2.50 acres in survey no: 875 (8). ● SVRM College former principal
The revenue officials have stated in the 1B ● SVRM College Director Kesana Surendra
records that, these individuals have got the lands Babu and his family members
either through inheritance or DK-pattas or
● Satyadeva Prasad, Surendra Babu's
encroachment or purchase! Interestingly, all these
individuals are quite close to the MLA Satyaprasad.
brother who is working as DE in APIIC,
The market value for an acre land in this area is Rs. Visakhapatnam
20 lakh, that puts the value of 313.60-acre land ● Family members of Satya Prasad
would be Rs. 62.72 crore. Another 195 Acres ● All these people enjoy great proximity to
MLA Satyaprasad. Obviously, a land grab
Gobbled up Under New Format
of this scale could not have been carried
Besides the 313.60-acres, another 195 acres land
out without the active support of the
located in survey no: 874 was grabbed by using a
new format of revenue record. In the 22A (Prohibited
government.?

84 Emperor of Corruption
Rs. 100 Crore
Gitam Land Grab in Vizag
Late MVVS Murthy Encroached Upon 7.61 Acres
Land Allocated for the Housing of the Poor.

Andhra Pradesh is being rocked by land scams


which are taking place with the active support of
those in the highest echelons of the government.
Late M.V.V.S. Murthy, a former TDP leader and
relative of Chandrababu, who grabbed 55.24-acre
land at Rishikonda, had taken over another land that
was allocated to Rajiv Swagruha Corporation for the
purpose of the housing of the poor. Murthy had
simply taken possession of the land and
subsequently shot off a letter to the state
GO 219, allocating land to Rajiv Swagruha Corporation
government seeking the handing over of the land.
in 2009 for housing the poor in Vizag.
And the government was more than willing to
oblige him for the reasons that can be easily made
out by all of us.
There have been complaints that 55.24 acres of
Gitam University land actually belongs to the
government. The state government is encouraging
this daylight robbery by gifting Mr. Murthy with the
55.24-acre Rishikonda land, which was already in his
possession. Land grabbing itself is a big crime and Collector's letter of January 1, 2016, stating that it was
rewarding the grabber as is the case here, amounts not possible to give Rajiv Swagruha lands to Gitam and
to abetment of the crime by the government. urging the Rajiv Swagruha Corporation to step in and
Chandrababu Naidu is doing this crime with utmost take over the allocated land for proper use .
confidence that nobody can question him.

Collector Urges Swagruha then Vizag Collector and honest officer, made it clear
that the 1.95 acres of survey no: 16 and the 5.66
Corporation to Save Its Lands acres of survey no: 20 were allotted to Rajiv
Gitam University has brazenly occupied 7.61 Swagruha Corporation on February 20, 2009,
acres land allocated to Rajiv Swagruha Corporation through GO No: 219 and the transfer of this land to
in 2009. It has not only occupied this large tract of Gitam was not possible. He also wrote to the CCLA
land worth Rs. 100 crore but also asked the stating that it would be impossible to reverse the
government to hand it over. However, Yuvraj Singh, government's decision and hand over the land to a

Emperor of Corruption 85
Gitam University buildings in the land that was allocated for Rajiv Swagruha Corporation.

private university. He also suggested to Rajiv Does Govt. Give Land to Poor
Swagruha Corporation that it should wrest the
land from Gitam University and make proper Squatters?
use of it. Government officials are faulting the TDP
However, late Mr. Murthy succeeded in his government's decision to cancel the land allotment to
efforts as he had the strong support of government departments and weaker sections'
Chandrababu Naidu. The CM oversaw the housing society to benefit a private university. They
flagrant violation of rules and ordered the
are questioning why the government should give land
officials concerned to prepare proposals to take
at a nominal price to a private university which is
the land back from the housing corporation and
hand it over to his benami. As part of this collecting exorbitant fees. Would Chandrababu
process, Chandrababu government transferred government show similar benevolence towards the
the district Collector Yuvraj Singh within four poor and needy who were squatting on government
months of his joining of duties in Vizag. land and demanding its handover?

86 Emperor of Corruption
Rs. 69 Crore
6.19 Acres Gifted to Lingamaneni
Market value: Rs. 102 Crore Given away for Rs. 33 Crore
This is the 6.19-acre land that is opposite to Acharya
Nagarjuna University. This land is under bank
hypothecation. Before the state bifurcation, in 2014, this
land was valued at Rs. 35.59 crore. Post bifurcation, with
this area falling under the capital region, the land value
has shot up to over Rs. 102 crore. Despite such high
value, the chief minister is selling off this land for mere
Rs. 33 crore. Here are the details.
The AP CM Chandrababu Naidu and Lingamaneni
Ramesh formed a great bonding in grabbing the capital
region lands. Indeed, their bond goes back to more than
15 years. Way back in 2003, Chandrababu handed over company for mere Rs. 8 crore.
lands on the Vijayawada- Guntur highway to This land would have fetched over Rs. 100 crore way
Lingamaneni Ramesh. Indeed, these lands were back then, had it been developed and sold, according to
acquired for the housing of the low and middle-income officials in the know of things. Though the experts
group people. This favouritism testifies for cautioned the government against the sale-which has
Lingamaneni's proximity to Chandrababu. defeated the purpose of land acquisition- Chandrababu
Naidu did not pay heed to their advice.
For Public Purpose?
In 2001, Chandrababu decided to allocate 115.91 IJM-Rain Tree Park
acres of land for the 'Sites and Services' scheme of the It is an open secret that AP CM has business interests
Vijayawada-Guntur-Tenali-Mangalagiri Urban in Singapore and Malaysia. It was said that because of his
Development Authority (VGTM UDA). This scheme was business interests, Chandrababu Naidu had allotted
meant for housing for the people of low and middle- land for IJM-Malaysian Township in Kukatpally Housing
income groups. He then has picked the land that sits in Board in Hyderabad. Incidentally, in Amaravati too, the
between Namburu, Kaza and Konteru villages. This land IJM-Rain Tree Park Apartments came up on the 115.91-
indeed belongs to Associated Cement Company (ACC) acre, which VGTM-UDA gave away to Lingamaneni
and right opposite Acharya Nagarjuna University. The Lingamaneni real estate company. Apart from the
government has acquired this land in 11 months amassing wealth in the sale of apartments, the group is
through three notifications. renting out its flats to the government at very higher
rental rates.
In Guise of Housing Scheme...
Instead of using the land for the housing Lingamaneni...the Capital City Limit
development, the VGTM-UDA has palmed off the land to The lands of Lingamaneni Ramesh were kept out of
the Lingamaneni group within months. As part of the the scope of land pooling because of his proximity to
plan, the UDA has issued an auction notice for these the chief minister. Lingamaneni has literally set the limits
lands (RC No.365/2001 dated 13.03.2003) and called for for the state capital. Though his lands are located just a
bids on 27.03.2003. Though the AP High Court had few metres from the inner ring road, they were kept
stayed the auction, the state government sold the outside the purview of the land pooling.
115.91 acres land to the Lingamaneni real estate

Emperor of Corruption 87
Rs. 50 Crore Loot
'Bonda-giri' in Bezwada
Freedom Fighter's Land Grabbed Using Fake Documents
5.16 Acres Registered in MLA's Wife's Name

Notorious TDP MLA Uma Maheswara Rao cast his


eye on 5.16 acres of land in Vijayawada worth over
Rs. 50 crore. Because the owners are straightforward,
down-to-earth, simple people Bonda thought it
would be an easy task to take over the land. Bonda
Uma Maheswara Rao forged fake documents name
of his wife to show her as the owner of the land. The
MLA's men then proceeded to intimidate, assault the
rightful owner's legal heirs, this led to the legal heirs
to be driven away. Once the matter became public
and the APCID registered a case, the MLA began to
show his authority. He threatened the rightful owner
of dire consequences if he did not fall in line.

Suryanarayana had distributed the land among


Freedom Fighter's Family Struggling themselves in 1983.
However, while both the sons of the freedom fighter
Kasireddy Suryanarayana of Mogulrajupuram in Vijaya-
died In 1981, forged documents show that the distribution
wada is a freedom fighter and was jailed in Kurnool prison
took place in 1983.
for three years during the freedom struggle. In 1952, the
While Suryanarayana's younger son Ramakrishna, died
AP government gave him 10.16 acres of land in Singh
in 1981, his older son, Venkateswara Rao, died in 2013.
Nagar. Kasireddy Suryanarayana has two sons,
Later, this was changed to state that Venkateswara Rao
Ramakrishna and Venkateswara Rao. The latter did not get
sold his share of land to Abdul Mastan and Ramireddy
married, while the former is married and has children.
Koteswara Rao. Then, they forged documents claiming
While members of his family sold some of the lands in
that this land had been given on development to TDP MLA
instalments, they still owned 5.16 acres. Suryanarayana's
Bonda Umamaheswara Rao's wife Sujatha and five others.
older son, Venkateswara Rao died in 2013, while his
Registration to this effect was done in the Gandhinagar
younger son passed away in 1981. Fake documents were
Sub-Registrar's office in Vijayawada. A boundary wall was
created claiming that the property had been distributed in
erected and a shed built inside the compound with the
1983. TDP MLA of Vijayawada Central, Bonda
MLA's men keeping watch.
Umamaheswara Rao, cast his eye on this land, which is
Koteswara Rao had originally approached TDP MLA,
worth more than Rs. 10 crore per acre as of now and the
Bonda Uma Maheswara Rao's follower, corporator Mahesh
total value of this land would be over Rs. 50 crore. Bonda
to give him a loan against his house which he was willing
swung into action and forged documents with the help of
to pledge. Koteswara Rao was taken to the Gandhinagar
revenue and registration officials. He created counterfeit
Sub-Registrar's office in Vijayawada and made to sign on a
documents of agreement stating that both the sons of

88 Emperor of Corruption
Documents forged in
the name of Bonda Uma
Maheswara Rao's wife
Bonda Sujatha.

few documents. Later, he was told that he can't be given of the MLA's followers. He said that his signatures were
the required loan. However, the documents signed by misused for this purpose without his knowledge.
Koteswara Rao would come into play later. Following this revelation, CID registered a case against
These documents were then used to say that MLA Bonda's wife Sujatha, his primary associate Maganti
Koteswara Rao purchased this piece land from Babu and six others.
Venkateswar Rao, freedom fighter Suryanarayana's son.
Documents were further forged stating that Koteswara Bonda Associates Threatened Koteswara Rao
Rao had given this land on development to MLA Bonda With Koteswara Rao becoming a key player in this
Umamaheshwar Rao's wife, Sujatha and five others. A land-grabbing matter for MLA Bonda, his associates
document giving them the power of attorney was duly started threatening him with dire consequences.
registered. Abdul Mastan, another person mentioned in They offered him a huge amount to get out of the case
the transaction along with Koteswara Rao, is in a state of or face the repercussions. Fearing for life, Koteswara Rao
chronic illness and is unable to speak. sought police protection in a letter to Vijayawada police
commissioner Gautham Sawang on January 28, 2018.
Sandal Came to Light
When Freedom fighter Suryanarayana's grandson
Sureshbabu (Ramakrishna's son) went to their land last
March, to his shock he discovered a fence there. The MLA's Bonda Umamaheshwar Rao's family
men attacked him claiming that the land belonged to grabbed our land. This land
them following which Suresh Babu filed a complaint with was given by the government
the Singh Nagar police station. With no action being taken to my grandfather
on his complaint, he approached the CID wing six months Suryanarayana, a freedom
ago. fighter. When an MLA who's
The CID, in turn, started an investigation after filing a
meant to be protecting
case. They took Koteswara Rao, who signed the
documents giving the land on development into custody
citizens resorts to grabbing
and questioned him. Koteswara Rao replied that he knew the land of freedom fighters in the name of
nothing about this land and there was no question of his his wife, who do we turn to? The government
involvement in any registration. should render justice to us.
On being shown his signatures on documents, he -Kesireddy Sureshbabu
revealed to CID that he had been to the sub-registrar's
office on the subject of a loan which he sought from one

Emperor of Corruption 89
Rs. 40 Crore
Gift to Galla Family

The GO that allocated the land to


Mangal Industries, which belongs to the Galla family.

Chandrababu government has allocated the area as it is very close to the major transit points-
prime land in the famous temple town Tirupati to Renigunta Airport, Tirupati Bus Stand, Tirupati
Mangal Industries of Galla Jayadev, a TDP MP, at a Railway Station, Mangalam Bus Depot and
throwaway price. The land is located in Karakambadi Renigunta Railway Station. The market value of this
area on Kadapa-Tirupati Highway and its actual land is Rs. 2.5 crore per acre, however, the govern-
value is Rs. 43.38 crore. However, as part of his land ment allocated it for mere Rs. 22.50 lakh per acre.
gifting to his party leaders, Chandrababu Naidu has Galla Aruna Kumari, the mother of Galla Jayadev
allocated this land to Mangal Industries for just Rs. and a former minister, could not get this thing done
4.88 crore, following the GO No: 430, issued by the while she was a minister in Dr. Y. S. Rajasekhara
Revenue Department on November 12, 2015. Reddy's cabinet. However, Chandrababu did her this
It is very difficult to acquire land in Karakambadi favour without having any second thought.

90 Emperor of Corruption
Rs. 39.15 Crore
Siphoned Off Mortgaged Lands of Banks Gifted to Lingamaneni
The TDP leaders are gobbling up every inch of land Auction in spite of offer to clear loan!
in the capital area of Amaravati. Another sordid aspect
A Hyderabad-based company submitted a loan
of these leaders' activities- which so far focused on
application to the Syndicate Bank, Ongole branch, in
grabbing the lands of small and medium farmers- came
2014, seeking Rs. 31.75 crore to buy a spinning mill. It
to light. Now, they have started swallowing the valuable
offered 27.25 acres located in Doddavarappadu village
lands in the capital region mortgaged to banks.
of Prakasam district, as security. The value of the land
For a Lower Bid in the Auction... was estimated at Rs. 26.01 crore, while the value of the
plant and machinery was put at Rs. 15 crore. As an
In 2014, a Hyderabad-based additional guarantee, 6.19 acres of land- in survey
company applied for a loan from the numbers 213/A, 214 situated in an area facing
Banjara Hills branch of Syndicate the Nagarjuna University on the Guntur-
Bank and offered 3 acres of its Vijayawada national highway- was also
land- of survey numbers 230, offered. In 2014, before the bifurcation of the
231- located in ChinnaKakani state, the bank had valued this land at Rs.
village in Guntur district as the 35.59 crore. The company had also offered a
security. After due process, the personal guarantee of Rs. 13.13 crore and
bank officials have sanctioned a corporate guarantee of Rs. 42 crore.
loan of Rs. 9 crore. However, due Following the bifurcation and
to the unfavourable market announcement of the capital city, the real estate
conditions, the company's business value of the land offered as additional guarantee
took a beating. skyrocketed. In June 2015, the land was valued at Rs.
When the bank officials pressurised the 75 crore. However, stating that the company was not
company to pay up Rs. 36.37 lakh as interest, the firm paying its loan dues, the bank sent a notice on February
deposited Rs. 20 lakh and informed the bank that it had 18, 2016, and declared the loan as a non-performing
entered into an agreement with another company for asset. The company paid Rs. 10 crore stating that it had
the development of its 3-acre land, which it had the capacity to clear the entire loan amount and sought
mortgaged to the bank. The company stated that it additional time for clearing the remaining amount.
would clear the entire amount soon. Lingamaneni planned to grab this land especially
Lingamaneni's followers cast their eye on this piece since it was flanked on both sides by his own land. The
of land. Incidentally, the Lingamaneni firm owned 10 buzz is that the chief minister and another minister
acres right next to that land. The chief minister and a exerted pressure on the bank to auction the land.
cabinet colleague, along with Lingamaneni drew up an Accordingly, the bank had auctioned the land that
elaborate design to siphon off hundreds of crores of offered as the additional guarantee by the company.
rupees by developing a greenfield township in the 13 The present market value of this land is about Rs. 102
acres land. crore. The bank in its notice offered to sell this land for a
In violation of rules, they exerted pressure on meagre Rs. 33 crore. Instead of trying to sell the land at
bankers forcing them to put the three acres land for market rates and get a higher amount, the bank has
auction. The bank on its part did not attempt to recover prepared the ground to palm off the land to
the dues with due diligence. While the bank was to get Lingamaneni. Interestingly, the bank chose to ignore the
Rs.11.87 crore, it gave away the land to Lingamaneni for value of 27.25 acres of land offered as primary guarantee
mere Rs. 10.85 crore. The bank employees themselves situated in Doddavarappadu, not to speak of the value
admit that this land is worth over Rs. 50 crore in the open of the plant and machinery.
market.

Emperor of Corruption 91
Rs. 25 Crore
Mukteshwara Temple Land Grabbed

50.31 Acres Leased at Rs. 10 Lakh a Year


After successfully taking control of Sadavarti
Choultry lands, Chandrababu Naidu government has
eyed the lands of one more Temple. This time, the
government gave Rs. 25 crore worth endowment
lands located by the Krishna river in Krishna district to
a former TDP minister. In the pretext of tourism
development, the government palmed off 50.31
acres of land belonging to Mukteshwara Swamy
located in Mukthyala village of Jaggayyapeta mandal,
Krishna district, on a long-term lease to the former
minister. The details are-
According to endowment officials, 170 acres of
agricultural land in Mukthyala and neighbouring
villages belong to Bhavani Muktheswara Swamy
temple. 50.31 acres of this land is located by the river
in the village under survey numbers 149 and 150. The
former TDP minister submitted an application to the
government to develop a tourist resort on these
lands. The file was moved quickly through
government offices because of the clout the renewed on request. Local villagers state that the
applicant had. The former minister in question is former minister owns about 200 acres land next to
related to an MLC who had worked as a secretary in the temple land. Strangely, the TDP leader sought
the NTR Trust Bhavan, Hyderabad earlier and is temple land from the government for his tourism
known to be his political guru. project. This proposal came in for widespread
The issue was discussed in the cabinet, however, it criticism saying that the former minister was trying to
was put on hold for some time as the matter became grab temple land and merge it with his own, in the
public. However, the government has prepared the garb of a tourism project.
ground to quietly give away this land to the former
minister. Ignoring the officials at field level, some key
Playing With the
officials in the endowments department took Sentiments of Devotees
favourable decisions to toe the line of the higher-ups Official circles are aghast at the government's
in the government, according to sources in the proposal to give temple lands to a tourism project.
department. Non-vegetarian food and liquors are already being
served in many resorts to attract domestic and
Lease Amount Rs. 20,000 Per Year international tourists. There is seething resentment
Proposals were prepared to give 50.31 acres of and palpable anger against the government's
land on a 33-year lease at Rs. 20,000 per acre decision to allot the lands of Bhavani Muktheswara
amounting to Rs. 10 lakh a year. A provision was Swamy temple to the TDP leader in the guise of a
added stating that the lease agreement could be tourism project.

92 Emperor of Corruption
Rs. 25 Crore
Valuble Land for TDP Office
Annual rent of Rs. 1,000 only ● Lease of 33 years with a provision to extend it by another 99 years
The value of an acre land in Autonagar of 3.35 Acres in Amaravati
Vijayawada is about Rs. 1 crore. The AP government In the state capital of Amaravati, land worth crores
chose such a prime location to lease out the land to of rupees was given away to the ruling party for a
ruling Telugu Desam Party (TDP) at an annual rent of nominal price. About 3.35 acres valuable land in
Rs. 1,000 for the period of 33 years, extendable by Atmakur village of Mangalagiri mandal, Guntur district,
another 99 years. The land which was supposed to be was given for the construction of the TDP office for Rs.
allocated to industries was gifted to the party. 1,000 annual rent. The Guntur district collector
forwarded the application submitted by the Atmakur
In Autonagar of Vijayawada, the Water Resources TDP leaders to the Chief Commissioner of Land
Department has 93 cents (4,500 yards) land, which is Administration (CCLA). The Andhra Pradesh Land
worth over Rs. 25 crore. The city TDP president had Management Authority (APLMA), which functions under
submitted an application seeking this land for the party, the CCLA, examined the proposal and forwarded it to
according to the GO: 340 issued in July 2016. the AP government for approval. The Chandrababu
The Water Resources Minister Devineni Umama- government promptly gave its nod to the proposal.
heshwara Rao responded promptly to this application Thus, the party has acquired more than four acres prime
and cleared the proposal. The state IT Minister, Nara Lok- land effortlessly. This would be in addition to the land
esh laid the foundation stone for the proposed building. that would be allocated by the state government.

Rs 13.80 Crore
Gift to TDP Leader
15-acre Land Near Tirupati Worth Rs. 5 Crore Allotted for Mere Rs. 1.20 Crore
The state government is gifting Ministers or Lobbyists?
away valuable government lands
Karakambadi is located on the high-
indiscriminately to its leaders
way between Tirupati and Mangalam,
across the state. It gave away
right next to it is the Amararaja factory
valuable land to TDP vice-
and nearby is government land. The
president Koduri Balasubrama-
government decided to allocate 15
nyam for constructing Elite Super
acres of government land located here
Specialty Hospital. The govern-
in Survey No. 774/3 to build 500-bed
ment directed district authorities
Elite Super Specialty Hospital. Though the government
to give him land within Tirupati limits, which are worth
had claimed that the market value of the land in question
Rs. 15 crore at Rs. 1.20 crore. Dr. Manmohan Singh,
was Rs. 35 lakh, the actual price of an acre here is over Rs.
Special Chief Secretary of Revenue Department has
1 crore!
issued the GO MS No.266 on May 23, 2018.
But, Dr. Balasubramanyam lobbied with ministers Nara

Emperor of Corruption 93
Lokesh and Amarnath Reddy to get the land allocated to TDP government received huge kickbacks in this sordid
him at a meagre price of Rs. 8 Lakh per acre. As a result, affair. The GO spelt out that the land should be utilised
15 acre of land was allotted at a puny price of Rs. 1.20 within a period of three years and that groundwater
crore instead of the original Rs. 15 crore. And this resources should not be disturbed. It also said that the
allotment has caused a lot of resentment within the party land should be used only for the purpose for which it was
ranks. There was widespread criticism that bigwigs in the sanctioned.

Government Targets
Assigned Lands
Chandrababu government has made
the assigned lands of the poor an important target
The government sets to collect 20,603 acres
assigned lands for industrial purposes
"We will stop all the GOs issued
by the previous governments as
to the taking over of the lands of
the poor. We will repel the policy
to hand over the lands assigned
to the poor to the private
organisations. We will gather the
data of the all the assigned lands
that were taken back from the
Dalits in the name of
industrialization. We will render
justice to Dalits. We buy land and
allot two acres land to all the
landless Tribal families."
- The promise of TDP in
TDP Manifesto 2014 on the
assigned and patta
lands given to the poor.

The TDP has defaulted on this poll promise on the capitalists, who are loyal to the Chief Minister
assigned and patta lands, which mostly belong to the Chandrababu Naidu.
poor BC, SC and ST farmers. In the pretext of industrial The government is all set to take the lands for industrial
development, the party has been targeting the nodes at Visakhapatnam, Machilipatnam, Srikalahasti-
assigned and patta lands. It wants to retake the Erpedu and Donakonda. For these nodes, the
assigned and patta lands and gift them to the crony government is pooling 22,015.27 acres of patta lands,

94 Emperor of Corruption
20,603.65 acres of assigned lands and 18,696.46 acres confiscated lands shall be reassigned to the same poor
of other lands. The government has already identified farmers if they were alive, otherwise, the government
these lands and issued orders to the district collectors can assign the lands to somebody else. However, the
to transfer the collected lands to the AP Industrial state government is showing scant regard for the law. It
Infrastructure Corporation (APIIC). is even going against the promises that it has made in
it election manifesto, in which the ruling TDP had
Law Means Nothing? promised to purchase lands and distribute among SCs
According to AP Assigned Lands (Prohibition of and STs. However, the government has so far spent
Transfers) Act, 1977, nobody can purchase the assigned nothing on this scheme and even taking back the
lands of the poor. If anybody buys them, the lands, which would be their sole source of income in
government shall confiscate those lands. Such most of the cases.

Land Grabbing Details


Land to be collected for four industrial nodes (in acres)
Industrial Node Mandal Assigned Government Patta Land Total
Land Land
Visakhapatnam Rambilli -- 241.15 1,143.30 1,384.45
Nakkapalli
Phase-I -- 2,151.23 2,390.30 4,541.53
Nakkapalli
Phase-II -- 2,89.76 1,646.85 1,936.61
Machilipatnam -- -- -- 12,114.86 12,114.86
Donakonda -- 5,690.73 7,640.64 3,785.23 17,116.60
Srikalahasti Erpedu
Thottembedu 7,744.83 2,937.40 322.98 11,005.21
Thottembedu 7,168.09 5,436.28 581.75 13,184.12
BN Kandriga -- -- -- --
Total 20,603.65 18,696.46 22,015.27 61,313.38

Emperor of Corruption 95
No More Lease!
Selling the Lands Outright!
To enable his cronies to take possession of valuable
government lands, Chandrababu had enhanced the
maximum lease period from 33 years to 99 years. Not
satisfied with this, with a mala fide intention to give
away lands to his cronies with absolute freehold rights,
he has brought the concept of 'outright' sale into the
scene.
In the guise of industrial promotion, Chandrababu
government is forcibly taking away the lands of the poor
farmers and selling them off to business houses for
kickbacks. By using the Andhra Pradesh Industrial
Infrastructure Corporation (APIIC), the government is
gifting the lands at dead cheap prices. On April 4, 2016,
Chandrababu has issued the GO No: 48, which enabled
the APIIC to sell off the lands to companies on an
outright basis, instead of giving them on the lease. This
was how the government shifted its stands.
First, the state government has accepted to lease
lands for 99 years for the tourism projects. This was
notified through the new industrial policy of the state.
Then the government announced on April 29, 2015, that
the meeting of the State Investment Promotion Board,
which was presided over by the Chief Minister, could
consider the idea of selling off the lands to the GO No: 48 which gave powers to APIIC to
companies on an outright basis. In the meeting, some sell lands to the companies on an outright basis.
the industrialists complained the CM that it was difficult Now APIIC can sell land to companies and government
to start projects in the state unless the land was sold on will have no say on the future use of the land.
an outright basis. After listening to their complaint,
Chandrababu wasted no time. He took a decision to sell farmers misusing APIIC and selling them off to
the lands to companies on an outright basis instead of industrialists at cheaper prices. This is an important
leasing them. This decision was approved by the state design of Chandrababu's government to give away as
cabinet on April 2, 2016. As several senior bureaucrats many valuable lands in the state as possible to his
including Chief Secretary opposed this proposal, the CM cronies so that they can make huge money, for eventual
amended the Industrial Policy itself. The meeting of the kickbacks.
Empowered Committee of the Secretaries, which was The APIIC has gone berserk once the government
chaired by the Chief Secretary, also opposed this has issued the GO No. 48, which has enabled the
decision. However, Chandrababu proceeded with this corporation to sell the lands to companies on an
decision by issuing GO No. 48. outright basis. In Kakinada, it sold off the 1,563 acres of
land to a company, to which the land was previously
Industrialists Queue Up for Lands allocated on the lease basis. Now, the company wants
Generally, companies can have the absolute right no-tabs-attached registration for the land.
over the land only when they buy in the open market. The APIIC also sold 69.56 acres of land to four cell
However, the Chandrababu government made their life phone companies at the rate of Rs. 20 lakh per acre. It
easy by acquiring the lands at cheaper prices from sold 19.28 acres to a cell phone company, 15 acres to

96 Emperor of Corruption
another company, another 15 acres to another company Farmers' Lands for Sale!
and another 19.28 acres of to another industrial group. In
Gudivalli village of Anantapur district, APIIC sold 25 acres A higher official expressed concern about the way
of land at Rs. 10 lakh rate on an outright basis. the state government is selling off the farmers' land.
In Kurnool district, the government earlier allocated Even according to the SEZ Act, the lands shall be leased
623 acres of land to a company for the purpose of to business houses, but, now Chandrababu government
establishing a food processing park. Now, that company is selling the lands that are acquired from the farmers at
is also demanding for outright sale. A high official cheaper prices. This could turn into a huge problem in
confirmed that the government is going to sell the land
years to come as the government won't have any
to the company. According to the officials, now several
companies are making a beeline for the lands in Andhra control over the future use of the land and the
Pradesh; only to make the best out of Babu's deal-making companies can very much convert the land into real
capabilities. estate or any other purpose.

Assigned Lands Alienated


Chief Minister Chandrababu Naidu
has seen a great business opportunity in
the assigned lands, which were given to
Dalit farmers long ago by previous
governments. He has prepared a pukka
plan to get these lands at cheapest rates
possible.
Though the land pooling notification
clearly stated that the assigned lands
would also be compensated on par with
other lands, a concerted propaganda was
run in the villages of capital city region
saying that the assigned lands would not
be given any compensation. Fueling The land pooling orders issued by the government on January 1,
these fears, the state government has 2015, which has announced the package for assigned lands.
ordered the CRDA Commissioner N.
Srikanth on June 12, 2015, to return the
cheques that were supposed to be
distributed among the tenant farmers of
assigned and riverbank lands. The CRDA,
a depraved organisation which is
instrumental in implementing the real
estate schemes of CM Chandrababu
Naidu in the capital region, has
immediately sent back the cheques to the
government. This decision of the The package announced for assigned lands after the ruling party
government has sent shockwaves among operatives have concluded their land deals on February 17, 2016.
the farmers of assigned lands and once the well-coordinated propaganda have sent the
again showed that the government was ready to take farmers of the assigned lands into a panic mode. They
back their lands without paying any compensation. immediately sold their lands at depressed prices
The negative signals from the government and ranging between Rs. 5 lakh and Rs. 40 lakh per acre.

Emperor of Corruption 97
Once these transactions were concluded, the state Day Light Deception and Legal
government has announced the compensation
package for the assigned lands, which has sent the Robbery
rates of those lands through the roof in no time! Purchase of assigned land is against law. But the
TDP leaders have shown their panache in making
Heavy Competition the arrangements that would undermine the legal
Among TDP Bigwigs! ban. They have got an agreement from the Dalit
farmers stating the lands were sold to them before
Telugu Desam Party (TDP) leaders have 1954 and the sale process took place with full
competed with each other to pocket the assigned consent. They have paid 25% of the price initially
lands of the Dalits. The victims have told the media and got the transaction process photographed and
that the son of Chief Minister, Nara Lokesh and the vediographed. Then, they have told Dalit farmers
Water Resources Minister Devineni Umamaheswara that the remaining amount would be released once
Rao have bought their lands with the help of they submit their lands for the land pooling, or else
benamis and real estate brokers from Mangalagiri. they could keep their lands with them.
According to the farmers, these TDP leaders bought Some of the leaders have used the loopholes in
about 474 acres of assigned land in Tadepalli, the Registration Act, bribed the registration
Mangalagiri, Thullur and Amaravati mandals. The department officials and got the lands registered.
Agriculture Minister PratthipatiPulla Rao also Some have gone to courts and got the No Objection
bought assigned lands through his benami Certificate (NOC) for their registration and got the
Gummadi Suresh. Ruling party leaders thus have land registered.
competed with each other to buy about 1,848 acres The sub-registrar offices at Thullur, Mangalagiri,
of assigned land, which is worth Rs. 3,234 crore now. Amaravati, PedaKakani and Guntur have done 499

Tricks of Benami Trade


Though the purchase of assigned
lands is illegal, the benamis have
shown their panache in nullifying the
effect of the ban by implementing a
clear strategy. First, they have
submitted the documents for
registration and got them rejected by
the registration offices. They had
gone to courts and secured the NOCs
for the registration and then got the
lands registered in their names. In
Mangalagiri, a total of 560
documents came for assigned lands'
registration. As per the script, 333 of
them were denied by the registration
offices. According to the available
information, 107 of those documents
belong to an important minister.

98 Emperor of Corruption
registrations pertained 480 acres of assigned land. are small plots, often an acre, half an acre and below.
They also have made another 350 pending The initial orders of the government said
registrations pertained to sale transactions of 650 compensation would be given only assigned patta
acres of the assigned lands. According to available lands. The orders have made a further distinction
statistics, the TDP leaders have bought 348.46 acres between the lands that were assigned before and
of assigned land. They also have bought another after 1954. While the lands that were assigned before
1,200 acres through purchase agreements. 1954 were given 1,000 sq. yard residential plot and
These leaders have tricked the innocent Dalit 200 sq. yard commercial plot for each acre of arid
farmers and got the lands at cheaper prices. Today land, an acre of assigned Jareebu land got 1,000 sq.
the same land values about Rs. 1.75 crore per acre, yard residential plot and 450 sq. yard commercial
this effectively means the ruling party operatives plot. For the lands that were assigned after 1954, the
have profited about Rs. 2,775 crore by making illicit arid land farmers got given 800 sq. yard residential
transactions in assigned lands. By doing so, they also plot and 100 sq. yard commercial plot per acre and
have deprived the poor Dalits of their fortunes. the Jareebu landowners got 800 sq. yard residential
plot and 200 sq. yard commercial plot for each acre of
Land Pooling Notification Binned their land.
In the 29 villages of the capital city region, there
was a total of 2,028 acres of assigned land. Out of this, However, this order was not in effect for
1,278 acres of land was assigned in 1954. The until the TDP operatives completed their deals
remaining 750 acres were assigned to SC, ST, OBC in assigned lands.
farmers in several phases. Most of the assigned lands

Now, We Compensate You Generously!


The TDP government has once again Eventually, the government has decided to
declared compensation package in December regularize the sale transactions of the assigned
2015, this time a more generous one, once its lands and announced the compensation
leaders have concluded the purchase deals of package on March 17, 2016. It was clear that
the assigned lands. The Chief Minister has these decisions were made in order to benefit
taken this decision in a high-level review his son Nara Lokesh and other members of his
meeting in Vijayawada on December 13, 2015. inner circle who bought assigned lands on a
He has given the full entitlements to the new massive scale. The new rules would enable the
owners of assigned lands. The CM had issued new owners of the assigned lands- read TDP
an order to the Chief Commissioner of Land ministers, MLAs and MPs- to pocket all the
Administration (CCLA) to this effect. compensation.

Emperor of Corruption 99
Great Land Mutation Scam
Another Major Land Scam in State
First it was the Amaravati land scam, then Visakhapatnam land
grabbing scandal, followed by Sadavarthy land scam... A series of
land scams have left Andhra Pradesh shell-shocked. However, a new
land scam that can outstrip all the past scandals is taking place in the
state. The ruling party leaders are grabbing massive amounts of
government lands in the state in the name of 'deemed mutations.' The
TDP leaders are running this staggering scam with the help of
obedient field staff and officials of the revenue department. To
ensure the cooperation from the revenue department, the TDP
leaders are using all methods at the disposal, including coercion.

In the span of four months, a total of 1.17 lakh application if the information submitted is false. In the
deemed mutations of the government lands took place case of genuine applicants, substantiated by revenue
and this shows the extent of land grab that has been records, the Tehsildar should carry out the changes
taking place by the ruling party leaders in the state. Let (mutation).
us see what these deemed mutations are and how they If a revenue official approves of an application and
have become a boon to the ruling TDP leaders. carries out these changes (mutation) with his signature
and if any irregularities found in the matter, action can
Mutation...Deemed Mutation be initiated against him, on inquiry. If an application is
Mutation is nothing but the altering the land not processed within one month, the mutation is
ownership records as per the recent developments. In deemed to have been carried out as per government
revenue parlance, the change of the name of the owner directives. Revenue officials claim that the Tehsildar
in the land title deed and possession book (Adangal) is cannot be held responsible in the cases of deemed
called mutation. The MeeSeva centres routinely get a lot mutations which is why a number of ruling party leaders
of mutation applications every day. The concerned are exerting pressure on the Tehsildars to put
Tehsildar has to review the applications, verify the claims government lands in the deemed mutation category.
against available records and either confirm or reject the
application within 21 days. If the official in question has This Loophole is Their Strength
failed to act upon the application within 21 days, then If an application lies pending beyond one month,
that application would be considered as 'automatic then it gets automatic approval under the deemed
mutation and considered as 'deemed mutation'. mutation category and the revenue records reflect this
When the ownership of land changes either due to change. This clause has come as a boon to TDP leaders
inheritance or sale, the new titleholder applies for the who are now getting government lands registered in
change of the name of the owner in the land records. their name. The ruling party leaders are on a revenue
Some people even file mutation applications to take records altering spree across the state, thereby grabbing
hold of the government lands by submitting counterfeit the valuable government lands.
documents. For instance, let us say the government has
10 acres land in the survey no: 120 of Paritala village in Tehsildars Under Extreme Pressure
Nandigamamandal of Krishna district according to Ruling party leaders have come under severe
revenue records. A person named Narayana submits a criticism for exerting heavy pressure on Tehsildars, to
mutation application claiming the ownership of the land grab government lands. In chief minister's native district
stating that it is his ancestral property. The Tehsildar has Chittoor, a mandal level leader of the ruling party told a
to scrutinize his application and act on it after checking local Tehsildar that he would 'take care' of him and
the records within one month. He has to reject the sought him to register 10 acres of government land in

100 Emperor of Corruption


his name. He is believed to have told
Tehsildar, "You may have to follow Details of Mutations District Wise
protocol and incur other expenses, Implemented by District Tehsildars
record the 10 acres of government
District Mutations
land under my name and I will
protect you." The Tehsildar replied, "It
Implemented
would be improper on our part to by Tehsildars Deemed Total
register government land in your West Godavari 50,580 2,415 53,265
name based on fake documents. We Krishna 43,196 4,058 47,253
will get caught if there is an inquiry
in the future." East Godavari 46,877 4,520 51,397
The leader added: "You have not- Anantapur 64,411 6,561 70,972
hing to worry. Keep the application
pending for a month after which it Guntur 47,835 6,216 54,051
will automatically fall into the Vizianagaram 79,791 11,342 91,133
deemed mutation category in
revenue records and you can then
Srikakulam 93,875 16,222 1,10,097
add my name giving me ownership Kurnool 44,042 8,798 52,840
rights in the revenue records." The YSR Kadapa 27,229 5,976 33,205
helpless Tehsildar did as he was told.
When this incident was brought Visakhapatnam 52,984 12,199 65,183
to the notice of a senior official in the Chittoor 64,429 15,080 79,509
Revenue Department, he observed
that the deemed mutation GO itself Prakasam 45,312 15,702 61,014
was flawed. The official said, "The GO Nellore 19,003 7,962 26,965
should state that applications for
mutations should be scrutinized and Total 6,79,834 1,17,051 7,96,884
cleared within a given period. This
GO is contrary to that principle." made without going into the questions of ownership
and the proof of ownership. A senior IAS official
Story is Same in Every District of AP commented that even if an inquiry were to take place in
the future, the explanation would be that it was done
Two TDP leaders in Nellore district grabbed without any necessary proof.
government in the name of their benamis. Following the
footsteps of their leaders, their supporters too have 1.17 Lakh Mutations in 4 Months
grabbed the government lands. Reliable sources say Revenue officials are increasingly worried about the
that a TDP leader grabbed 50 acres of land in the name deemed mutations scams. They fear that this scam could
of his benamis in Sabbavarammandal of Visakhapatnam overtake the massive Visakhapatnam land scam. In 3-4
district. Nellore district has also seen many such cases of months, as many as 1.17 lakh mutations have taken
land grabbing. Similar cases of land grabbing were place in the deemed category. Recently, at a review
reported from Prakasam, Kurnool, Chittoor and meeting conducted by senior officials of the revenue
Visakhapatnam districts on a large scale. department, deemed mutations has become a hot topic.
Of the total number of mutations which were done The Tehsildars were told that it was wrong on their part
in Nellore, 29.53% were said to fall under the deemed to take refuge behind the GO in question to keep
mutation category, officials point out. There have been applications pending for more than a month to facilitate
many such cases of land grabbing in Prakasam district. automatic mutation. "Make sure this does not happen in
There have been 25.74% deemed mutations here. In future. This is not the right approach," the officials have
Chittoor district, 19% of mutations do not have the seal warned Tehsildars. Even though there is no official word
of approval of the officials concerned. Over the last four on this, revenue officials feel that a massive land scam in
months, 1.17 lakh deemed mutations have taken place underway and irreparable damage has already been
in different districts of the state. These changes were caused.

Emperor of Corruption 101


Unprecedented 'River-Grabbing' by CM!
150-Acres River Space Grabbed
Plan to Build Resorts, Pubs and Multiplexes
complained about this weird development to Sridhar
A fence with plastic
Babu, then Chairman of the Capital Region Development
wires and red flags
Authority (CRDA), he came up with confusing answers. He
installed by land
claimed the route was closed for the security of the Chief
grabbers right in the
Minister! Indeed that place has nothing much to do with
middle of the river, the movement of the Chief Minister. According to reliable
near Tummalapalem, sources, the encroachers have the unflinching support of
Tallayapalem and the CM and the Water Resources Minister. That's why they
Uddandarayanipale could encroach upon and islet and its surrounding river
m, warning the space so brazenly. The confusing response of CRDA
fishermen not to Chairman only shows that they were acting at the behest
come that way. of the government bigwigs.

Chandrababu Naidu and his party leaders have


grabbed not only lands, hills and tanks but the river too.
Unprecedented!
In an unprecedented development, the ruling party Never have we seen people
leaders- with the active backing from the Chief Minister- grabbing a river itself. When we
have encroached upon a three-acre islet in the midst of questioned this deed, the security
River Krishna and about 150-acres space around it. They people claimed Chandrababu has
have tried to expand the islet into a bigger island through his share in this. They also have
land reclamation process. Here is the full story. challenged us to try and do whatever we could to
A few businessmen, who belong to the ruling Telugu stop them. Ever since some unidentified persons
Desam Party (TDP) took control of the 3-acre islet in installed the red flags, we are not being allowed to go
March 2017, which is in the River Krishna, located very that side. About 500 families earn their livelihood
near to Tummalapalem, Tallayapalem, Uddandarayanipal- through fishing. They say that the government is
em and Guntupalli villages. This islet is considered a part going to develop the occupied river space into an
of the riverbed and is used by the villagers for general island with the help of imported machines from
recreation purposes. However, some TDP leaders cast Japan and Singapore. How should we live here if our
their eyes on the islet and wanted to convert it into an movement is restricted?
island by widening it further so that they could make an - Abraham, Fisherman, Guntupalli
entertainment hub with multiplexes, pubs, club and a
resort on that island. This fancy idea had the backing of River will Disappear!
the Chief Minister and the Water Resources Minister. Once In the name of a new capital,
the plan was hatched, they have created a fencing, our agriculture has been destro-
encircling about 150 acres river space with plastic wire yed. Now, they are getting ready to
and red flags. Once the fencing came up, the movements fill the riverbed and establish
of fishermen were prevented by the encroachers. The resorts and pubs. Four months ago,
fencing was protected by goons, bouncers and dogs. some people had tried to occupy 250 acres of lanka
The river grabbers imported land reclamation lands. They had to back off due to the collective
machinery from abroad so that they dug up the sand resistance of our village. Now, the same persons are
from the riverbed and enhance the size of the islet within coming aggressively to encroach upon river space.
no time. This machinery was deployed on the islet for
- Nadigam Suresh, Farmer, Uddandarayanipalem
quite some time. When the villagers and fishermen

102 Emperor of Corruption


Land Acquisition by Babu's Regime
2,01,030 Acres
The following are the details of the lands that are notified either to be acquired
to pooled by the state government in 13 districts of the state
District Acquisition/Pooling Acres Remarks
Visakhapatnam VUDA (Pooling) 543.15 GO issued
Vizayanagaram Tarakarama (Acquisition) 2,200 Acquisition completed
Bhogapuram (Acquisition) 2,600 Notification
Srikakulam Sompeta Thermal Plant (Acquisition) 972.69 Acquisition completed
Bhavanapadu Port (Acquisition) 4,923.15 Notification
Kovvada Nuclear Power Plant (Acquisition) 2,438.27 Notification
East Godavari Purushottapatnam (Acquisition) 207 70 Acres pending
West Godavari East Godavari displaced people (Acquisition) 2000 Decision
Highway (Acquisition) 1100 Notification
Guntur Capital (Pooling) 33,500 Pooling completed
Additional land for capital (Pooling) 14,000 Notification
Anantapur road (Pooling) 5,500 Notification
Krishna Bandar Port (Acquisition) 30,000 Notification
Kurnool Industrial Hub(Acquisition) 30,000 Acquisition completed
Amaravati-Anantapur Road(Acquisition) 3,000 Survey being done
Prakasam NIMS (Acquisition) 14,500 12,300 Pending
Donakonda Industrial Corridor (Acquisition) 25,886 Acquisition completed
Amaravati-Anantapur Road (Acquisition) 7,000 Survey being done
Nellore Damavaram Airport (Acquisition) 2,700 Notification
Anantapur Bell (Acquisition) 913 Acquisition completed
Customs and Excise Academy (Acquisition) 529 Acquisition completed
Kia Motors (Acquisition) 599.39 Acquisition completed
YSR --- --- ---
Chittoor National Highway-4 (Acquisition) 457 Acquisition completed
Express Highway (Acquisition) 2,454 Acquisition completed
Industries (Acquisition) 4,785 Acquisition completed
Handri-Neeva (Acquisition) 3,091 Acquisition completed
Kuppam branch canal (Acquisition) 732 Acquisition completed
Ceramic industry (Acquisition) 3,200 Acquisition completed
Yerpedu Industrial Zone (Acquisition) 1,200 Acquisition completed

Total 2,01,030.65

Emperor of Corruption 103


AMARAVATHI
THE CAPTURED CAPITAL!
Amaravati
World Class City
or
World Class Scam?
Amaravati- the new capital of Andhra Pradesh- This multilayered scam was brought out by
is supposed to be a global city of 21st century. the media with a series of stories that were
However, today it has become a scandal of global supported by irrefutable proofs. In the second
standards thanks to the greed of AP Chief phase of land grab, the government took away
Minister, N. Chandrababu Naidu. In the name of the fertile, multi-crop lands from the farmers in
developing a world-class capital, Naidu has run a the name of land pooling, while sparing the lands
world-class real estate scandal amounting to Rs. 1 belonging to his cronies. In return, the farmers
lakh crore. In this process, he has breached the were supposed to get the paltry extent of
oath of secrecy by revealing the vital information residential and commercial plots in their own
of the prospective capital city location to his villages. However, now, it becomes clear that the
coterie members, much before making the formal farmers are not going to get their compensation
announcement; and this amounts to "insider any time soon. Chandrababu did not stop with
trading". this; he has divided the capital region into
After disclosing the capital location to his different zones and brought down the value of
cronies and benamis, Chandrababu has made some lands by placing them under Agricultural
concerted efforts to bring down the value of Protection Zones while propping up the prices of
lands in Amaravati region so that his men could the lands of his cronies by intentionally placing
buy them at cheaper prices. As part of this, the them real estate enabled zones. You can see
government, with its media leaks, has created more details on the Zoning method in the next
hype around Nuzvid and Nagarjuna University as story.
the prospective capital city locations. Fooled by There is no end to the tales of Chandrababu's
the propaganda, people flocked these areas and open corruption and legal plunder. Though the
bought lands. As a result, the value of lands in 5,000-acre land is enough for the development of
Amaravati area has plummeted. Seizing the the capital city, Chandrababu insisted on
moment, Chandrababu cronies, his ministers, acquiring 34,000 acres of private land. He did so
MLAs, MPs and his party leaders bought lands in with the sole objective of taking the lands from
Amaravati region at throwaway prices, depriving the ordinary farmers and handing them over to
thousands of farmers of their future fortunes. The private players in return for kickbacks. As the
capital city location was officially announced on constructions started, the scope of scams has
December 28, 2014, only after completion of land further expanded. In the startup area project
purchases by Babu's cronies and this clearly alone, Chandrababu is going to make about Rs.
tantamounts to "insider trading" breaching the 66,000 crore. It's up to one's imagination how
"Oath of Secrecy". much more he can from entire Amaravati city.

Emperor of Corruption 105


Rs. 1,00,000 Crore
'Capital' Benefit!
CM Chandrababu Leaked Critical Information
of the Capital City Location to his Coterie Members and Benamis
25,000 Acres Were Bought by the Ruling Party Land Vultures
Rs.1,00,000 Crore Profit to Nara Lokesh, His Aides and TDP Leaders
AP Government Real Estate with Farmers' Lands
● Under the guise of building a world-class capital, the registrations, one can also find several registered
AP Chief Minister is running a huge real estate scam. GPAs. (GPA- General Power of Attorney)
To begin with, he has misled the people of Andhra ● Chandrababu Naidu has not only helped his cronies
Pradesh on the prospective location of the capital city and party leaders in buying valuable lands but also
with his media leaks, which have projected Nuzvid protected those lands from the so-called 'land
and Nagarjuna University areas as the prospective pooling'. While the lands of ordinary farmers were
capital city locations. However, he has revealed the taken by hook or crook, the lands of his cronies left
actual location-Amaravati region- to his cronies and untouched. The way the TDP government exempted
helped them to buy large tracts of land. From his the lands of Lingamaneni Estate and Ramakrishna
swearing-in on June 8, 2014, to the date of Constructions from the land pooling testifies for the
announcement of the new capital city location on bias. Though Lingamaneni Group and Ramakrishna
December 28, 2014, the cronies of the Chief Minister Constructions have bought 804.32 acres and 179.51
have bought thousands of acres of land in Amaravati acres of assigned land, both of them have not only
region. Thus, he has helped them to accumulate lands gone unpunished but also protected from the
worth Rs. 1 lakh crore at the cost of the fortunes of pooling'. Likewise, Chandrababu had also exempted
ordinary farmers. Isn't this the insider trading and the the 43-acre real estate venture of his party MLA
breach of oath of secrecy? Kommalapati Sridhar from land pooling, for the
● Due to this informational head start, the TDP leaders reasons best known to him.
could buy large chunks of land in the capital city ● Chandrababu has pooled a total of 53,743.49 acres for
region much before the formal announcement of the the capital city from the 29 villages located in Thullur,
location of the capital city. Most of these purchases Tadepalle and Mangalagirimandals. Out of this,
were done through the benamis. Besides the benami 15,010.03 acres are assigned and government lands

The note issued by the Water


Resources Department, which
shows that the Lingamaneni
guesthouse was constructed in
violation of River Conservation
Act.

106 Emperor of Corruption


and the remaining 38,737.46 acres are private lands. February 2016; 14 months after the first
● The CM has been bragging about his 'land pooling' announcement of the 'land pooling' so that the 'new
scheme being totally voluntary. However, in practice, owners' of the lands would be benefitted.
the pooling process was anything but voluntary. Babu ● Even according to international standards, it costs Rs.
has deployed quite a few tricks and conned the 30 lakh for the layout development for an acre land.
farmers to submit their lands for the 'pooling'. The way About 3,000 sq. yard space can be developed on each
the assigned and riverbank (lanka) lands- which acre. However, the government proposed to give only
mostly belong to SC, ST families- were snatched from paltry extent of 1000-yard residential plot and
the poor farmers speaks volumes about the atrocious 200/450-yard commercial plot per acre compensation
episode. To acquire the assigned lands, the ruling TDP to the farmers.
leaders have spread the rumours of government ● The cronies of Chandrababu who bought Amaravati
taking back the assigned and riverbank lands from the lands have also been favoured by 'Zoning' system,
present owners without paying any compensation. which was proposed by the Capital Region
The government officials, at the behest of the Chief Development Authority (CRDA). The lands of CM's
Minister, have further stoked the fears among the cronies were placed under real estate enabling zones
poor farmers by concurring with the ruling party's while the lands of ordinary farmers were thrown into
the-government-can-take-back version. The TDP- "Agriculture Protection Zone-1", which is supposed to
controlled media and TDP local level leaders played an have the least commercial value. While APZ-1 is meant
active role in waging this informational war on the for agricultural purposes, the APZ-2 is meant to host
poor peasants. Terrified by this propaganda, the Future Urbanised Developable Area. In APZ-3, almost
owners of 1,843 acres of assigned land and 1,514 acres all types of activities are allowed. The TDP leaders and
of riverbank land sold their land to TDP leaders at their benamis have bought about 10,000 acres of land
cheaper rates. Once these transactions were in APZ-3 and proposed urban area even before they
completed, the TDP government came up with a were zoned, as seen in the picture with dots.
generous compensation package for these lands in

The AP Government orders issued on January 1, The Government orders issued on February 17,
2015, which stated that assigned lands would 2016, specifying the compensation for
be pooled under the land pooling process. assigned lands after the conclusion of land
deals by TDP realtors.

Emperor of Corruption 107


The draft policy guidelines of the CRDA that classified the Capital city lands into different zones.

Agriculture Zone - 1

Agriculture Zone - 2

Agriculture Zone - 3

Present
Urban Area

Proposed
Urban Area

Proposed
Industrial Area

Dots represent
the lands of
cronies of CM

108 Emperor of Corruption


The Devil in Detail
The scam- which was started with the CM giving media leaks
as to the location of prospective capital city- has several phases.
Misleading the people was its major objective.
Amaravati, the new capital city of sunrise state up near Acharya Nagarjuna University (ANU) and then
Andhra Pradesh, is supposed to be a global city of gave huge publicity to Nuzvid as the prospective area of
the new capital. Their plan did the trick. While most of the
21st century. However, today it has become a
people made a beeline to those areas to purchase plots,
synonym to a scam of global scale thanks to the the Chief Minister and his men have bought thousands of
Chief Minister N Chandrababu Naidu. The scam acres of land in and around Thullur area through their
has started with the media leaks as to the benamis at throwaway prices. Once the state
government has revealed its original intention, several
prospective location of the capital city and farmers and realtors those who bought lands at ANU and
eventually grown many levels. Nuzvid areas have incurred heavy losses. The farmers of
The scam was incubated by none other than Amaravati region who sold away their lands at cheap
the Chief Minister N Chandrababu Naidu, his son prices have also cried foul. Chandrababu and his
benamis, who were privy to this information, have made
Nara Lokesh, a central minister close to them, a few lakhs of crores of rupees through this real estate
several state ministers, the MLAs of the ruling scam.
party and their benamis. Making full use of the
public office, the fraudsters have snatched away
Phase - II
After making the high decibel propaganda about the
about the 25,000-acre land from the poor, gullible
about-to-come-up world-class capital city at Amaravati,
farmers. The first thing these scamsters did was to the state government has brought forth a scandalous
bin the report of Sivaramakrishnan Committee, concept called 'land pooling'. The scamsters have
which has toured the state extensively, took decided to pool 38,737 acres of fertile, three-crop land
from 29 villages. When the farmers protested the
several factors into consideration and advised on
pooling, the government took the help of its friendly
the location of the state capital. This episode of media, which has created a near apocalypse atmosphere
capital scam is nothing but a series of scandals claiming that the farmers those who refuse to submit
that has become a global scam with several their lands for the pooling would be the ultimate losers.
Thus, the gullible farmers were coerced into the land
players of the ruling party, government and
pooling. Though the very name suggests that the
national and international players involving in it. pooling exercise was voluntary, in practice, it was
anything but voluntary. The government has openly
Phase -I used force to collect the lands from several unwilling
The bigwigs of the government had made up their farmers. On the other hand, the lands of Babu and his
mind to establish the capital city in Thullur area, which stooges were fully protected from the land pooling. For
falls between Guntur and Vijayawada. However, they instance, the capital region border stopped exactly 10
gave leaks to media on a few other possibilities to divert meters away from the Lingamaneni Estates, which
the attention of realtors from this region. First, they have belongs to Lingamaneni Ramesh, a close aide of
created an impression that the capital city would come Chandrababu Naidu. As the return gift, the Chief Minister

Emperor of Corruption 109


has got a classy guest house and also shares in those who lost their homes in the process of
Lingamaneni Estates. development of the capital city.
Chandrababu Naidu has not only ensured full
protection to the lands of his benamis but also made sure Phase - IV
that all development projects came up near to their Once the land pooling was done, the assigned lands
lands. The man who initially stated that the land pooling and riverbank lands of Dalits were annexed in a
was voluntary has shown his true colours eventually. The systematic manner. First, the government has created a
farmers who refused to part ways with their lands were propaganda wave that it was going to take away the
harassed by the government in many ways. The standing assigned lands without paying any compensation.
crop of some of the unwilling farmers was burnt down Several farmers who were worried about this
during midnights, the police instead of searching for development were further persuaded the government
culprits have further terrorised the farmers by slapping officials and the ruling party leader and made to yield
false cases against them. In some places, the lands of the their lands at minimum rates. Chandrababu and his
farmers who refused to surrender lands were leveled by benamis have pocketed away about 1,848 acres of
bulldozers without any prior notice to them. Those assigned land in this fashion. The government has
farmers have busted into tears as they could not identify refused to issue the compensation cheques to the tenant
their land plots after the levelling. The government has farmers of assigned and riverbank lands in the pretext of
also refused permission for agriculture in the 29 villages various pending litigations on those lands. Once all the
to discourage agriculture in the capital region. When the assigned and riverbank lands were secured by the CM
villagers went to High Court and got permission, they stooges, a generous compensation package was
were denied water and agricultural loans by the announced for those lands. The generous package now
government. benefits a lot of ruling party leaders, who bagged these
lands. Those who bought an acre of land at Rs. 5 lakh is
Phase - III now stand to get Rs. 1.90 crore for the same!
Chandrababu has announced a compensation
package to the farmers in lieu of their lands. He has Phase - V
announced both the cash and land compensation to the The zone classification of the capital region is another
farmers, according to their contributions of land. Though scam of global class. The classification was clearly against
he did not specify the exact figures, he had offered to the interests of the farmers. Because of this classification,
provide monetary compensation and the allocation of the lands prices have tanked all of the sudden in many
residential and commercial plots. But, this package has areas. The plot of land which was once valued at Rs. 4
turned out to be a total farce. He later told them that crore is not being bought for even Rs. 40 lakh. Even the
farmers would be given an annual compensation of Rs. plots of land that are located next to one another have
50,000 or Rs. 30,000 for 10 years period based on the type different prices based on the zones that they belong to.
their lands! They were also told that they could not The classification information, which was supposed to be
expect the plots of lands in their own villages. The Chief secret, has also been leaked to a privileged few, who
Minister has literally questioned the farmers how they bought or sold the lands based on this information.
could have such greedy expectations! It was learnt that Today, the lands of Chandrababu and his men are in the
the government was thinking to allocate the plot from high-value commercial zone and lands of ordinary
the lowlands and areas that have least commercial value. farmers are in the agricultural zone. Because of this
It was also learnt that the government would come up differentiation, the prices of Babu's lands have further
with several restrictions on the construction of buildings skyrocketed at the cost of farmers, whose lands have lost
in commercial and residential areas. The Chief Minister, their value overnight. The government is gambling with
who once promised new houses to the homeless in the the lives of the farmers and making a killing out of this
capital region, hasn't even shown alternative houses to game.

110 Emperor of Corruption


Rs. 66,000 Crore
Swiss Challenge Scam in Capital
Rs. 66,000 Crore - The Amount Set to be Siphoned off by Chandrababu and Co.

Part of the agreement showing how the Singapore The letter of then CRDA Principal Secretary Ajay Jain in which
consortium gets Rs. 5,786.60 crore in three phases, he objected the government leasing the land to Singapore
while the AP government gets only Rs. 446 crore consortium at Rs. 26.3 lakh per acre while the same land was
during same three phases. being leased out to hotels at the price of Rs.2 crore per acre.

Chandrababu and Co., who have amassed about pocket Rs. 66,000 crore in a single project of 1,691
Rs. 1 lakh crore by taking advantage of their privy to acres, how many lakh crores he could possibly make
insider information of the exact location of the from the entire capital city that is spread across
prospective capital city, are now planning to filch 54,000 acres?
another Rs. 66,000 crore with the pretext of Besides the initial 54,000 acres, the Chandrababu
developing Amaravati into a global city. Even the AP government is pooling another 14,000 acres and is
High Court objections to this fake Swiss Challenge also urging the centre to hand over the forest land of
method have failed to create any impact on the thick- 31,000 acres. Since the centre is wary of
skinned government. It went ahead with the further Chandrababu's proposal to gobble forest land, it has
proceedings despite the Court's stay on it and it has appointed a committee on this matter to look into
continued to keep the details of the method and the the possible use of forest land by the state
players participating in the tender opaque. The government. Chandrababu Naidu has promised to
Court's stay order could not change the build Amaravati into a global city. Trusting him, a lot
government's decision of keeping the details of the of people ranging from ordinary farmers to rich
process opaque. industrialists had donated money and bricks for the
The cost of this secrecy is Rs. 66,000 crore. Without new capital. Betraying their trust, Chandrababu is
investing a single paise, a management company- now more focused on making huge kickbacks from
whose details are not known to the public- and the each project of the capital city. His approach has
so-called Singapore consortium are set to make a turned Amaravati into a humongous real estate
hefty profit of Rs. 66,000 crore! While the project for the ruling party and means virtually
management company made up of the benamis of nothing to the people of AP.
Chandrababu Naidu and Singapore Consortium is
formed with the alliance of Ascendas-Singbridge and
Facts of the Scam
Sembcorp. The question is- if Chandrababu could Chandrababu government, which had taken

Emperor of Corruption 111


34,000 acres land from farmers, has alloted1,691 acres
land to a Singapore consortium for the startup area
project. Out of this, 371 acres have been earmarked
for roads, parks, sewerage and other public amenities.
In the remaining land, 1,070 acres are to be
developed and sold as plots and 250 acres would be
given to Singapore consortium for free of cost in two
phases.
1. The Singapore consortium and the Capital City
Development Management Company (CCDMC) Emmar real estate scam, which took place in
will form the Amaravati Development Partner Hyderabad during his last tenure. If they want,
(ADP), to which the government has handed over Chandrababu and his benamis can get the entire
1,691 acres land. The minimum rate of an acre was extent of land through this system of their
Rs. 4 crore, which means that the AP government management company.
has given 1,691 acres land worth Rs. 6,764 crore In prime areas of Amaravati, the value a sq. yard
for free of cost to the ADP. land is about Rs. 40,000. This puts the market value of
2. The state government will spend Rs. 5,500 crore an acre land to Rs. 20 crore. The CM himself declared
on water facilities, stormwater drains to prevent that the land value will go up to Rs. 50 crore in the
inundation and other basic amenities. Besides next 20 years. Going by his own calculations,
that, it will also invest Rs. 221.9 crore in ADP as the Chandrababu and the Singapore companies can get
equity of the CCDMC. This takes the government Rs. 53,500 crore by selling 1,070 + 250 acres. The
investment to Rs. 12,485.9 crore (Rs. 6,764 crore + Singapore consortium can make Rs. 12,500 crore by
Rs. 5,550 crore + Rs. 221.9 crore) in the startup area selling their part of the 250-acre land at Rs. 50 crore
project. Despite such a huge investment, the per acre. This means Chandrababu and his benamis
CCMDC gets a meager 42 percent share, which is are clearly going to make a minimum amount of Rs.
perplexing. 66,000 crore. If he can make such a staggering sum in
3. The Singapore consortium which is investing a a single project of 1,691 acres, how much money he is
mere Rs. 306 crore ends up with a 58 percent going to make from the 34,000-acre capital city is
share as per this plan. Besides that, the beyond anybody's imagination!
consortium will also get 250 acres of land in two
phases free of cost. Startup Area Project- Total Loss to AP Govt.
In the guise of management company To this project, the government has given the
handrababu Naidu's plan will be implemented under 1,691-acre land worth Rs. 6,764 crore. (1,691 acres x
the cloak of the 'management company'. The Rs. 4 crore). Besides this, the government is spending
company could show in its accounts that it had sold another Rs. 8,637 crore on the project. Here is the
the land for a little over the reserve price of Rs.4 crore. breakup of numbers: the government will spend Rs.
For i nstance, for an acre of land sold at Rs. 4.35 crore 5,500 crore on the development of infrastructure and
or Rs. 4.50 crore, the declared price could be white basic amenities, provides bank guarantees for Rs.
money; the company could sell the land at a much 3,137 crore loans and will invest Rs. 221.9 crore as
higher price since the present market rate of the land share amount of the CCDMC. This total expenditure
is Rs. 20 crore. Since these transactions are done by a amount Rs. 8,637 crore will be exempted from the
management company controlled by Chandrababu, white money that ADP would get by selling plots; and
there is no need for transparency. So, the company the remaining amount will be shared between the
can sell the land for about Rs. 20 crore and show a CCDMC and Singapore consortium at the ratio of
nominal price in its accounts. The remaining black 42:58. In other words, the so-called 'management
money will go to Chandrababu and Lokesh. This was company' will be a conduit to siphon off the black
the modus operandi adopted by Chandrababu in the money and account for the white money. Despite the

112 Emperor of Corruption


heavy investment, the state government is going to Rs. 4 crore minimum price (for 1,691 acres), it could
get nothing out of this project. The most interesting have got Rs. 6,764 crore. In such a scenario, the
part of the project is - the Singapore companies are government would not also have to spend Rs. 5,500
not going to invest a single penny nor are they going crore on the development of basic amenities, the
to construct a single building. They will develop 1,070 need for equity of Rs. 221.9 crore wouldn't arise and
acres land into plots and sell them. They will also the question of a bank guarantee for Rs. 3,137 crore
develop 8 lakh sq. meters commercial real estate on bank loans would also become redundant. Thus, the
the 250-acre land that they got and sell that as well. government could have benefited and there wouldn't
be any burden on public exchequer, the burden which
If Global Tenders Were Called! eventually would be transferred to the people in the
Had the government called for a global tender at form of higher taxes.

A Cheap Deal! Deceptive Agreements


Rs. 6,623 Crore Loss to Exchequer The AP state government continues to con
the people of the state with its deceptive
The government has shown its double agreements. It has changed the law to benefit
standards in the allocation of land in the capital the Singapore companies. It has altered its
city region. While it had allocated the land to previous GO stating that it doesn't have to
several organisations at Rs. 4 crore per acre, it enter into agreements with the companies
drastically brought down the price to Rs. 12.02 that have participated in the Swiss Challenge.
lakh for Singapore consortium. While the
government has allocated land to quite a few Why New Company?
organisations include SBI, LIC, NABARD, FCI, The Ascendas-Singbridge and Sembcorp
Syndicate Bank, Bank of India, New India of Singapore have formed the Singapore
Insurance Company, Hindustan Petroleum and Consortium and participated in the Swiss
Indian Oil Corporation at Rs. 4 crore price, it has Challenge. The government had issued a GO
brought down that price to Rs. 12.02 lakh for the in 2018 allocating 1,691-acre land to the
Start-up Area project, which is almost owned by consortium. The GO has clear policy
the Singapore Consortium and some unknown instructions that the state government should
entities. enter into the royalty, development and
Chandrababu government has not only shareholder agreements with these
reduced the land price but it also waived the companies. However, a new company named
stamp duty and the power of attorney stamp Singapore Amaravati Investment Holdings
duty to the tune of Rs. 47.05 crore. Chandrababu PET Ltd. was formed to remove all the
responsibilities from these companies. This
quite a few times has announced that the land
new company was registered in Singapore in
would be allocated to the Start-up Area project
2017. The latest GO, (GO NO: 84) made it clear
for the common price of Rs. 4 crore per acre.
that all the agreements must be entered with
However, in practice, he did exactly the
this new company. The Law and Finance
opposite. He has allocated 1,691-acre land to the Departments have raised objections as
Start-up Area project for mere Rs. 140.62 crore. entering into the agreement with the
Had he made the allocation for the prevailing company that hadn't take part in the Swiss
price, the land would have fetched Rs. 6,764 Challenge goes against the GO. 179.
crore to the government. However, the undersell However, the state government did not
has caused a direct loss of Rs. 6,623.38 crore to bother to care for those objections. It had
the state exchequer! issued GO:84 overriding the GO. 179.

Emperor of Corruption 113


Heritage Gets 14 Acre
in Capital Right Before
Announcement
Heritage Foods bought 14 acre land in Amaravati region
a month after Chandrababu Naidu became CM
Capital city location declared after this purchase and
this land was exempted from pooling

Chandrababu Naidu made up his mind to make Kanteru village of Tadikonda mandal. When the
Tullur area near Amaravati as the capital city. capital city location was declared, the CM has taken
However, he never let the people of the state know sufficient care to exempt the lands of Heritage as
his intention, but, leaked this critical information to a well as Lingamaneni Estate, which belongs to
few of his cronies, benamis and TDP leaders. Thanks Lingamaneni Ramesh, a close confidant of
to this informational advantage, the ruling party Chandrababu Naidu. The inner ring road has gone
leaders have bought about 25,000 acres in the right in front of these lands.
present capital city region and made about Rs. 1 lakh
crore. Sakshi daily has brought this mega scam with Hoax on Capital City Region
irrefutable proofs. Though Chandrababu knew the actual capital city
Heritage Foods- the family business of location right after coming into the power, he had
Chandrababu Naidu- has bought 14.22 acres land in intentionally circulated hoaxes on prospective

114 Emperor of Corruption


The lands bought by Heritage Foods in
Kanteru village of the capital region.

locations of the capital city with the help of his Exemption from Polling
captive media. At least three places Nagarjuna
The AP government had issued the notification for land
University area of Guntur district, Nuzvid
pooling on January 1, 2015. It has merged a total of 29
mandal of Krishna district and Elur city in West
villages from Tullur and Mangalagiri mandals of Guntur
Godavari were propagated as the prospective
locations. district. However, Kanteru village of Tadikonda mandal- in
These hoaxes have boosted the land rates in which the lands of Heritage Foods and Lingamaneni
the respective areas as the people have flocked Estate- was not added to this list of villages.
to buy lands in those locations. Once The land pooling range covered Nidamarru village of
Chandrababu and his cronies completed the Mangalagiri mandal, but stopped right at the boarder of
land purchases in Amaravati region, he has Kanteru village. Thus, Chandrababau Naidu has ensured
announced the location of capital city region on that their lands were fully protected from the land pooling.
December 28, 2014. This decision of the It is a known fact that Lingamaneni Ramesh and his brother
government has created a sudden surge in the Venkata Surya Rajasekhar are quite close to the AP CM. The
land prices in Amaravati region. The price of an latter indeed has converted the illegal palace of
acre land has shot up to Rs. 3 crore to Rs. 5 crore Lingamaneni Ramesh into his official residence. While the
from previous Rs. 5 lakh. This has helped the AP government was adamant about taking the lands of
cronies of Chandrababu Naidu made huge ordinary farmers at any cost, the lands of the bigwigs were
fortunes at the expense of ordinary farmers. completely protected.

Inner Ring Road Aligned with Heritage Interests


As part of the master plan of capital city, a 250- Estates now conveniently sit on the opposite
feet wide inner ring road was proposed and that sides of this road, however, they were not pooled
road is going right in front of Heritage lands. The for the road. This clearly shows that the alignment
road is going through survey no: 27/3 in Kanteru of the outer ring road was drawn to serve the
village. The lands of Heritage and Lingamaneni interests of the CM and his cronies.

Emperor of Corruption 115


Within a Month
Heritage Foods has started buying lands in 19.68 lakh. These lands belonged to another
Kanteru village a month after Chandrababu Naidu resident of Vijayawada Chiguripati Venkata
became the CM of Andhra Pradesh. Here is the series Giridhar. He also got these under the
of incidents… arrangement GPA not so long ago.
■ Heritage Foods has purchased lands in Kanteru ■ On the same date, the company also bought 4.55
village. It has bought these lands in different acre land of survey numbers 56 and 63/1, 63/2B
survey numbers from different parties. for Rs. 36.40 lakh. These lands were bought from
■ On July 7, 2014, Heritage Foods bought 7.21 acres two companies - Lingamaneni Projects Private
land located in survey numbers 27/3B, 22/2A, Ltd. and Lingamaneni Infocity Private Ltd.
63/1, 62/2B and 27/3A. These lands were ■ Thus, Heritage Foods has bought a total of 14.22
purchased for Rs. 67.68 lakh from Movva acres in Kanteru village for mere Rs. 1,23,76,000.
Srilakshmi, who is a Vijayawada resident and got Though all these lands were under the purview of
these lands under GPA a little recently. Tadikonda Subregistrar office, the registrations
■ On September 8, 2014, the company bought 2.46 were strangely done in Pedakakani Subregistrar
acres land of survey numbers 56 and 63/2B for Rs. office.

World Bank Pulls Up Chandrababu Govt


No Transparency in Tenders of Capital City Roads
There is no transparency in the
tenders of roads of the capital city and it
appears that gross irregularities have
taken place, said the World Bank in its
sharp reaction to Chandrababu Naidu
government's tender process for
Amaravati roads. The World Bank has
sought details on discrepancies and
irregularities in tenders from Capital
Region Development Authority (CRDA).
When it has received the details, the
World Bank was shocked at the
explanation of the CRDA. The urban
development body said it took six
monthstime for them complete the
tender process and it would take another
six months if these tenders were to be
cancelled and fresh ones are to be called;
and this could result in an increase of the
estimated costs.
The World Bank had in principle
agreed to lend Rs. 3,300 crore for the
development of roads in the capital city. It

116 Emperor of Corruption


is widely known that farmers in the region told an Three Roads to One Company
inspection team of the World Bank that their agricultural
World Bank had approved Rs. 713.70 crore loan for
land was forcibly taken away from them. The inspection
development of three roads in the capital city. They are:
team had told World Bank in its report, to reject the loan
E-6 road under package 5, E-12 road under package 6
till problems of these farmers were resolved and that
and S-11 road under the package 7. In a questionable
there was truth in their complaints.
move, the ADC awarded the contracts of all three works-
The World Bank has approved 30% work of the
Rs. 275.09 crore worth work of E-6, Rs. 226.67 worth work
development of capital roads. However, the CRDA has
of E-12 and Rs.279.37 crore worth work of N-11- to one
called for the tenders for 100% work and awarded the
joint venture named NCC-RVR Project Ltd.
contracts as well. CRDA only later did inform the Bank of
The ADC has not only awarded the contracts of three
this development. This entire process has left the World
packages to NCC-RVR Project Ltd. but also awarded it at
Bank shell-shocked. On November 20, 2017, the World
5% excess cost. When ADC has forwarded these details
Bank sent several questions to the Amaravati
to World Bank officials, they have questioned the ADC
Development Corporation (ADC), which functions under
how it could award the contracts of all three packages to
the CRDA.
a single joint venture company that too at 5 percent
The Bank questioned how it could give the works of
excess rate. The Bank officials made it clear that they
all three packages at 5% excess to the same joint
believe that irregularities had taken place in the tender
venture company. As per EPC (engineering, procure-
process and sought a detailed explanation from the
ment and construction) procedure, if an excess of 5% is
CRDA. While answering to the World Bank, the chief
quoted, tenders would have to be cancelled and called
engineer of ADC came up with a weird explanation. He
again. The World Bank expressed its astonishment at the
said, it took six months for them to complete the tender
AP government had gone ahead in spite of this clause.
process and the estimates of tenders had been based on
It also has raised serious objections to the rates
2016-17 schedule costs, and it would take another six
being quoted similarly in all three packages. The Bank
months if these tenders were to be cancelled and fresh
has questioned if the tender process was transparent
ones are to be called.
enough and pointed out to the irregularities and
He also stated that the overall cost-including labour,
violations have taken place and questioned the
material and labour- if the tender process is to be
Amaravati Development Corporation Ltd. as to whether
undertaken once again. Officials say that with no
it had taken note of such violations and irregularities or
clearance coming from the World Bank on this, there is
not?
uncertainty about the future of this project.

Emperor of Corruption 117


Capital Culprits
1. P. Narayana 2. Sujana Chowdary
Position: The Minister of Position: MP, Rajya Sabha
Municipal
Administration, Urban
Planning and Land Purchased : 700 Acres
Development Amount Paid : Rs. 35
crore
Present Value : Rs. 700 crore
Land Purchased : 3,129 Acres (including
assigned lands)
Amount Paid : Rs. 432 Crore Benamis:
Present Value : Rs. 10,000 Crore and
above Yalamanchili Jatin Kumar: Brother of Sujana
Chowdary
Benamis: Sri Kalinga Green Tech Chemicals: This
Akula Munisankar: He is an electrician in company belongs to Harshananda, who is a
Narayana Medical College, Nellore, and a personal assistant to Jatin Kumar.
distant relative of P. Narayana. He is related Yalamanchili Janardhana Rao:
through marriage to the minister and is a Father of Sujana Chowdary
brother-in-law to the minister.
Y. Sivaramakrishna:
Ravuri Sambasiva Rao: He is the brother-in-law Brother of Sujana Chowdary
of P. Narayana and his 'Man Friday'.
Sambasiva Rao is the caretaker of all the Areas of Land Purchas:
financial affairs of the minister. Gudimetla of Chandarlapadu mandal, Keesara,
Veerullapadu of Kanchikacherla mandal of
Potturi Prameela: She is a confidant of Krishna district and Mangalagiri mandal of
Narayana and manages Narayana group Guntur district.
colleges in Karnataka and Tamil Nadu.
Apart from these important benamis, several
employees of Narayana group and confidants of
the minister bought lands and took part in the
scam.

Areas of Land Purchase: Mandadam,


Lingayapalem, Rayapudi,
Uddandarayunipalem, Borupalem of Thullur
mandal near Core Capital region.

118 Emperor of Corruption


3. Nara Lokesh (including assigned lands)
Amount Paid : Rs. 5.5 Crore
Position: Son of Chandrababu
Naidu and IT & Present Value : Rs. 82.5 Crore
Panchayat Raj Benamis:
Minister
Ravela Santi Jyothi: Wife of Kishore Babu
Land Purchased : 500 Acres Maitri Infra: A company of Tella Srinivasarao, a
Amount Paid : Rs. 50 crore confidant of Ravela Kishore Babu
Present Value : Rs. 650 crore Areas of Land Purchase: Kuragallu and
Navuluru of Mangalagiri mandal.
Benamis:
Vemuri Ravikumar Prasad: A friend of Lokesh
Vemuri Anuradha: Wife of Vemuri Ravikumar 6. Murali Mohan
Lands were purchased in the names of Goshpadi
Greenfields Pvt. Ltd., Future Space India Pvt. Position: Member of Parliament
Ltd. and Net India Pvt. Ltd. Land Purchased : 53 Acres
Areas of Land Purchase: Dharanikota and Amount Paid : Rs.16 Crore
Vaikuntapuram of Amaravati mandal. Present Value :Rs. 212 Crore
Area of Land Purchase:
Kunchanapalli of Tadepalle mandal.
4. Prathipati Pulla Rao
Position: Minister for Agriculture 7. Kommalapati Sridhar
Position: MLA of Pedakurapadu
Land Purchased: 196 Acres
(including assigned lands) Land Purchased : 42 Acres
Amount Paid : Rs. 39 Amount Paid : Rs.1.26
crore Crore
Present Value : Rs. 784 crore Present Value : Rs.210 Crore
Benamis: Areas of Land Purchase: Lands adjacent to
Gummadi Suresh: A confidant of Pulla Rao Amaravati Township at Yerrabalem village. These
lands were exempted from the land pooling and
Venigalla Raja Reddy: A confidant of Pulla Rao
Nara Lokesh got the shares in the venture as
Venkayamma: Wife of Venigalla Raja Reddy quid pro quo .
Areas of Land Purchase: Venkatapalem,
Mandadam, Uddandarayunipalem and
Rayapudi of Thullur mandal.

5. Ravela Kishore Babu


Position: Former Minister for
SC, ST Welfare and
Empowerment
Land Purchased: 55 Acres

Emperor of Corruption 119


8. Kodela Siva Rama Krishna Son of Payyavula Keshav, GPA was made
before the announcement of Capital region
Position: Son of AP speaker Kodela Siva Prasad and the registration was done after that.
Rao
Land Purchased : 17.3 Acres Area of Land Purchase: Inavolu
Amount Paid : Rs. 93 Lakh
11. Lingamaneni Ramesh
Present Value : Rs. 18.4
Crore Position: A confidant of CM
Chandrababu Naidu
Benami
Sasi Infra: This company belongs to Siva Rama Land Purchased : 804 acres
Krishna’s personal assistant Gutta Profit : Rs 4,000 Crore
Naga Prasad
Area of Land Purchase: Dhulipalla of He has purchased 168 acres at the price
Sattenapalli mandal ranging between Rs. 10 lakh and Rs. 40 lakh and
clubbed them into a single estate.
The entire Lingamaneni Estates has been
9. Dhulipalla exempted from land pooling. The border of the
capital region has stopped in Kaza village just 10
Narendra Chowdary meters away to Lingamaneni Estates.
Position: MLA of Ponnur
In return, Chandrababu Naidu has got
Lingamaneni Guest House and Lokesh was
Land Purchased: 3.89 Acres given shares in Lingamaneni Estates. About 300
(Encroachment of another 50 acres of land of poor farmers has been
acres rivulet poramboke land encroached upon and clubbed into Lingamaneni
unofficially) Estates.
Present Value : Rs. 5 Crore

Benami 12. M.S.P. Rama Rao


Devara Pulliah: A close relative of Dhulipalla Position: Relative of CM Chandrababu Naidu
Narendra Chowdary
Land : He was allocated 498. 83 Acres
Area of Land Encroachment: Nambur
Amount Paid : Rs. 4.98 Crore
Present Value : Rs.300 Crore
10. Payyavula Keshav
Position: Ruling party MLC The lands were allocated in Jayanthipuram of
Jaggayyapeta mandal to Visakha Bottling
Company Fertilizers and Chemicals Ltd.
Land Purchased : 4.09 Acres Jaggayyapeta was brought under the range of
Amount Paid :Rs. 12.27 the CRDA to enhance the value of these
lakh lands.
Present Value : Rs. 8 Crore
Benami:
Payyavula Vikrama Simha:

120 Emperor of Corruption


A World Class Scam
A Perfect Drama of an
Opportunist Legal Plunder
Director: Babu / Actors: Benamis
 Chandrababu is the director and Lokesh is the
producer of this drama.
 Capital city lands were snatched away by the
cronies of Babu and their benamis.
 Narayana, Sujana Chowdary, Murali Mohan,
Prathipati Pulla Rao, Devineni Umamaheswara Rao,
Ravela Kishore Babu…and quite a few other
cronies have benefitted from the real estate
transactions that were made possible due to the
insider information they had privy to.
 Narayana (3,600 acres), Sujana Chowdary (700
(196 acres) have profited in thousands of crores of
acres), Nara Lokesh (500 acres), Prathipati Pulla Rao
rupees.

All Started with Media Leaks


 Sivaramakrishnan Committee recommendations
on the location of the capital city have been
ignored.
 The ruling party has spread misinformation
through its media outlets, which hyped Nuzvid
and Nagarjuna University areas as the
prospective capital locations. This has created a
real estate buzz in those areas. As a result, the
land prices of Amaravati area have plummeted.
 When realtors and the general public were busy
buying lands in these two areas, Babu and his
cronies purchased huge tracts of land in
Amaravati region at throwaway prices.
 Once the true location of the capital city
announced, the gullible realtors and the people
who bought lands around Nuzvid and Nagarjuna
University areas incurred heavy losses. The
farmers who sold their lands in Amaravati area
realised that they were entrapped.
 By then, Chandrababu, his stooges and their
benamis made a killing of Rs. 1 lakh crore.

Emperor of Corruption 121


Land Pooling - A Scandal of
Global Scale
● Chandrababu has
executed a major
scandal in the
name of 'Land
Pooling'.
● He decided to
collect 38,737
acres fertile,
multi-crop land
from 29 villages.
● Initially, most of
the farmers refused to part ways with the land, their
sole source of livelihood.
Babu Promises, Then Fails ● Chandrababu has used several tactics to trick the
● To entrap the farmers of the capital region, reluctant farmers. He made benamis of his party
Chandrababu made several false promises. leaders voluntarily offer their 5,000 acres of land for
land pooling. He then used his media friends to
● He boasted that he was going to build a create a propaganda wave to make farmers believe
world-class capital city. that those who refuse to surrender their lands would
● He promised to waive off the farm loans up be the ultimate losers. This did the trick. The
to Rs. 15 lakh for the farmers of the capital government and its media could make the farmers
city region. But, later, he backtracked from cede their lands 'voluntarily'.
the promise and even commented, "Farmers ● He also used the caste card to 'pool' the land. He
cannot become this greedy. When did I tell divided the resisting farmers based on the caste lines
them that I would waive off all the farm by sending the ministers from the respective castes
loans? I did whatever I have promised to do." to counsel the farmers and finally they were made to
● He promised a monthly pension of Rs. 2,500 give away their lands.
to tenant farmers and farm labourers of the ● Though the government said the land pooling was a
capital region, but none got the pension so voluntary process, it was anything but voluntary.
far. While the government openly used force to collect
● Chandrababu promised the skill training and the lands from reluctant farmers, the lands of Babu
jobs to the unemployed youth of the capital and his cronies were fully protected from the
region. He got them trained by a nameless pooling. For instance, the capital region limit stopped
company and finally told them that there exactly 10 meters away from the Lingamaneni
were no jobs. Estates, which belongs to Lingamaneni Ramesh, a
close aide of Chandrababu Naidu. As a return gift, the
● Many a time, he said that not even a single
Chief Minister got a palace-like guest house and
village would be removed; now three villages
shares in Lingamaneni Estates.
are going to be wiped out.
● Babu not only ensured the full protection of the
● He promised fee reimbursement to all the
lands of his cronies and their benamis but also
students, but not even a single student
ensured that the development projects are
received the reimbursement so far.
established near their lands.

122 Emperor of Corruption


Compensation - an Open Fraud rehabilitated in the same
village?
● Chandrababu announced the cash compensation and ● He also promised to
two plots of land (one residential and one provide housing to every
commercial), for every acre of land given by the houseless family in the
farmers. Now, there is no clarity as to the location of capital city region.
the plots or the time frame within which the However, he hasn't provided houses to those who
allocation will be completed. lost their homes due to the inauguration ceremony of
● Chandrababu was never clear on the compensation the capital city, let alone the giving homes to the
amount and finally said he would give an annual homeless.
amount of Rs.50,000 or Rs. 30,000 for 10 years period ● Chandrababu told the farmers that the residential
based on the land type. Taking advantage of the and commercial plots they were going to own would
supposed ambiguity on the differences between dry make them millionaires overnight. However, now, the
(jirayat) lands and wet (jareebu) lands, the farmers are being allotted plots in lowland areas,
government is creating further entanglements in which have no commercial value.
deciding the status of the lands so that it could delay ● Chandrababu once promised to give first preference
the payment of compensation. to the residential and commercial buildings of
● Chandrababu initially promised to give residential farmers. However, he is now imposing several
and commercial plots to the farmers in their own restrictions on the construction of buildings in
villages. After completion of the land pooling, he is commercial and residential plots that are going to be
questioning the farmers how could they expect to be allotted to the farmers.

Cases, Threats and Harassment Assigned Lands of Dalits Grabbed


● Chandrababu-who initially said the ● The lands of Dalits
entire land pooling process was were robbed off by
voluntary- showed his true colours the ministers, MLAs
eventually. and the ruling party
● The farmers who refused to leaders.
surrender their lands were constantly harassed by the ● First, the government
government. In some cases, the standing crop of the created a
unwilling farmers was set afire. The police instead of propaganda that the The GO that was showing the
compensation
identifying and arresting the culprits slapped false cases government was
against the very farmers who lost their crops and going to take away lands assigned to Dalits without
silenced them. paying them any compensation.
● In some places, the crops and plantations of farmers ● Dalit farmers who panicked by this propaganda were
were levelled by bulldozers without any prior notice. further pressurised by the TDP leaders and were finally
Many farmers were unable to identify their land plots made to yield their lands at the rates starting from Rs. 5
after the levelling and busted into tears. lakh per acre. Chandrababu and his cronies pocketed
● The government refused to permit agricultural activities about 1,848 acres of assigned and riverbed lands in this
in the 29 villages of the capital region. This was done to fashion.
discourage the agriculture in the region. When the ● Once all the assigned and riverbed lands were secured
aggrieved farmers approached the High Court and by the CM and his party men, a generous compensation
secured permission, the state government killed the package was announced for surrendering those lands.
court order by denying them the irrigation water and The package benefitted the TDP leaders who have
agricultural loans. The government did not even permit bagged these lands. Those who bought an acre land at
the soil fertility tests. Rs. 5 lakh is now going to get Rs. 1.90 crore for the same!

At the End…: In the name of building a world-class capital city, Chandrababu and his cronies have made about
Rs. 1 lakh crore. The state government has, so far, organized three inaugural ceremonies for the capital city. Still,
the lackluster efforts of state government failed to get any support from the central government. Prime Minister
Modi, who was the chief guest of one of the inaugurations, was expected to announce a package for the new
capital. However, instead of the package, he gave the state only four earthen pots filled with mud.

Emperor of Corruption 123


The
Captured
Capital
Andhra Pradesh new capital is now in the lands without paying any compensation. The
clutches of land vultures, which also hold high 'enterprising' party leadership has used all
offices in the government. Not just a few, but means at the disposal and succeeded in
the entire ruling Telugu Desam Party- led by its making the poor Dalit farmers give up their
supremo Chandrababu Naidu- has attacked lands, which in many cases the only source of
the new capital city and grabbed substantial livelihood to those farmers. Thus, they could
amounts of lands. At the expense of poor and buy at least 25,000 acres land in 29 villages-
gullible farmers, they could these lands which are now part of the new capital region-
registered in their names and of their benamis. at very low rates.
Chandrababu Naidu has hidden the Once the location of the capital region ann-
decision that was taken in the very first cabinet ounced, the prices of the lands in Amaravati
meeting as to the location of the new capital area have skyrocketed overnight. An acre land
city and intentionally created confusion among which was bought at Rs. 4 lakh is now valued
the people with his oft-changed statements at Rs. 4 crore. This is the story of Chandrababu
and media leaks about the prospective and Co. who have pocketed Rs. 1 lakh crore
location of the capital city. He has terrified the through a scandal that rivals the major scams
Dalits by spreading the rumours that the in the history of Independent India. What is
government was going to take back assigned presently known is only the tip of the iceberg!

124 Emperor of Corruption


Nara Lokesh
His Benami Inc.
Benamis: Vemuri Ravi Kumar Prasad
and Vemuri Anuradha
Purchased Land: 500 acres
Amount Paid: Rs. 50 Crore
Present Value: Rs. 650 Crore
The Chief Minister's son Nara Lokesh has taken
up 'execution leadership' of the capital scam. He has
purchased about 500 acres of land in the name of
different companies with the help of his benami
Vemuri Ravi Kumar Prasad in the capital region. They
initially have entered into agreements with the
farmers by paying the advance and went for
registration once the capital region was announced.
Here is the story of 'China Babu' who successfully
fooled the people by abusing his position!
500 Acres of Foresight
Before the first announcement on the location of
the capital region on September 4, 2015, Lokesh has The land that is purchased at higher rate than that
bought several acres of land near Core Capital of market in the name of Vemuri Ravi Kumar
region through his benami Vemuri Ravi Kumar
against the payment of the remaining amount.
Prasad. In Amaravati mandal, he could purchase a
However, their greed hasn't stopped there.
total of 500 acres.
Black became white
Ravi Kumar Prasad and his wife Anuradha bought
Lokesh has further used this occasion to convert
the lands of survey numbers: 59/A2/1, 59/A2/2A,
his black money, which he had made after coming
59/A2/2B1, 59/A2/3A, 59/A/2, 59/B, 61/1A in
into power. In Dharanikota and Vaikuntapuram
Dharanikota and the lands of some 25 survey
villages, the land price was between Rs. 7 lakh to Rs.
numbers in Vaikuntapuram village for Goshpadi
12 lakh, but Ravi Kumar Prasad and his Wife, who
Green Fields Pvt. Ltd., Future Space India Pvt. Ltd.,
purchased lands for different companies, have
Net India Pvt. Ltd., among others. They could buy
shown the value of an acre at Rs. 71,20,108. This
these lands for a nominal rate ranging from Rs. 5
means they have inflated the original price 10 times
lakh to Rs. 9 lakh per acre. They gave token advances
during the registration. This effectively means they
initially and went for registration on August 5, 2015,

Emperor of Corruption 125


The GO of AP Government that shows the appointment of Vemuri Ravi Kumar Prasad as
the Government Advisor (Non-resident Telugus' Affairs and Investments)

have converted a huge amount of black Chandrababu appointed Hari Krishna as a


money into white. member of E-governance Authority,
Electronics and IT Agency and Innovation
Who is Ravi Kumar Prasad? Society. He was also the member of the
Assessment and Supervision Committee
Ravi Kumar Prasad is none other than
for the tenders of the first phase of Fiber
the brother of Vemuri Hari Krishna, who
Grid Project, which was of Rs. 333 crore
had stolen the Electronic Voting
value.
Machines (EVMs) and tried tampering
Ravi Kumar Prasad coordinated the US
with them. Hari Krishna was the in-
tour of Chandrababu before the 2014
charge of the social media campaign of
elections. In return, he was appointed as
Telugu Desam Party (TDP) during 2014
the AP Government Advisor (Non-resident Telugus'
elections. He also held a key position in Heritage
Affairs and Investments) on September 9, 2015.
Foods and TDP. After coming into power,

126 Emperor of Corruption


Sujana Chowdary’s
Land Robbing
Benamis: Sri Kalinga Green Tech
Chemicals and Y. Siva Ramakrishna
Purchased Land: 700 Acres
Amount Paid: Rs. 35 Crore
Present Value: Rs. 700 Crore

Sujana Chowdary has been in the news recently for


all the bad reasons. Finally, his karma seems to have
caught up with him. His specialisation in taking
hundreds of crores of rupees for his companies and
defaulting on them won't seem to work anymore. The
recent raids of the Enforcement Directorate (ED) and the
further refusal of the Delhi High Court to stay ED
summons have shown his original colour the country.
However, it was his capacity to cheat made him a
close aide of the AP Chief Minister Chandrababu Naidu.
Impressed with his 'financial prowess', Naidu has not
only made him the member of Rajya Sabha but also
placed him the Modi cabinet. Mr. Chowday has
defaulted Rs. 100 crore to banks and bought 700 acres in
Amaravati region with that money. He also has been
trying to encroach upon another 130 acres of forest land
during 2014-15.

Brother's PA is Benami
Harshananda, the personal assistant of The documents of land purchased by former central
YalamanchiliJatin Kumar, brother of Sujana Chowdary, minister Sujana Chowdary in Gudimetla of
has incorporated a company named Sri Kalinga Green Kanchikacharlamandal, Krishna district.
Tech Chemicals. This company has bought land in
ruling party MP who was privy to the crucial information
Gudimetla village of Chandarlapadu mandal, Krishna
has defrauded the farmers of Gudimetla to the tune of
district. It has bought 126.44 acres of land belonging to
Rs. 56.89 crore. Near to lands bought by Mr. Chowdary,
survey numbers- 399-7, 402-1A, 403-4,5,6, 404-1,5,6,9B,
there is 130-acre forest land and the fraudster has been
11,12, 410-2, 412, 413, 415, 416, 417,-4, 427, 428-1,2, 429,
trying to encroach this land. The villagers of Gudimetla
431, 432-1, 433, 434 and 437 at the rate of Rs. 5 lakh per
have complained about these efforts, which indeed
acre. Now, an acre costs Rs. 50 lakh here. This means the
were restricting their movement into the forest lands.

Emperor of Corruption 127


Exploitation Uninterrupted He used the same modus operandi to buy 700 acres in
Chandarlapadu, Kanchikacharla and Veerulapaduman-
Sujana Chowdary's exploitation has spread out to
dals of Krishna district and Mangalagiri mandal of Guntur
Veerulapadu and Kanchikacharlamandals. He has
district. After the location of the capital was declared,
'adopted' Ponnavaramm village of Veerulapadu mandal;
when scribes questioned the correctness of his land
and he bought 5.39 acres of land of survey number 38-1
deals, he openly stated that he had money and
in the name of his father Y. Janardhana Rao and 3.5 acres
questioned what was wrong in him buying land in the
of land of survey number 41 in the name of his brother Y.
capital region. This shows he was aware of critical
Siva Rama Krishna. He also bought 3.60 acres of land of
information about the location of the capital region.
survey number 116/3 at Keesara.

Murali Mohan
The Real Benami
Purchased Land: 53 Acres Amount Paid: Rs. 16 Crore
Present Value: Rs. 212 Crore

Can you recollect the 'real estate business' of


Jayabheri group in and around Hitech City? The group
that belongs to Telugu Desam Party (TDP) MP Murali
Mohan was fully patronized by Chandrababu Naidu
back then. Now, Murali Mohan is once again being
patronized by Chandrababu Naidu in the new capital
city region.

Adjacent to the Core Capital…


Murali Mohan who benefitted from huge real estate
projects in the Hitech City area in Hyderabad has shifted The MoU of Jayabheri Group for construction
his focus to Amaravati after the bifurcation of Andhra of residential flats.
Pradesh state. He has focused on lands adjacent the
Kolkata-Chennai Highway, which goes through Guntur bought lands from the landowners. The officials of
and Vijayawada region. Capital Region Development Authority (CRDA) have
His Jayabheri group has started a residential project hastily issued permissions to Jayabheri project on July
in about 2.775 hectors (about 7 acres) land at 21, 2015, at the CM's behest.
Kunchanapalli of Tadepallemandal. The venture is next The group has already sold more than half of flats to
to a national highway and very near to core capital NRIs. Murali Mohan also purchased another 53 acres
region and is located in the lands of eight survey land near to this project at the cost of Rs. 30 lakh per
numbers including 81/3C, 80/4B and 81/2. acre. It is learnt that he was going to use this land to
For this project, Yarlagdda Ravi Kiran, Geetanjali, build star hotels, shopping malls and a convention
Nikhil Aditya, Sridheera and Best Fortune Company have centre.

128 Emperor of Corruption


Ravela…
Traitor of Dalits
Benami: Ravela Santhi Jyothi, wife of the former minister
Purchased Land: 55 acres Amount Paid: Rs. 5.5 Crore
Present Value: Rs. 82.5 Crore

The sale agreement document of the land bought by Ms. Ravela Shanthi Jyothi, wife of the former minister.

The former Social Welfare Minister Ravela Kishore had terrified the Dalits and compelled them to sell
Babu has competed with his then cabinet colleagues in their lands in a panic at around Rs. 10 lakh to Rs. 15 lakh
buying the assigned lands from poor, Dalit farmers. per acre.
While other ministers were buying lands through A Dalit farmer named Tenali Rubenu had 0.83-acre
benamis, the minister has bought a total of 55 acres of assigned land (survey no: 563/3) and it was his sole
assigned land in the name of his wife RavelaSanthi source of livelihood. Ravela Kishore Babu has bought
Jyothi. In this process, he has disregarded the A.P. this land and got registered in the name of his wife
Assigned Lands (Prohibition of Transfers) Act, 1977. In RavelaSanthi Jyothi on August 5, 2015, in Mangalagiri
the capital region, most of the assigned lands were in sub-registrar office. He also got General Power of
the hands of Dalits. By targeting the assigned lands, Attorney (GAP) on 25 acres of assigned lands. He
Ravela has done irreversible injustice to them. bought another 0.75 acres of land (Survey no: 613/2)
To cause a panic sale of assigned lands in the through his confidant Tella Srinivasa Rao's company
capital region, the government has spread the Maitri Infra and got it registered on October 16, 2015. It
rumours that the assigned lands would be taken back is learnt that Ravela Kishore Babu bought a total of 55
by the government without any compensation. This acres of assigned lands and patta lands.

Emperor of Corruption 129


Rs. 295 Crore Dowry
to CM’s Relative
The GO that Allocated 498.83 Acres
of Land in JaggayyapetaMandal to
Balakrishna's in-law, Who is a
Benami to Chandrababu.

The GO that Brought


Jaggayyapeta under CRDA
Purview After Two Months of
the Land Allocation.

This is the heights of the CM's abuse of the in-law of Balakrishna. Mr. Rama Rao is the son of
public office. He has allocated 498.93-acre land former MP M.V.V.S. Murthy and Balakrishna's
located at Jayanti Puram of Jaggayyapeta second daughter was married to the son of
mandal to a company belonged to the in-law of Rama Rao. Chandrababu Naidu has brought
Balakrishna, who is an in-law to the Chief Jaggayyapeta under the purview of Capital
Minister. The land worth Rs. 300 crore was Region Development Authority (CRDA) with
allocated to VBC (Visakha Bottling Company) the sole objective to augment the value of the
Fertilizers, Chemicals Ltd. only for only Rs. 4.98 land allocated to Mr. Rama Rao's company. An
crore. order was issued to this effect on September
The VBCFCL belongs to M.S.P. Rama Rao, an 22, 2015.

130 Emperor of Corruption


Assigned Lands in
Prathipati’s Account
Land Purchased: 196 Acres Present Value:
Amount Paid: Rs. 39 Crore Rs. 784 Crore
The Agriculture Minister Prathipati Pulla Rao has 295, 296, 379 in Venkatapalem village of Thullur mandal,
been on the forefront in buy the assigned lands of Dalits the lands of survey number 454 in Mandadam village,
with the help of his benamis. To ensure their surrender, lands of survey numbers 115, 94 in
he had threatened the Dalit owners of the assigned Uddandarayunipalem, lands of survey numbers 377, 386
lands that they wouldn't qualify for compensation under in Rayapudi village. He got these lands registered in the
the land pooling scheme, which was launched by the name of his benami Gummadi Suresh. He got GPA for
state government to gather the land for the capital city. another 100 acres in the name of Venigalla Raja Reddy
When they sold their lands in a panic, he bought them and his wife Venkaayamma.
out at the rate of Rs. 10 lakh to Rs. 20 lakh per acre. He
then has got some of the lands registered in his Who is Gummadi Suresh?
benamis' names and got the general power of attorney Gummadi Suresh is the owner of a famous clothes
(GPA) for some lands; by taking advantage of the store in Bandar Road of Vijayawada. He has close
loopholes in land laws. relations with the minister and has a partnership in the
minister's cotton business. However, Suresh is not
Foresight in Every Step thatfinancially sound to buy 96.4 acres of assigned land
Once in the cabinet, the minister had his full focus on and also it would be impossible for him to get the
acquiring as much assigned land as possible. For the assigned lands registered in his name. It was the
land pooling scheme of the capital region, he has toured pressure of the minister that got the work done.
the villages extensively. He, during this time, has
developed a very good rapport
with sarpanches and the TDP
village leaders. Then he- with
their help- had gathered the
data of Dalit families that have
assigned lands and their
financial conditions. Once the
owners of the assigned lands
were thoroughly terrified, he
bought their lands with the
help of the sarpanches and
local TDP leaders at a price
range between Rs. 10 lakh to Rs.
20 lakh.
Thus, the minister bought a
total of 196.4 acres of assigned
lands in the capital city region.
Here are the details - the lands The lanka land purchased by Gummadi Suresh, a confidant of Prathipati Pulla Rao.
of survey numbers 293, 294,

Emperor of Corruption 131


Quid pro quo
with Lingamaneni

Distance 10 Meters

Lingamaneni Estate Pole of Capital Region Limit

Chandrababu Naidu- who has grabbed fertile, and Kanteru village of Tadikonda mandal. When
three-crop lands from the farmers for development of Chandrababu Naidu and the then Union Minister for
the capital region- did not take a single inch land Urban Development M. Venkaiah Naidu gave
from his friends and benamis. The limits of the capital statements that the capital city was going to come up
region have stopping exactly 10 meters away from between Guntur and Vijayawada, Ramesh
Lingamaneni Estate is an irrefutable proof for Naidu's successfully lobbied against the decision and
favoritism. In return, Lingamaneni Ramesh has gifted convinced the Chief Minister for the change of the
the CM a guest house, that was built on the riverbank location.
lands against the environmental rules. It was an open
secret that the CM and his family members have Rs. 4,000 Crore Profit to Lingamaneni
shares in Lingamaneni Estate. Can anybody cite a Once the deal was finalised with Lingamaneni, the
better example for quid pro quo than the Chief CM gave clarity on the location of the capital region.
Minister protecting the lands of private persons and Then Lingamaneni bought another 168 acres of land
accepting gifts in return? between June 8 and September 4 of 2014 at a cost of
Rs. 10 lakh to Rs 40 lakh per acre. He converted the
Babu'sBond withLingamaneni 804.32 acres of land located adjacent to Kaza and
Lingamaneni Estates owner Lingamaneni Ramesh Kanteru villages into an estate and completely
Babu is one of the close confidants of the CM stopped the movement of people through that land
Chandrababu Naidu. It was learnt that he had by erecting a fence, establishing check posts and
arranged a special flight to Chandrababu's family for fixing CCTV cameras.
their foreign tour after the general elections. The TDP leaders themselves are openly accepting
Lingamaneni group and his family members own 632 that the CM's family has got shares in Lingamaneni
acres of land in Kaza village of Managalagirimandal Estate. The Chief Minister in tandem made sure that

132 Emperor of Corruption


not even a cent of Lingamaneni Group lands are Bhaskara Rao, Lingamaneni Swarna Kumari,
taken in the land pooling. Nidamarru village which is Lingamaneni Ramesh, Lingamaneni Sumana and
under the pooling scheme has become the last LingamaneniPrasanthi.
village of CRDA. The limits of CRDA stopped 10
meters away from the fencing of Lingamaneni Estate. Here are the survey numbers
The prices of flats in Lingamaneni Estate have gone
up overnight due to its proximity to the capital of the lands purchased by
region. Now the value of an acre land of this estate is
Lingamaneni Group
around Rs. 5 crore, this effectively means
Chandrababu has benefitted Lingamaneni Ramesh
about Rs. 4,000 crore with his favuoritism. The CRDA  Lingamaneni Info City Pvt. Ltd: Account
Master Plan was devised in such a way that not an No: 100039, Survey Nos: 221-1B, 219-2, 297,
inch land of Lingamaneni Group was affected. 286-2, 298, 356-B, 360, 365, 366, 368-B and
375-C.
This is the Real Quid Pro Quo
 Lingamaneni Agro Developers Pvt. Ltd:
The Chief Minister has helped the Lingamaneni Account No: 100126, Survey Nos: 163-3,
Group to sell its 700 villas and plots in its IJM
187/B, 226-2, 257-A3, 260-A, 260-B, 260-C,
Apartments at quite high prices by withholding the
262-A, 262-B and 358-1B.
statement on the location of the capital city. Once all
the villas and plots were sold, the government issued  Lingamaneni Estates Pvt. Ltd: Account No:
the statement that the new capital would be coming 100157, Survey No: 206-A.
at Thullur village. For this coordinated delay of the
final statement, some shares of Lingamaneni Group  Lingamaneni Prasanthi: Survey Nos: 228-
were transferred to the CM's family members. Besides 2C, 229-A, 229-B, 276 and 277.
that, the guest house that was built illegally on the  Lingamaneni Swarna Kumari: Account No:
banks of River Krishna without any permission was
1488, Survey Nos: 238, 239, 240-1 and 240-2.
gifted to the Chief Minister. Then the government on
its part has spent Rs. 100 crore to develop this guest  Lingamaneni Sumana: Account No: 1488,
house further. It was called as 'unofficial guest house Survey Nos: 278, 279-A, 279-B, 280, 283-1
of CM' until December 25. When the Chief Engineer of and 287-5.
Roads and Buildings Department objected to a
proposal to fix electric appliances worth Rs. 2.27 crore  Laukya Housing Pvt. Ltd. MD
in that house, the government was left with no Lingamaneni Sumana: Account No: 2372,
option and issued a GO converting the illegal guest Survey Nos: 372-2A, 372-A.
house into 'temporary official guest house' on
December 25. Even, the TDP leaders have conceded
that this was the real quid pro quo. Besides these, Lingamaneni Ramesh-in
the position of the Director of White City
800 Acres Land Projects International Pvt. Ltd.- bought
Exempted from Pooling several acres of land belonging to survey
LingamaneniAgro Developers Pvt. Ltd. and numbers of 3350, 3009, 2900, 4893, 4526,
Lingamaneni Info City Pvt. Ltd. were the first forms of 4117, 64/79/2014, 2801, 2237, 2057. He
Lingamaneni Group. Then, they were converted into
also bought lands in Kaza village which
Lingamaneni Estate. Lands were purchased in Kaza,
Nidamarru and Kanteru villages in the names of are in the survey numbers of 219/2, 365
Lingamaneni family members Lingamaneni Poorna and 221/18.

Emperor of Corruption 133


One Bit,
One Benami
Sufficient Proof for the Land Grab in the Capital City
The capital city land scam is open and ubiquitous. Narayana, who has been playing an active role in the
One doesn't need to dig deep to obtain the evidence CRDA affairs, personifies the scandal. The minister
for the involvement of the CM and his cronies in the bought land plots across the capital region;
scam, it is just out there for everyone to see. This irrespective of the size of the land plot. Be it 45 cents,
scandal was scripted and directed by Chandrababu 50 cents, 87 cents… he bought them all. These land
Naidu under the guise of developing a world-class bits were bought in the names of his employees,
capital city. It dwarfs any great land scams in the world. relatives and even domestic maids. The minister now
Had the Chief Minister and his party was fair to the has a footprint in all 29 villages in the capital region.
people, thousands of farmers wouldn't have lost their Chandrababu Naidu was so impressed with Narayana's
livelihoods and prospective fortunes. penchant for land that he entrusted him with the
The cronies of Chandrababu and their benamis responsibility of the entire capital region. Thus,
abused their power to wreak havoc in the lives of the Narayana became the commander-in-chief of all TDP
farmers of the capital area.The Minister for Municipal leaders and MLAs who have interests in the capital
Administration and Urban Development (MA&UD), P. region.

134 Emperor of Corruption


Narayana..
Narayana
Purchase Land: 3,129 Acres
Amount Paid: 432 Acres
Present Value: Rs. 14,400 Crore
The Municipal Administration & Urban benamis at the cost per acre ranging between Rs. 10
Development Minister P. Narayana, who is an lakh and Rs. 15 lakh. As the landholdings are smaller
important mandarin in the affairs of the capital in this region, he even bought a 25 cents plot.
region, has proactively purchased the lands in and
around the Amaravati region before the capital city Total of 3,129 Acres
location was announced. Until 2014, Narayana was Narayana has displayed all his craftiness in the
known only as the owner of a large education group. capital land purchases. Initially, he paid only Rs. 2
He got his present MLC and Minister positions lakh per acre and entered into secret agreements
because of his heavy donations to the ruling Telugu with the farmers in the name of his benamis. He paid
Desam Party during the dry years as well as the the remaining amount and got the general power of
election year 2014. Overwhelmed by his financial attorney (GPA) of those lands transferred to his
power, Chandrababu Naidu stripped the powers of benamis only after Chandrababu officially confirmed
Revenue Minister K. E. Krishnamurthy and gave the that the government would acknowledge ownership
charge of the capital region affairs to Narayana. rights to the most recent owners of the lands.
Narayana has toured the capital region This statement was particularly important for the
extensively and conducted several gramasabhas to assigned and riverbank lands. Finally, those lands
convince the farmers to submit their lands for land were registered in the names of several of his
pooling. With the help of sarpanches and local TDP employees and relatives. To ensure the secrecy, he
leaders, he gathered the full details of the assigned made use of representation system of online
and riverbank lands, which were assigned to poor registration. In this format of registration, the seller
Dalit and BC farmers. Through the local leaders and doesn't need to meet the buyer directly and don't
officials, he had spread the rumors that the even have to know who the actual buyer of the land
government was going to wrest the assigned and is.
riverbank lands from their present owners without
paying any compensation. When the farmers Too Many Benami Transactions
frenzied, the minister sent in his army of benamis AkulaMunisankar, RavuriSambasiva Rao and
across the capital region and bought lands, PotturiPrameela are some of the important benamis
irrespective of its location and size. Thus, he has of Narayana. Munisankar bought 1.50 acres of land
bought a total of 3,129 acres in the name of his (Survey No: 126) in Mandadam village- which is very

Emperor of Corruption 135


close to the core capital area- at the cost of Rs. 2.25 crore
from Nootaki Narasimha Naidu, according to the villagers. Magic in Bits
While the government rate was Rs. 6 lakh per acre, the
registration documents showed the price at Rs. 9 lakh. The land that was purchased in the
Likewise, Munisankar bought 0.37 acre (survey no: 15/1) name of Avula Munisankar
from BorugaddaRamprakash of the same village; 0.56 acre
(survey no: 109/1) from BodipudiVenkataramana in
Lingayapalem; 0.45 acre (Survey No: 140/A) from Kottapalli
Radha Rani in Lingayapalem; 0.28 acre (survey no: 188) from
Kottapalli Radha Rani in Lingayapalem; 0.75 acre (survey nos:
119/A, 119/F) from Shaik HasrafUnnisa and others in
Rayapudi; 0.87 acre (survey nos: 354/1A, 354/1B) from Lambu
Venkateswarlu and 0.25 acre (survey no: 360/1) from
VelagaletiRamadevi. Thus, he has purchased about 30 acres
of land in bits and pieces. Minister's brother-in-law
RavuriSamabasiva Rao bought about 0.32 acres (survey no:
465/3B) in Mandadam and in total he has bought 29 acres
land. PotturiPrameela bought 15 acres with the same modus
operandi. She bought 0.98 acre (survey nos: 51/B, 51/C), 0.45
acre (survey no: 95/C) in Uddandarayanipalem, which is very
close to Thullur.
However, none of the aforementioned people have the
financial wherewithal to buy such huge chunks of land.
Besides these three, the minister has used quite a few of his
employees and relatives. A senior official who mans the
CRDA affairs told Sakshi that the minister owns a total of
3,129 acres land in the capital region.

400 Acres for Sure!


Narayana has mainly focused on Borupalem village of
Thullurmandal as the village was not under the land pooling
scheme. He bought about 50 acres of assigned land in this
village alone; and bought another 50 acres of riverbank land
in the Rayapudilankas between the survey numbers of 250
and 400.
Talking to Sakshi, TokalaPeturu, TokalaAnkulu, Mendem The Land that Was Purchased in the
Nageswara Rao, MendemKoteswara Rao, Name of RavuriSambasiva Rao
BulleddulaChinnappa, Valaparla Ramaiah, LaalaadiAadeyya
and LaladiSundara Rao from Borupalem and Rayapudi
villages have confirmed that they had sold the lands to
Narayana and handed over the documents to his benamis. It The Land Purchased in the Name of Prameela
is learnt that Narayana was behind the GO, which wants to
give residential and commercial plots to farmers in the same
village. Some senior officials said Narayana would get a
minimum of 400 acres of land in the capital region as the
compensation.

136 Emperor of Corruption


The Three Benamis
Avula Munisankar Ravuri Sambasiva Rao
AvulaMunisankar is a He is the brother-in-law of Narayana and his man Friday.
distant relative of the Nellore residents said that Narayana bought a good number
minister. He previously of assets in the name of Sambasiva Rao. Narayana has
worked as a contract purchased the lands in the capital region in his name once
lecturer in VRC College, again.
Nellore. He was given the
responsibility of electric works of Narayana Potturi Prameela
Medical College after Narayana became the PotturiPrameela manages
minister. The college sources said that they Narayana Colleges in Karnataka and
didn't have any information of Munisankar Tamil Nadu states. She belongs to a
and he would directly take money from middle-class family. How could she
Narayana whenever he needed. He is from a purchase several acres of land in the
middle-class family and lives in a rented capital region without having a strong
apartment near Narayana Medical College. financial background is remain an
How such a small-time employee could buy unanswered question.
lands worth crores of rupees is the question
that needs to be answered.

Payyavula Descends
Land Purchased: 4.09 Acres
Amount Paid: Rs. 12.27 lakh
Present value: Rs. 8 crore
Payyavula Keshav, the ruling party MLC, is a clear shown in the
example for the favoritism Telugu Desam Party (TDP). registration documents
The party leaders who had access to the official that he had bought land
information have abused their position to build their at the cost of Rs. 3.07
fortunes at the cost of the ordinary farmers. To begin lakh per acre, but the
with, Chandrababu Naidu, confused the people as to same land now costs Rs. The documents of land
the prospective location of the capital city by 2 crore. This means his that was bought in the
suggesting more than one locations. However, he gave land price had gone up name of Payyavula
sufficient clarity to his party leaders on the location. by at least 50 percent VikramaSimha.
This informational advantage made the ruling party within a year.
MLC Payyavula Keshav to descend upon the capital This same Payyavula Keshav always accuses the
region. He toured the villages and assessed the best opposition party being jealous of the government's
location that offers the land at a cheaper price and achievements. Many a time, he said the government
would give best returns in the future. He finally bought was building a 'people's capital' and the opposition
land in Inavolu village, which is adjacent to the core party could not bear it. Now, he must answer why he
capital region. He bought 4.09 acres (Survey Nos: 48/3, had deceived the farmers of the capital region by taking
49/3) of land on October 13, 2014, got registered in the advantage of his privy to the crucial information on the
name of his elder son PayyavulaVikramaSimha. He has location of the capital region.

Emperor of Corruption 137


Rama... Rama… Krishna… Krishna
Real Estate Venture: 179.54 Acres
Assigned Lands: 54 Acres

The collusion between the Huge Share to 'Chinna


realtors and the heads of the Some of the farmers of Nambur
government created a village who sold their assigned Babu'
conducive atmosphere for a lands to Ramakrishna Housing However, the scenario
high-volume corruption in the Pvt. Ltd. changed after the announcement
state of Andhra Pradesh. After of the location of the capital city. A
taking heavy bribes, the CM has Name Land Sold police officer from the CM visited
approved a real estate venture (In acres) the company and warned the
which has come upon the management that its venture
assigned lands of Dalits. Here are Namburu Vijaya Bhaskar 2.00
could be considered for the
the details. Namburu Subbamma 1.65 pooling as it has a considerable
A real estate company Matangi Subbamma 0.30 amount of assigned land. The
named Ramakrishna Housing Namburu Chinna 1.00 sullen company worked out a
Pvt. Ltd. came up with a venture compromise with the CM with
Matangi Maarthamma 0.30
on 179.54 acres of land next to help of a central minister.
Acharya Nagarjuna University Namburu Maha Lakshmaiah 3.00
As the result, the company's
near Guntur. The venture was on Kolakaluri Sambaiah 0.30 prime property was no more
the Kolkata- Chennai National Namburu Raju 1.00 considered for the pooling but
High Way and was under the Kokkalgadda Ruthamma 1.50 also got the full backing of the
administrative purview of Kaza government. This development
village of Nambur mandal. The Bulla Aarogyam 0.30
has altered the fortunes of the
company has bought 94 acres of Namburu Slaman 0.30
company for once and all. It has
land of survey numbers between Namburu Rosaiah 1.00 hiked the value of a sq. yard of
78 and 107 in Kaza village. It Namburu Yohanu 1.00 land from Rs. 4,000 to Rs. 25,000
acquired the remaining 76 acres within no time.
Namburu Koteswaramma 0.50
too in the same village. This entire scandal came to
In this process, the company Namburu Subba Rao 0.50
light when some of the Dalit
has acquired 54 acres of Chilaka Nagewara Rao 0.60 farmers under the leadership of
assigned lands that belong to Namburu Yohanu 0.70 David, a farmer from Nambur,
Dalit farmers. Though these Namburu Nagendram 1.00 filed a complaint about the
lands could not be registered, existence of assigned lands in the
Nambur Aadeiah 1.00
the company bribed the officials venture with Guntur district
of Pedakakani sub-registrar collector. However, the further
office and got the lands registered. Since there was no inquiry produced no result and there were allegations
objection from the registration office; the Vijayawada- that the government suppressed the probe at the
Guntur-Tenali-Mangalagiri (VGTM) Urban Development behest of Nara Lokesh, who said to have received a
Authority gave the permissions for commercial huge share in the venture. When Sakshi daily sought the
development of these lands. The company started selling explanation from Mangalagiri Tehsildar on this issue,
villas and plots within no time thanks to its vast network she confirmed that there were canals and poramboke
of marketing staff and of heavy publicity. lands in the real estate venture.

138 Emperor of Corruption


Dhulipalla's
Poramboke Lands
Encroached land: 50 acres
Registered Land: 3.89 acres
Ever since the capital city location was announced, the names of his benamis to create the link.
the illegal land grabbing by the MLAs, MPs and the According to these documents, the first buyer was
leaders of the ruling party knew no limits. Be it Pullaiah's son D. Sambasiva Rao. Then he 'sold' this land
government lands, assigned lands, riverbank lands, to Upputuri Kiran Kumar, Adusumilli Ravi Kiran and
rivulet lands or poramboke lands, the TDP leaders left no Venna PedaAchhi Reddy. With this, the link documents
land untouched. They have were created. Later, these three
created fake documents, bribed people have 'sold' the land to
the staff of revenue and Sambasiva Rao's father
registration departments and got DevaraPullaiah.
the lands registered in the names Under the pressure from the
of their benamis. It was that MLA, the officials have divided
simple! the land into three survey
The 'success story' of Ponnur numbers viz. -274/B6, B7 and B8
MLA Dhulipalla Narendra Kumar and registered them in the name
exemplifies the legal plunder by of Pullaiah. The present market
the ruling party lawmakers in the rate of the land would be up to
capital area region. After the Rs. 5 crore.
announcement of capital city
location, the prices of the lands Encroachment of 50
that are adjacent to Kolkata- Acres Poramboke Land
Chennai highway have gone up
The MLA has also
overnight. This has 'incentivised'
encroached upon 50 acres of
the MLA to eye the rivulet lands in
poramboke land in Nambur
Nambur village of
village of PedaKakanimandal
Pedakakanimandal.
and is converting it into
Registrations Under agricultural land with the help of
The Documents of the Rivulet Land his men. These men have dug
Pressure Appropriated by Dhulipalla Narendra in bore wells in the lands. The MLA
Narendra Kumar moved the Name of One of his Relatives. had called up the Village
pawns tactically to get 3.80 acres Revenue Officer of Nambur and
of rivulet land (survey no: 274). By ordered him to grant permissi-
using his influence, he got registered in the name of his ons for the borewells on the encroached land. The ent-
benami and close relative DevaraPullaih. For this, he had ire village knows that these are poramboke lands, but
pressurised the revenue officials and created land nobody spoke out lest they are attacked and subjected
purchase documents numbered 2638, 2639 and 2640 in to harassment.

Emperor of Corruption 139


Kodela’s Son, the
Rising Star of the Land!
Present
Land Purchased: 17.3 acres Value:
Amount Paid: Rs. 93 lakh Rs.18.4 Crore

Kodela Siva Rama Krishna, the son of AP


Speaker Kodela Siva Prasad Rao, has developed his
own style of land grabbing. He identifies the
litigated lands, coerces one of the parties to sell
off the land at a cheaper price and simply owns
the land. With his mafia style of land grabbing, he
is giving nightmares to the people from Narasara-
opet and Sattenapalli assembly constituencies.
Siva Rama Krishna formed special teams to
identify the litigated lands in the capital city limits.
These teams gather information about the
litigated lands and produce one of the parties at
Siva Rama Krishna. Then, with his various tactics,
he would 'convince' the party to sell the land at a
cheaper price and get it registered in the names of
his benamis.
For instance, there was a dispute between two
brothers about 17.3 acres land in survey numbers
167-1A, 167-1C, 168-1 and 168- 3 in Dhulipalla
village of Sattenapalli mandal. Sensing the
opportunity, Siva Rama Krishna summoned one of
the brothers and bought the land from him for
just Rs. 8 lakh per acre while the market rate was
about Rs. 1.5 crore. Though a case was pending in
the court as to this land, the revenue officials
hardly cared for that and registered the land in the
name of Sasi Infra, in which Gutta Naga Prasad- an
aide of Siva Rama Krishna, was a managing The documents of the land that was bought by
partner. Siva Rama Krishna used the same tactic, Kodela Siva Rama Krishna in the name of his
forcible occupation, to usurp several acres of land benami Gutta Naga Prasad.
in Narasaraopet and Sattenapalli constituencies.
Yuddanapudi mandal in Prakasam district. He was from
Who is Gutta Naga Prasad? an ordinary family and completed his B.Tech. When
Gutta Naga Prasad is from Poluru village of Kodela Siva Prasad's elder son Satyanarayana died in a

140 Emperor of Corruption


road accident, he became close to the AP Speaker, Naga Prasad began
Kodela's family. Kodela Siva Prasada Rao working as the personal assistant of his
offered him a job when he was the son Kodela Siva Rama Krishna. He also
Chairman of Basavatarakam Indo- works as a manager in Honda
American Cancer Institute, Hyderabad. showroom in Guntur. Naga Prasad lives
It was learnt that Mr. Siva Prasad has in a rented house in Chilakaluripet and
used Naga Prasad as a benami and manages the affairs of Kodela family in
secured contract works in the hospital Narasaraopet and Sattenapalli
and got them executed. Once Mr. Siva constituencies. How could a middle-
Prasad resigned from the chairmanship class man like Naga Prasad buy the land
of the hospital, Naga Prasad became his worth almost Rs. 1 crore? Everybody
personal assistant. After Kodela became knows the answer.

Kommalapati Sridhar…
Totally Illegal!
Land Amount Present
Purchased: Paid: Value:
42 Acres Rs. 1.26 Crore Rs. 210Crore
This is a classic example of Chandrababu Naidu's company bought 42 acres land in Yerrabalem village,
favoritism and the rowdyism of his party MLAs in the located in survey numbers between 485 and 500. The
capital city region. Once the location of the capital city sale of flats that were constructed on this land began
revealed, eyeing massive profits, the ruling party MLA in 2009. Each subscriber paid the initial amount of Rs.
Kommalapati Sridhar- who owns a huge real estate 25,000 and paid the remaining amount in monthly
venture in the capital city region- has stopped installments by 2012.
transferring the ownership rights of the plots to the However, once he collected the full money, Sridhar
3,000-odd owners, to whom he sold the plots seven had shown his true colours. He branded all the
years ago. Ever since the announcement, subscribers who failed to pay even one installment as
Sridharopenly told the plot owners they should forget defaulters and refused to register the plots to most of
about their plots. He has colluded with the Chief them. Meanwhile, the venture permissions were
Minister and got his lands exempted from the land stopped as Yerrabalem came under the land pooling
pooling process. In return, the MLA gave a large share range. When some members approached Sridhar
in his project to Lokesh, the son of Chandrababu. about their plots, he promised them to allocate land in
some other venture and finally gave them nothing.
Denial of Rights When the plot owners protested, he used his political
Kommalapati Sridhar's company Abhinandana clout and silenced them. It was learnt that he
Housing Private Ltd. has been in real estate business in defrauded to the tune of Rs. 15 crore in the Yerrabalem
Guntur-Vijayawada area for quite some time. The venture.

Emperor of Corruption 141


Out of
Land Pooling…
The government used every
available tactic to threaten the
farmers of Yerrabalem to get their
lands. However, the 42 acres land
of Sridhar was not only exempted
from land pooling but also
dropped from the Master Plan
draft. The officials who do not
wish to be named said the CM
was behind this omission. It is
learned that this venture will
become the first private real
estate venture in the Capital city
region.
Reportedly, the name is also
decided for this venture i.e. Mega
City. According to TDP sources,
the CRDA is giving all necessary
permissions to Mega City project
thanks to the 'special interest' of
Lokesh in this venture. When
contacted, the CRDA Deputy
Collector Lalita Kuamri said the
42 acres of land was under the
land pooling. However, she said
she informed her higher-ups
about the non-availability of the
land for the pooling. The then
CRDA Commissioner Srikanth
even refused to respond to this
The land documents of Abinandana Real Estate that belong
query.
to Pedakuraadu TDP MLA Kommalapati Sridhar.

142 Emperor of Corruption


Open Fraud and Deception…
The Farmers’ Response
It was a Panic Sale!
I have read all the stories of land grabbing in Sakshi daily and they were completely
true. In the beginning, when we refused to give our lands for land pooling, the government
terrified us. They warned us that our lands could be taken back forcibly if we refuse to
surrender them voluntarily. The ruling party leaders and the government officials made us
believe that we wouldn't even get the lowest price- Rs. 20 lakh per acre- if we submit out
lands for pooling. Having seen the adamant attitude of the government, we have sold our
lands. Now the value of the same land has gone up to Rs. 1.40 crore per acre. This was quite
unfortunate. - KommareddyPicchi Reddy, Nidamarru, Mangalagiri mandal.

Government Duped Us
Ever since the government announced the location of the capital region, it has been
conning us left, right and centre. As we were reluctant to give our lands, the
government used several tactics to frighten us. Due to this pressure, we have sold our
lands at cheaper rates. The ministers and the ruling party leaders who bought our lands
made us believe that we wouldn't get the right compensation in the land pooling and
bought our lands at throwaway prices. We have incurred heavy losses as we sold the
lands at such atrocious prices.
- KoppoluVenkateswarlu, Bethapudi, Mangalagiri mandal.

It's All a Drama


The stories that appeared in Sakshi daily on Wednesday are 100 %accurate. Before the
announcement of capital region location, the MPs, MLAs and ministers came here, scared
us and bought our lands at cheap rates. Now, they keep on changing their versions and
playing dramas. We have lost a lot financially. There should be a probe into the real estate
transactions of bigwigs who bought lands from the ordinary farmers in the capital region.
- Jonna Sivasankar, Undavalli, Tadepalli mandal.

They Forced Us!


Ours were fertile and multi-crop lands. We were threatened by the government
and ruling party leaders when we refused to give away our lands. We were forced to
sell the lands at lower prices. Now we are duped.
- BethapudiSambaiah, Nidamarru, Mangalagiri Mandal.

Emperor of Corruption 143


No Compensation to Assigned Lands, We Were Told
The government delayed the announcement of the compensation to assigned
lands. It has announced the compensation after we had sold all of our lands. Because
of this, we have lost a lot. I have sold my 83 cents land for Rs. 39 lakh. The same land
is now worth about Rs. 1.20 crore. It is really difficult for us to digest this fact.
- RavuriPrabhu Das, Kuragallu, Managalagiri Mandal.

It was a Distress Sale!


We sold our lands as we were told that they would be any way taken from
us for land pooling without paying any compensation. I have sold half an acre
of my land at Rs. 18 lakh and now it costs about Rs. 70 lakh. I am not able to
put up with this fraud.
- Chenchu Rama Rao, Kuragallu, Managalagiri mandal.

Leaders Cheated Us
I bought land in Rayapudi at the cost of Rs. 40 lakh. Government officials scared
me that the land would be pooled for the capital city and a road would be
constructed through it. The TDP leaders asked me to sell the land for the same price.
When I accepted, they have brought down the price to Rs. 35 lakh. The men of TDP
MLAs decided land prices here. I have lost my fortune due to the deception of
theTDP leaders. - Dasari Anjaneyulu, Undavalli, Tadepalle mandal.

They Deflated the Land Prices


An acre land was about Rs. 5 crore before the announcement of the capital
region. But theTDP leaders confused us about the land rates. When the farmers
wanted to sell the land, they could not get the price of even Rs.1 crore. The ruling
party leaders bought lands at lower rates. We want to go to the court on this
blatant fraud.
- Meka Prabhakar Reddy, Penumaka, Tadepalle Mandal.

144 Emperor of Corruption


Chief Minister Chandrababu Naidu in Lingamaneni guesthouse

Andhra Pradesh Chief Minister


Chandrababu Naidu giving an interview to
Shekar Gupta in the illegal guesthouse gifted to
him by Lingamaneni Ramesh. The AP
government previously declared the same
building illegal as it was built on riverbank
land, breaching the environmental laws.
However, the CM made it an official guesthouse
and legal once it was gifted to him.

Lingamaneni Ramesh
King of Encroachments
Very Close to the CM!

Emperor of Corruption 145


received from the government. The CM happily took the
guest house, ignoring its illegal status, and made it his
official guesthouse!
With the support of CM, Lingamaneni Ramesh took
hundreds of acres of land into his custody between
Guntur and Vijayawada cities. Then he built a fence
around these occupied lands. His efficiency was so
impeccable that the capital city region limit came quite
close to his estate and then turned the other way!
The stories of Chandrababu Naidu benamis are
surfacing one after another as the AP media probed the
land transaction in the capital region. Sakshi daily-
Who is Lingamaneni through a series of stories- has presented an irrefutable
proof for the link between Chandrababu Naidu and
Ramesh? Lingamaneni Ramesh. To get this proof, the daily had
not made any special effort, which generally should be
He is not only the boss of defunct Aircosta airlines the case. The poor farmers who lost their lands to
but also a land grabber who captured the banks of River Lingamaneni Ramesh volunteered to share the
Krishna and built a huge palace over it. This palace was evidence, which has shown the way he had grabbed the
classified an as illegal building by the AP government as lands of poor farmers and clubbed it into his estate.
the construction was breaching quite a few The government was quite adamant about
environmental laws. However, this status has changed collecting the irrigated and multi-crop lands from the
overnight once Ramesh gifted the palace to the Chief small farmers, however, it was very generous when it
Minister as a return gift for the favours that he had came to the Lingamaneni Estate lands. Here is the story

The beginning of
Lingamaneni Estate
at Kaza village.

This is the end of Nidamarru village.


The CRDA limit ends here.

146 Emperor of Corruption


that details the fondness the CM has got for Pradesh. According to the farmers, Lingamaneni had
Lingamaneni Ramesh. occupied 300 acres of land of the survey numbers of
191, 192, and 226, among others.
Long Ago… As Sakshi daily published a series of stories on
In the early 1930s, limestone reserves were found in manipulative land transactions of other TDP leaders, the
about 300 acres area in Kaza village. This land was leased farmers approached the newspaper and shared the
to the Mumbai-based Associated Cement Company for evidence. Their contribution has helped Sakshi nail
99 years in 1937. Then, on behalf of MDWH Bennetts down the industrialist-cum-land grabber who is very
Company, Kurmaraju Gopala Swamy entered into close to the Chief Minister.
agreements with the farmers and obtained only sale
contracts from them. In these contracts, there was a
provision which stated that the farmers could restart
agriculture in their respective lands until the end of the
lease period if the cement company stopped mining on
the land. Once the lease period over, the rights of the
lands shall return to the legal heirs of the farmers who
originally owned the lands. All these details were
mentioned in the sale contracts. The ACC has stopped
mining on these lands long ago as it had closed down its
local unit. However, once the unit is closed, things
haven't moved as they were supposed to be and have
gone wrong completely.

Once Chandrababu in Power…


Lingamaneni occupied these lands. Once
Chandrababu came to power, Lingamaneni had used
political clout to coerce the farmers. The farmers had to
sign empty stamp papers and Lingamaneni and Co.
wrote some cooked up content on those papers and
bagged the lands worth Rs. 1,500 crore.
Lingamaneni converted these lands into an 'estate'
by ring fencing the land, deploying security guards and
installing CCTV cameras. Now the land value in this area
is about Rs. 5 crore per acre. The entire episode came out
as some of the farmers from Kaza village who still
possess the sale agreement papers wanted to find their
lands. When they tried spotting their lands, they came to
know that they were located inside the Lingamaneni
Estate.

Irrefutable Evidence with Farmers…


The farmers said though they were the rightful The document that shows the rights of
owners, they were not being allowed to visit their lands the farmers that they could retake the
as they were located in Lingamaneni Estate and they lands after the 99-year lease period.
were being stopped by the private army of Lingamaneni
Ramesh.
Though farmers have complained about the
activities of this land mafia, the revenue officials did not
respond to their problem. No revenue or police official
has the guts to go against the will of the CM in Andhra

Emperor of Corruption 147


Thallayapalem

Rayapudi
(6 lankas)
Uddandarayanipalem
Mandadam

Venkatapalem

A Ravan in Undavalli lankas

Every Lanka
They have always eyed the assigned and lanka (riverbed)
lands from the very beginning
is the number of lankas (tracts of riverbank lands) the in the capital city region.

13 While 6 lankas are situated near Rayapudi, 2 belong to Undavalli. Mandadam,


Lingayapalem, Tallayapalem, Uddandarayunipalem and Venkatapalem villages
have one each.

acres of lanka (riverbank) and assigned lands were being


2159.17 cultivated in these villages. Out of this, 574.93 acres were
assigned lands and 1,584.24 acres were lanka lands.

2,028 acres of assigned land was being cultivated in the capital city

2,028 region. In this, 1,278 acres of land was assigned in 1954. The remaining
750 acres were distributed to SC, ST, BC farmers in later phases.

148 Emperor of Corruption


3,097
acres of
riverbank and
assigned lands
were bought by
TDP leaders in
the names of
their benamis.

A file photo of Lanka land in Guntur District

While Ravan abducted Sita in Ramayana with his from 77 cents to one acre.
cunning, the present day Ravans have snatched the These Dalit families built their lives around these
riverbank lands from poor farmers. Using their powerful land holdings and for most of them, the land offered a
connections, the ruling party leaders have made the dependable livelihood and hope. However, the trouble
strategic moves to get the lands that they were never started with the issuance of orders for land pooling in 29
supposed to. villages of the capital region.
To ease the business of this land mafia, the AP The land pooling orders stated that only assigned
government first removed lanka (riverbank) lands from and patta lands would be pooled in the capital region.
the land pooling scheme. Then, terrified the small Chandrababu Naidu made sure that those orders did not
farmers with a Goebbels' campaign that the mention lanka lands. The absence of any reference to
government was planning to take back the riverbank lanka lands created confusion among the owners of the
lands without any compensation. The government lands. The confused farmers became vulnerable and
officials and media outlets of the ruling TDP leaders have started selling off their lands.
fueled this campaign and created panic among the
farmers of riverbank lands. Real Vultures
Fully supported by the government, the ruling party The ministers Narayana, Prathipati Pulla Rao and
leaders descended upon the riverbank villages and Devineni Umamaheswara Rao- who extensively toured
bought riverbank lands paying between Rs. 5 lakh to Rs. the villages of the capital city region for three months
35 lakh per acre. Once these transactions were over, the during the land pooling process- took advantage of this
government announced a generous compensation confusion. With the cooperation of the CM, they have
package for the riverbank lands! ensured the omission of riverbank lands in the land
pooling orders and instructed their men to spread the
First, Exempted from Notification rumours that the government was planning to take the
In the capital region, there are 13 lankas and all of lanka lands back without paying any compensation. The
them were being used for cultivation. There was 574.93- misinformation campaign created a panic among the
acre assigned land and 1584.24-acre lanka land in the farmers in 13 lanka villages. The TDP local leaders visited
capital region. The government distributed these lands each house of the farmers of lanka lands and counselled
among poor Dalit farmers between 1954 and 1976. They them that they (farmers) had no option but to sell their
were given titles for these small holdings that ranged lands off. The farmers were pushed to a state where they

Emperor of Corruption 149


felt they had no option but to give up
their lands.
Once breaking the will of the farmers,
the local leaders signalled the ministers
and the ministers sent in their benamis to
buy off the lanka lands. According to the
information shared by Dalit farmers to
Sakshi daily, Nara Lokesh, the son of
Chandrababu Naidu, bought lanka lands
in Uddandarayunipalem and
Lingayapalemlankas, DevineniUmama-
heswara Rao and Prathipati Pulla Rao
bought in Thallayapalem and
Venkatapalemlankas, Narayana bought in
Rayapudilankas, Balakrishna's relative
M.S.P. Rama Rao bought lands in
Mandadam and Undavallilankas.
Prathipati Pulla Rao alone bought 96.4
acres of lanka lands in the name of his
benami Gummadi Suresh. However, he
has got only 1.01 acres of land registered
at Mangalagiri sub-registrar office. As the
registration officials rejected to register The documents of
the remaining land, the minister entered lanka lands bought
into sale agreements with farmers. The by Gummadi Suresh,
other ministers also have entered into sale a benami of
agreements with the farmers. However, Prathipati Pulla Rao.
the land vultures took possession of the
documents, passbooks and assignment
documents issued by the government.

Scandal of Rs. 2,500 Crore


Once Nara Lokesh bought the lanka
lands, the Capital Region Development
Authority (CRDA) issued land pooling
notification for 1,093 acres in Rayapudi
village limits and 162.50 acres in Undava-
llilankas. However, this notification did
not mention the survey numbers of the
lands to be pooled for the fear that the
farmers could come to know the
ownership status. The CRDA officials
themselves have stated such issuance of
notification without details was against
law. Since the government has agreed to
pool these lands too, their value has now
gone up to Rs. 1.75 crore per acre. The CM original owners. It is learnt that through this decision,
recently ordered the Chief Commissioner of Land the CM wants to make his son Nara Lokesh and his
Administration that the new owners of lanka (riverbank) ministers who bought these lands richer by Rs. 2,500
lands should be given all the benefits instead of the crore.

150 Emperor of Corruption


TDP Leaders Bought Lanka Lands
Most of the Dalit farmers from lanka villages are illiterates. My elder brother also sold
77 cents land. They have blindly trusted the ruling party leaders. Out of the fear of
government's takeover, they have gone for a panic sale. Brahma Reddy of Mangalagiri,
Gummadi Suresh of Vijayawada bought 150 acres land in my village for Nara Lokesh,
Balakrishna, ministers Narayana, Devineni Umamaheswara Rao and MP GallaJayadev.
As lanka lands were also being pooled now, their price has gone up.
- Tirumanpalli Jayaprakash, Thallayapalem Lanka.

Sold My Land Out of Fear


The one-acre lanka land was our sole source of livelihood. As TDP leaders told me
that the government would take over my land, I have sold it for Rs. 22 lakh.
Meanwhile, marriage was fixed a family member of mine. I took Rs. 5 lakh as advance.
They told me that the remaining amount of Rs. 17 lakh would be paid only when I
submit my land for the pooling. Now, the government wants to take lanka lands in
the land pooling, the land price has gone up to Rs. 1.50 crore. Because of the ruling
party fear tactics, I have lost a fortune of Rs. 1.28 crore.
- Mandala Mary Babu, Uddandarayunipalem Lanka.

They Scared Us!


In our villages, the ruling party leaders ran a massive propaganda saying that we
were going to lose our land. When we approached the government officials, they
told us that the government has every right over the land as they were once given
by the government. Then, I felt that there was no option and sold my 90 cents land
for Rs. 16 lakh. Now, the same land is worth about Rs. 1.50 crore. I sold my land as the
government has failed to announce its policy on assigned lands in time.
- NandigamNagendramma, Uddandarayanipalem.

Emperor of Corruption 151


I was a TDP Supporter, Still Got Cheated
I had 1.40-acre land in lankas and I was a strong backer of the ruling TDP. My party
leaders have told me that the government would take over our lands without paying
us any compensation. As I trusted them,I sold my land for Rs. 40 lakh. I got Rs. 10 lakh
as advance. Now, since the government has announced that it would take lanka lands
in pooling, the land price has gone up to Rs. 1.5 crore per acre. I am a panchayat
board member from the ruling party and they could still deceive me. This is
something I cannot digest easily.
- SuddapalliKoteswara Rao, Uddandarayanipalem Lanka.

Officials Scared Us
The CRDA officials told us that we would not receive compensation for our assigned
lands in case the government takes them over. That was why we sold the land as
and when the buyers were available. Because of this fear, I have sold 3 acres of my
land for Rs. 45 lakh (per acre). Now, the value of an acre land is almost Rs. 2 crore
and I have lost the fortune because of government's fraudulent maneuvers.
- Puli Subba Rao, Uddandarayanipalem.

Wouldn't have Sold Land if Package was there


The government gave us an acre land 10 years ago. Since then, it was our only source of livelihood.
When I was working in a field, I overheard people saying that the government was going to take
over the assigned lands. I feared that Chandrababu Naidu would take away my land, that's why I
sold it for Rs. 20 lakh. Now, the same land value is about Rs. 1.5 crore. Had the government
announced lanka land policy bit earlier, I wouldn't have sold my land.
- Mandal Philip, Uddandarayanipalem

152 Emperor of Corruption


Narendra Kumar
Did not Stop
Being tipped off about the Capital city
location, the ruling party MLA Dhulipalla
Narendra Kumar did not stop with
encroaching upon the rivulet poramboke
lands in Nambur village of
PedaKakaniMandal, he also bought 3.58
acres of land (0.72 acres of Survey No: 69-1)
and 2.86 acres of Survey No: 69-2) in Inavolu
village, which is quite close to Core Capital
region in the name of his elder daughter
Dhulipalla Veera Vaishnavi. He bought this land in 2014 itself for Rs. 3.80
lakh per acre. Thus, he pocketed 3.58 acres of land for Rs. 13.60 lakh.
The documents of land bought by Now the land value in Inavolu is about Rs. 7 crore per acre. It learnt that
Dhulipalla Narendra Kumar in the Mr. Kumar bought a total of 50 acres land in the capital region in the
name of his daughter. name of his benamis.

Share of Anjaneyulu is 4.69 Acres!


TDPMLA G. V. Anjaneyulu also has his
share in the legal land grab. Having been
informed about the location of the
capital city, he bought 4.96 acres (2.26
acres of survey number 77-2, 0.97 acres
of survey number 121- 7 and 1.46 acres
of survey number 137-2) in Inavolu
village, which is very close to the core
capital region. He bought the land in
2014 in the name of his daughter
Gonuguntla Lakshmi Sowjanya. In 2014,
he spent only Rs. 3.9 lakh on an acre and
the value of that land had gone upto Rs. 2 crore per acre after the
declaration the capital location. Anjaneyulu often states that
having the capital city in Guntur district is a great privilege,
however, he must also tell how ethical it was to cash in on
privileged insider information and deprive ordinary farmers of
The details of the land bought by the
their fortunes.
TDP MLA G.V. Anjaneyulu in the
name of his daughter.

Emperor of Corruption 153


Red Zone in the
Name of Green Zone

Agriculture Protection Zone - 1

Agriculture Protection Zone - 2


The zone classification is the fifth and final stage of
the land grab drama staged by the Telugu Desam Party
(TDP) government. The government came up with an Agriculture Protection Zone – 3
idea to divide the capital region into three zones-
agricultural, semi-agricultural and commercial zones. Present Urban Area
While the agricultural zone was strictly for agricultural
purposes, the semi-agriculture zone was meant for Proposed Urban Area
mixed use and the commercial zone was for
commercial purposes. Proposed Industrial Area
The CM has had the arbitrary powers to decide
which land goes under which zone and the Dots represent the
classification was purely based on one criterion- the lands of the CM cronies
proximity of the landowners to the ruling party. The CM
has introduced this classification to inflate the prices of
To strip of any possible value of the lands in
the lands owned by his son Nara Lokesh, the ministers,
agricultural zone, the government had imposed several
MLAs, MPs and his party leaders. The lands of these
restrictions on the usage of land in agricultural zone.
thieves to account for a significant portion of the
Whether the lands are fertile or not, they should be
commercial zone. The lands of the common people
used only for agricultural purposes. This classification
were aligned into the agricultural zones.

154 Emperor of Corruption


has ensured a sudden downfall of the land value in quite financially unattractive. The ruling party says these lands
a few areas of the capital city region and inflated value of were earmarked only agriculture purpose in order to
the lands of the TDP leaders. increase the value of commercial plots that would be
allocated to farmers in the capital city region. However,
This is Green Zone the farmers in the APZ-1 are set to lose big time with this
The Capital Region Development Authority (CRDA) is decision. By making them scapegoats, the TDP
spread across 58 mandals in Krishna and Guntur government has tried to inflate the prices of the lands of
districts, covering 8,603, 32 sq. kilometers area. In the the leaders of the ruling party.
draft Master Plan, 63.23 percent of the land i.e. 5,940.26
sq. kilometers is shown as Agricultural Protection Zone Grounded Land Prices,
(APZ). This is equivalent to 15 lakh acres. While APZ-1 is Stalled Transactions
Krishna district, the APZ-2 and 3 are in Guntur district.
Before the declaration of zone classification, the land
While APZ-1 has a heavy agricultural tilt, the APZ-2
price per acre was about Rs. 3 crore in the villages that
and 3 are for mixed use and would host Future
fall under APZ-1. Chandrababu Naidu used to claim that
Urbanised Developable Area, which is supposed to be
he was the raison d'être for the augment of land prices
developed by the government once it is completed the
when the land prices rose across the capital city region.
development of the capital city limit. The TDP leaders
But, post-classification, the land prices have plummeted
and their benamis have bought about 10,000 acres of
in the Agri Zone areas. The government has taken away
land in APZ -3 and the proposed urbanised areas, as it is
the fertile lands in the name of developing a global city.
evident from the picture presented with dots. The
It is undertaking the business with foreign firms,
government has ensured that none of the lands of the
however, at the same time, it is also making sure that its
ruling party leaders would go into the agriculture zone.
own farmers would not benefit from the capital region.
The Perspective Plan of the city was prepared to suit the
It was learnt that the TDP leaders have cashed in on this
interests of the ruling party leaders and the
unfortunate development too. They have bought lands
development projects in the city were aligned with the
at suppressed rates. They had bought huge tracts of land
interests of the TDP land vultures. This means the
in the villages of Kankipadu, Vuyyuru, Penuganchiprolu,
government would ensure the establishment of all
Jaggayyapeta, Nandigama, Kanchikacherla and
development projects near the lands of TDP leaders.
Veerullapadumandals.
Zone-I is only for Agriculture Agitating Farmers
In the APZ-1, only the activities related to agriculture, Farmers of the capital city region were very angry
horticulture, dairy, poultry and fisheries would be with Chandrababu Naidu's policy flip-flops, particularly
allowed. This point was very clearly mentioned in the with the zoning decision. They have feared that the
Perspective Plan. The Urban Development Minister government was setting up another malicious plot.
Narayana declared that the APZ-1 was dedicated Demanding the withdrawal of the zoning, they had
exclusively to agriculture because the lands in this area agitated under the leadership of YSR Congress Party.
were fertile. However, the fact is the lands of APZ-2 and They have conducted several dharnas and rastarocos in
3 are more fertile than the lands of APZ-1. According to Kankipadu, Vuyyuru, Penuganchiprolu, Jaggayyapeta,
Section 38 of the AP CRDA Act, any changes could be Nandigama, Kanchikacherla and G Kondurumandals.
made to Perspective Plan and Master Plan only after 10 Several urban development experts have objected the
and 5 years, respectively. This means it is impossible to zone classification of the CRDA, terming it detrimental to
make any changes to the Act as to the zone classification the interests of thousands of farmers. In 2016, in only
in the near future. This provision was incorporated in the one month, 2,000 objections were registered with the
act only to benefit the ruling party land vultures. CRDA, which is a serious indication of dissatisfaction
among the people. The village panchayats, irrespective
Nominal Development of the party affiliation of the elected representatives,
Perspective Plan made it clear that only agriculture have sent formal resolutions to the state government
and agri-related industries shall come up in the APZ-1. opposing its move. Farmers have warned the
This region cannot host either industrial units or service government of serious consequences if the government
industries. This restriction has rendered this zone doesn't withdraw its decision.

Emperor of Corruption 155


Agricultural Protection Zone- 1
The government claimed that most of the fertile lands, farmlands and the lands used for
aquaculture under CRDA range were brought under this zone. Activities related to agriculture,
horticulture, farms, nurseries, dairy and fisheries are allowed in this zone. This zone has spread across
both Krishna and Guntur districts.
In Krishna district, Mopidevi, Challapalli, Ghantasala, Movva, Pamidimukkala, Thotlavalluru,
Vuyyuru, Kankipadu, Pedaparupudi, Gudivada Rural, Nandivada, Veerullapadu, Vatsavai,
Penuganchiprolu, Mylavaram, G. Konduru and Nuzvidmandals are completely included in this zone,
while Pamarru, Unguturu, Bapulapadu, Agiripalli, Ibrahimpatnammandals are partially included.
In Guntur district, Prathipadu, Vatticherukuru, Chebrolu, Chunduru, Amruthalur, Kollur, Tenali
Rural, Kollipara, Vemuru, Chebrolu, Bhattiprolu mandals completely and Ponnur, Pedakakani and
Duggiralamandals are partially included in this zone.

Agricultural Protection Zone- 2


The surrounding areas of the proposed outer ring road and the suburban areas that have the
prospects of urbanisation are pooled into this zone. This zone is supposedly established for the future
expansion of the city. In Krishna district, complete Chandarlapadumandal, Kanchikacherla and
Jaggayyapetmandals are partially included in this zone. In Guntur district, Edlapadu, Phirangipuram,
Krosuru and Atchampetmandals completely, Medikonduru and Pedakurapadumandals are partially
included in this zone.

Agricultural Protection Zone- 3


The activities that are allowed in Zone-1 and 2 are very much allowed here. The activities that are
allowed in the Proposed Urban Area are also allowed in this zone.
In Krishna district, Kanchikacherlamandal is partially included in this zone. In Guntur district,
Tadikonda and Medikondrumandals completely and Pedakurapadu and Amaravati mandals partially
included in this zone. This zone is located to the west and south of the Capital city.

156 Emperor of Corruption


Urban Zone for CM and His Cronies
The zoning system of the capital city was a crafty lands, which were being used for profitable agriculture.
idea, introduced to benefit the Chief Minister and his Though Gannavaram and Hanuman Junction areas of
cronies. The CRDA brought quite a few urbanized areas Krishna district were agriculturally well-developed, they
under the agricultural zones as they belonged to were placed under urban zones as a significant amount
ordinary farmers. However, the villages in which the TDP of lands in these areas belong to TDP leaders. The
leaders possessed lands were placed under industrial mandals such as G. Konduru, Mylavaram, Nandigama,
zones, development corridors and urban zones. The Jaggayyapeta, which are not conducive for agriculture
development corridors were proposed exclusively in the are bundled into agricultural zones. Likewise, the multi-
mandals that have the lands of the government crop lands that are in and around Amaravati mandal are
bigwigs, elected representatives and ruling party brought under urban and development corridors. The
leaders. They were proposed in Gannavaram, TDP government has designed the zoning system
Bapulapadu, Gudivada, Kanchikacherla, Agiripalli, craftily to create a scarcity of commercial land so that it
Pedakakani, Amaravathi, Prathipadu, Amruthalur and could inflate the rates of the lands that belong to the
Duggiralamandals though these mandals have fertile cronies of Chandrababu.

Farmers are in Total Disarray


The land value which was at Rs. 2 crore per acre has come down to Rs.1 crore. This
land is our only property, if we cannot convert the land into money, how can we benefit
out of it? Our land is located very close to Vijayawada but the land-use restrictions in the
name of Green Zone have landed us in trouble.
- Bommareddy Srinivasa Reddy, Chalivendrapalem village.

Made our Future Questionable


I am working in a foundry in Autonagar, Vijayawada. I live in a rented house. We bought 80 cents land
in Mutylampadu in 2006. I have sold my land to meet the educational expenses of my kids as well to
construct a house and a foundry. I have sold the land for Rs. 80 lakh. I was given Rs.15 lakh advance and
an agreement was made. Upon receiving the advance amount, I have started constructing my house in
Nidamanuru. Now because of Green Zone restrictions, the land rates have suddenly plummeted in my
area. The buyers told me that they could pay not more than Rs. 40 lakh for my land. Otherwise, they
want to have their advance back, which is a tricky situation for me. I am not able to figure out a solution.
- S. Rambabu, Foundry Worker, Vijayawada

A Drive to Deprive Us of Our Fortunes!


The government pushed our lands into Green Zone and restricted us by confining
the use of our lands only to agriculture until 2050. Such restriction of land use made our
lands financially unattractive. We need to sell our lands for our children's education as
well as marriage purposes, but now the prices are completely depressed. No one is
willing to buy them at higher rates and we cannot sell them at depressed prices.
- Mandala Veera Reddy, Farmer, Nambur

Emperor of Corruption 157


ALL SECTORS SOLD OFF
Rs. 35,000 Crore
AgriGold Scam
40 Lakh Depositors and Agents
Account Holders Deposits - Rs. 6,850 Crore
Interest on Deposits - Rs. 3,150 Crore
Lakhs of people including farmers, small-time
workers and commoners have deposited their life
savings in AgriGold after being lured by the promise
of high interest. AgriGold, in turn, purchased
thousands of acres of land across the state with the
depositors' money. However, in the end, it left them
high and dry. In such circumstances, the government
ought to have arrested the top management of
AgriGold, sell the company's assets and return the
money to the depositors, agents and other
stakeholders. However, in the case of this scam, the
AgriGold management had sold off their assets even
before the scandal broke out. It had channelled the AgriGold chairman A.Venkata Rama Rao
money into its private accounts. All this happened with CM Chandrababu Naidu on April 17, 2001
with the quiet help of the Chandrababu Naidu
government. As a quid pro quo, the AgriGold disappeared overnight because of this scam. Yet, until
management sold some major assets of the company the intervention of the courts, the Chandrababu
to the family members of the Chief Minister and Naidu government did not make any arrests. The
ministers for token amounts. The delay on the part of arrests were made only after the AP High Court
the AP government in arresting the accused and admonishing the government for its apathy. The
attaching the assets of AgriGold clearly points to a government arrested the chairman and MD of the
deep nexus between the Chandrababu Naidu and company in February 2016. Meanwhile, the AgriGold
AgriGold management. The vice-chairman of management sold off all its key assets; thanks to the
AgriGold Doppa Rammohan Rao joining the ruling support and protection of the government. It could
TDP on April 30, 2016, reflects the relationship withdraw the cash deposits of Rs. 570 crore. Till the
between the two. High Court intervened, on many occasions, the
government inquiry did not move forward. In the
AgriGold Scam end, an exasperated High court, frowning on the pace
The AgriGold scam adds up to Rs. 35,000 crore. of the investigation, directed the government to
The hard-earned money of lakhs of depositors change the investigating official.

Emperor of Corruption 159


Generally, culprits would face arrests even in
minor offenses; however, the perpetrators of a scam
of the scale were protected by the government due
to their proximity with Chandrababu Naidu. The
AgriGold scam (Rs. 35,000 crore) is a much bigger
scam- in scale and magnitude- to Sarada scam (Rs.
2,600 crore) of West Bengal. While the inquiry into the
Sarada scam was handed over to the CBI, the
AgriGold scam was left to the state CID for obvious
reasons. From the beginning, the AP government did
nothing but water down the case. Moreover, without
seizing the assets of the firm, it made the CID officials
submit to the court that there was no need to arrest
the AgriGold management since they were
cooperating with the investigating agency. All these
facts add up very clearly to complete the picture.

First Case in Nellore


On December 24, 2014, AgriGold victims filed
The Deccan Chronicle reported on
their first complaint in the 3-town police station,
January 10, 2015, stating that AP finance minister
Nellore. After 2014, 14 cases were registered across
YanamalaRamakrishnudu revealed that Rs. 570 crore
the state with respect to the AgriGold scam. In the
worth deposits belonging to AgriGold depositors.
districts of YSR Kadapa, Nellore, Chittoor, Krishna, East were there in various banks.
and West Godavari, victims approached the police as
also in the states of Karnataka and Telangana where
furious to hear such an irresponsible claim and
cases were filed. Chandrababu got rattled at the time
wondered how Rs. 6 lakh could be left in these
that the entire matter would end up in the court
accounts. He questioned the government what was it
which might order a CBI probe. Keeping this in mind,
doing when the money from these accounts was
on January 5, 2015, he ordered a probe by CID, the
being withdrawn or diverted to other accounts.
agency which is under his direct control. As a result of
pressure exerted by Chandrababu Naidu, the CID
officials submitted to the High court repeatedly that
Probe for the Heck of It
there was no need for the arrest of AgriGold Around 40 lakh people have lost their valuable
management. savings in the AgriGold scam and have been agitating
on the streets. As per the CID's figures, there are 32
Where Did the Deposits lakh depositors and 8 lakh agents. The total scam is
Worth Rs. 570 Crore go? valued by the CID at Rs. 35,000 crore. For the
protection he has been providing, Chandrababu
The AP finance minister YanamalaRamakrishnudu Naidu has been taking huge amounts as kickbacks
told the Deccan Chronicle on 17 January 2015, that from the Arigold management. About 160 victims of
deposits related to AgriGold were in commercial AgriGold have committed suicide so far. And when
banks to the extent of Rs. 500 crore and another Rs. 70 the government gave the promised ex gratia amount
crore in non-commercial banks. He also stated that of Rs. 5 lakh to some, it did not release the amount for
the Rs. 570 crore would be utilised to reimburse the others. Hundreds of agents had to flee their native
money to depositors. However, after seizing 22 bank places. Instead of ensuring speedy justice for the
accounts, it submitted to the High Court that only Rs. affected, the government is out to protect the
6 lakh cash was left in those accounts. The judge was accused.

160 Emperor of Corruption


Many Twists and Turns in the
Valuation of Assets...
AgriGold's total assets as per open market
value add up to Rs. 35,000 crore. However,
excluding some of its major assets, the CID was
made to declare the total value of AgriGold
assets as Rs. 10,000 crore. What is even strange is
that they brought in the Essel Group in the name
of takeover claiming that the assets of AgriGold
would be bought for Rs. 4,000 crore. Finally, the
AP government advisor Kutumba Rao, the man
who has been sabotaging the AgriGold case at
government's behest, stated that the value of
AgriGold assets was not even Rs. 2,000 crore. In
this manner, the TDP government has devalued
the assets of AgriGold in a methodical fashion. It
is learned that while prime assets have been
excluded from the ones declared, others have
already passed into the hands of benamis of
The sale deed of the land purchased
Chandrababu Naidu. The buzz is that in
by the minister Pulla Rao from Uday Dinakar,
Bengaluru, Visakhapatnam and other places, the
a director of an affiliated company of AgriGold.
benamis, relatives and wives of leaders got the
assets worth Rs. 100-200 crore each. Ignoring all
these facts, if the government says that AgriGold
High Court Fumes at CID has more liabilities than assets, then it would be
Two PILs seeking an inquiry into this scam were filed in duping the depositors in an outright manner.
the AP High Court. On several occasions, the court had

Pattadar passbook issued in the name of Tene Venkayamma,


wife of Agriculture Minister Prathipati Pulla Rao.

Emperor of Corruption 161


expressed its anger at the functioning of the state's
CID in clear terms. It admonished them for backing CBI Inquiry Needed...
the AgriGold management and for extending all help
to it. The court was particularly displeased with the If AgriGold victims have to get justice, a
CID's revelation that only Rs. 6 lakh were left in the CBI probe has to be conducted. Once the
bank accounts of AgriGold. It asked the CID to explain CBI submits it report and when other assets
where the funds from these accounts had gone? It of AgriGold thereby come to light, all the
also sought to know what the CID was doing when
assets of the firm should be auctioned. The
these funds were being diverted. What was shocking
was the AP finance minister YanamalaRama- auction of current assets and assets which
krishnudu's statement to the media a few months would come to light later should be
ago that there were Rs. 570 crore in bank accounts conducted by a High Court judge. The
related to AgriGold. government should instil confidence in
those who come forward to buy those
Minister Prathipati Bought Lands in
assets. Otherwise, if prospective buyers are
the Name of His Wife threatened by saying that these lands are
On January 19, a month before the GO on the under litigation or that they would be put
attachment of AgriGold assets was issued, the AP to loss by buying then, there would be no
agriculture minister Prathipati Pulla Rao bought 14 takers for them in an auction. Therefore it is
acres of land in the name of his wife Venkayamma
essential that the government create
from Uday Dinkar, a director of Ram Awas resorts
hotels group of the AgriGold chain. While the GO was confidence in buyers and only then can
issued on February 20, 2015, he bought this property justice be rendered to the 40 lakh victims of
on January 19 and therefore these assets did not the AgriGold scam comprehensively.
come under the attachment. In other words,
government bigwigs ensured that valuable lands of
AgriGold were not a part of the attachment and U-turns in Essel Group takeover
included only lands of lower value in the attachment.
The government resorted to delaying tactics for
GO No. 23 Does Not Include All Assets three and a half years claiming that it would ensure
The AP government issued a GO No. 23 on justice to the AgriGold victims. At the same time, it
February 20, 2015, attaching AgriGold assets after came under criticism that the chief minister was
facing flak from the AP High court. Interestingly, only trying to own Haailand, a valuable asset owned by
some assets were attached under this GO. Even while AgriGold for a song. It was at this stage, that the Essel
the probe was on, the vice-chairman of AgriGold, group headed by Subhash Chandra came into the
Sitaram Awas (Chairman's younger brother) sold a picture with Amar Singh as its mediator.
valuable piece of land on the main road in Tirupati (1 It is being said that when Essel Group head
acre 12 cents) on August 10, 2015, for Rs. 14 crore. It is Subhash Chandra came forward to take over
pertinent to point out that this land was also AgriGold last year, some key representatives of the
excluded from AgriGold attachment. There was government held discussions with Amar Singh. It is
widespread criticism about the delay in the arrest of learnt that AwasSeetharam was also present in these
SitharamAwas, a key player in the scam. When talks. However, the sequence of events that took
criticism started to mount that Sitharam was being place between the initial statements of the Essel
given a long rope by the government due to some Group that it would take over AgriGold and does
backroom deals, the government had no choice but justice to the depositors and its announcement eight
to claim that he had been arrested. months later that the firm had more debts than assets
raises doubts over the government's intentions.

162 Emperor of Corruption


Rs 34,399 Crore
Loss to Treasury from Neeru-Chettu
Bills Paid Over Four Years - Rs. 12,866 Crore
Actual Value of Works - Rs. 3,216.5 Crore
Amount Plundered by Contractors - Rs. 9,649.5 Crore
Sand and Soil Sold by the Contractors - Rs. 24,750 Crore

GO issued hiking nomination works


under Neeru Chettu programme
from Rs. 5 lakh to Rs. 10 lakh.

Neeru Chettu-Programme was commenced by contractors have sold it to realtors and brick kilns. Thus ,
Chandrababu Naidu in 2015 with the objective of conse- they have made about Rs. 24,750 crore. As to the
rving water resources. So far, this programme has cost contract works to rejuvenate the village tanks, the ruling
the state exchequer Rs. 34,399 crore. Of this amount, party leaders have mostly have done works at superficial
approximately Rs. 9,649.50 crore have gone to lie in the level or they just did claim the bills for the works that
pockets of TDP leaders; who bagged all the contracts were already done. Further, some TDP leaders even did
made available under this programme. They have the works in places where they were not even necessary
completed only 25% of the works and swindled the and made money in the bargain. Instead of increasing
funds of remaining 75% of the works. the green cover, which was the another objective of the
One of the objectives of this scheme was to supply programme, they have cut down trees mercilessly. In the
the soil, excavated from waterbodies, to farmers free of name of developing lakes, they dug up tank beds
cost. However, the soil ended up in a wrong place as the indiscriminately. This is the situation across the state.

Emperor of Corruption 163


Here are the examples. not been weeded out and
status quo remains.
District Wise In the Malkapuram village
In Laxmipuram, Chodava- lake in Dharmavaram mandal
ram mandalam of Visakhap- of Ananthapuram district, TDP
atnam district, Rs. 40 lakh of leaders claimed money to the
Neeru Chettu scheme funds, Rs. tune of Rs. 6.41 lakh in the
10 lakh of milk federations funds and Rs. 15 lakh of name of clearing thorny bushes (shrub). However, these
Visakha dairy funds were spent on a lake that spreads thorny shrubs fill the lake bed as was the situatione
over 600 acres. These works were done by the vice MPP earlier.
Bhoothanaduni Nanikumar of the TDP. The soil
excavated was sold for real estate purposes. Similarly, in What Work Did AE Do?
work releated to PS Peta Road, another TDP leader The stream flowing from pampally in Uyyalavada
plotted out six acre of fertile agriculatural land. In order mandal of Kurnool district
to create a slope in the land there, soil from Laxmipuram never overflowed during the
lake and the old lake of Chodavaram was shifted. After rainy season with the support
handing over the work to a Panchayat Raj contractor of the minister, an AE by the
who is a follower of the MLA, the soil excavated from name Sivaramareddy was
Chodavaram old lake under Neeru Chettu was sold for assigned work. He, in turn, took
use in real estate plots. up the contract without
attending to his regular duties.
Rs. 3 Crore Worth Soil Rs. 40 lakh was claimed as
expenditure towards the
Swallowed development of this rain water
Papididhoddi cheruvu is a drain. No one knows as to
lake spread over 70 acres and is where exactly this work was
located in FK Palem of Pithap- undertaken and completed.
uram mandal in East Godavari
district. It has an irrigation basin of 1500 acres. It is being Loot in Bits
said that over the past three years, this lake was being This is the model check dam erected over the bridge
developed under the supervision of the local MLA's between Paidikaluva and pedhaputha villages in Valluru
brother at a cost of Rs. 3 crore. However, it is seen that Rs. mandal of YSR Kadapa district under the Neeru Chettu
3 crore worth soil was excavated with the help of programme. The work was split into two segments- that
equipment and shifted to brick kilns. At the same time, is concrete construction and soil related work. And Rs.
they claimed money for having 30 lakh was allocated at Rs. 10 lakh per job. These jobs
employed hundreds of were taken up under the supervision of local MPTC's son
labourers at an annual cost of Rs. and TDP leader from the village. However, due to poor
15 lakh. quality of soil used in the
construction, in the ensuing
Status Quo rains, the soil embankment got
The Malidevi drain travels completely washed away on
from kanigiri reservoir to Vidavaluru mandal via one side.
Kodavaluru in Nellore district. Under the Neeru Chettu
programme, Rs. 50 lakh were allocated in 2015 to clear Story Repeats Every
the horseshoe weed and the work was assigned to Year
Kovvur MLA Polamreddy Srinivasulu Reddy's follower
Chumukula Chaitanya. Work which should have been The work worth Rs. 9 lakh was taken up under the
completed before the monsoon was taken up in the Neeru Cheettu programme near a culvert in VN Puram of
rainy season. After doing a token job, the funds assigned Kothuru Mandal in Srikakulam district. The hillock was
were siphoned off. The result is that the horseshoe had excavated with machinery. However, the silt was not

164 Emperor of Corruption


fully cleared. Instead of removing it from the
roots, the silt-clearing job was done at a Is Selling Soil Development?
surface level and funds claimed. Similarly Rs. SC/ST/BC/Minority communities have been
54 crore lakh were allocated in 2017-2018. cultivating crops in Guntur districts, Yadlapadu
Strictly speaking, the soil should be removed village near Seethamma Cheruvu. In the year
from the lake bed totally, but it was left on 2015-16 under Neeru Chettu programme,
the embankment. digging up of these lands was started and the
poor were driven away from here.
Lakhs Claimed as Payment -Syed Subhani, Yadlapdu, Chilakaluripeta, Guntur district
to Labourers
Indiscriminate loot
In the financial year 2015-2016, soil and
silt excavation work was taken up in Soil is being sold left, right and center and
Veerepalli tank of Ulavapadu mandal in being supplied to brick kilns and layouts in
Prakasam district and Rs. 4.50 lakh were thousands of cubic metres. There is no
spent. However, labourers had already dug supervision or control of any sort and bills are
up the soil/silt from the lake under the being claimed without any check.
employment guarantee scheme. After using -Konireddy Venkatrao, Pothanapally,
a JCB to dig around the area excavated by Shrungavarapukota mandal, Vizianagaram district
labourers, money was claimed under Neeru
Chettu programme. The local TDP leader Na- Sold off
resh benefitted to the extent of Rs. 4.50 lakh. Under the Neeru Chettu programme, soil is
A few farmers in Vadepalem in Avanig- meant to be supplied to villagers. But local
adda constituency of Krishna district have TDP leaders are selling the land after digging
been involved in aquafarming. A local TDP up lakes here. Because I happened to question
leader took up excavation work even when it this, I was not even invited to the inaugural
was not required and did a token job of ceremony.
digging a drain for which he claimed Rs. 10 - Sagiraju Udayakumari, Sarpanch,
lakh. Chendurthy, Gollaprolu mandal, East Godavari district.
Desilting work was undertaken in three
phases in the percolation tank in Yerragunta Only to benefit TDP men
village of Kanekallu mandal, Anantapur The sarpanch belonging to the ruling TDP
district. Rs. 80 lakh was sanctioned for this took up desilting work related to Pitikayagulla
and the vice chairman of Rayadurgem stream and on either side of the stream carried
market yard Vanna Reddy took up the job out work on a nominal basis. The result is that
himself. He washed his hands off the entire even the small puddles which used to be formed
matter after doing a nominal job. A relative due to stagnant water have now been levelled
of state finance minister Yanamala and animals do not have a drop of water to drink.
Ramakrishnudu took up the work of - Mallela Shekarreddy, Pitikayagulla,
constructing steps on lake bed in Therram Giddaluru, Prakasam district.
mandal of Vizianagaram district. Locals,
however, complain that steps leading to the To fill their pockets...
tank were in a better condition before the
Neeru Chettu programme is ridden with
work and worsened after the work was
corruption and officials are not bothered in
completed. A TDP leader took up work of
the least. TDP men in the guise of contractors
Mushtimakula tank in Gollapalli of
are acting without any monitoring.
Palamaneru mandal in Chittoor district. On
- Chennakesavulu, CPI leader,
account of the inferior quality of work done,
Palamaneru, Chittoor district
the embankment built was swept away in
the rains of October last year.

Emperor of Corruption 165


With no Work to Show.. YSR district.
● Last year, TDP leaders took up silt clearing work under
While some TDP leaders did a shoddy job of work
Neeru Chettu programme in Goodadevi lake in
assigned to them, others brought pressure on officials to
Gudemcheruvu village of Jammalamadugu mandal
pay them for work not taken up, asking them to create
in YSR district. However, without the permission of
records to that effect. Here are a few instances...
irrigation department officials they dug it up using
● In 2017, Rs. 40 lakh was sanctioned for work related to
earth moving equipment and this was done in the
four tanks in Devaravalasa Panchayat of Sigadam
past. An amount of Rs. 5 lakh was misused on account
mandal in Srikakulam district. Howeever, though this
of this.
work was not done at all, local TDP leaders are
● In Moulugunda mandal of Kurnool district, 65 works
exerting pressure on the officials to state that work
were selected in Hebbatam, Vandavagili, Chinnah-
had been completed and create records accordingly.
yata, Peddahyata, Ellarthi, Gajjehalli, Lingampalli, Sul-
● Work to the extent of Rs. 8.5 lakh was taken up under
uvai and Virupapuram villages. The Andhra Pradesh
Neeru Chettu Programme for removing silt in canal in
government allocated Rs. 6 crore and in the names of
Yerraguntla village of Sirivella mandal in Kurnool
Seshagiri, Basavappa, Eeranna, Venkateswarulu, Rami
district. However, a single downpour brought things
Reddy and Easwar Goud, the works were claimed to
back to their original condition.
have been completed. In collusion with officials, so-
● Crore of rupees were siphoned off in the name of
me TDP leaders ignored quality and claimed Rs. 5 cro-
work done in Gorsa, Kothapalli, Nagulapalli, Raman-
re without completing even 45 out of the 65 works.
akkapeta, Komaragiri and fifteen other villages in
● While 53 works were approved and Rs. 4.58 crore
Kothapalli mandal of East Godavari district.
sanctioned to complete them in the minor irrigation
● Without doing any work related to a canal in Talami-
sector in Tirupuru mandal of Krishna district, only 30
nchi of Kodavaluru mandal in Nellore district, money
works were completed though the bills were
was claimed. A local leader Pitti Suryanarayana com-
submitted and claimed for all the works and the
plained to the collector, Lokayukta and Vigilance
entire amount.
department on this matter. Even though officials of
● Rs. 9 lakh was allocated for the development of
the Vigilance department examined the matter, no
supply channel from Korukonda RTC bus stand to
action was initiated. However, the collector surrende-
Jambupatnam Balaramaiah lake in East Godavari
red the AE irrigation, Ravi Kumar to the government.
district. In the 2 km stretch of the canal, nominal
● TDP leaders claimed to have used excavating machi-
work was done and money claimed. Less than a year
nes and sought crore of rupees for work done acc-
later, this channel got filled with silt.
ording to them in Thonduru of Pulivendula mandal in
● Rs. 22 Lakh worth work was claimed to have been

166 Emperor of Corruption


Lokesh Cronies Had a Blast Infighting in Ruling Party
TDP founder late NTR's Neeru-Chettu Programme has led to differences
hometown Nimmakuru has a lake. between ruling party leaders. Cracks have
Incidentally, the village was adopted developed over digging up and soil excavation
by Chandrababu Naidu's son Nara work in various parts, finally resulting in transfers
Lokesh. A TDP leader have dug up and sacking of a few people. In Kancherlapalem of
this lake in an uncontrolled manner Tenali mandal in Guntur district, excavation work
and siphoned off a huge amount in was taken up on a lake bed spread across 5 acres.
the name of development. After More than 5,600 truckloads of sand were carted
getting Rs. 8.5 lakh sanctioned from away and sold for Rs. 600 a truck. Without the
the government in the name of involvement of the TDP sarpanch Katevarapu
desilting, he dug up the lake to an Niramalakumari, local MPTC Kotha Tulasi's husband
extent of 10-15 metres though it is made a clean fortune of Rs. 35 lakh. They built a
stipulated that no excavation can go fence-like structure with Rs. 6 lakh around the lake
beyond 3-4 metres. He sold the soil which infuriated the group supporting the
thus excavated to make huge sums sarpanch. As a result, the secretary of the gram
of money. The leader in question panchayat had to be transferred and the field
made over Rs. 70 lakh in this fashion. assistant was relieved of responsibilities.

done in the year 2016-17 with respect to Chodavalli ● Under the Neeru-Chettu programme, Rs. 1.6 crore
lake in Achyuthapuram mandal of Visakhapatnam were sanctioned in the year 2016-17 for work related
district. Half of the soil was assigned to the embank- to Peda Cheruvu in Vizianagaram, the work was
ment of the temple land of Chodamambika and the undertaken by MLA Meesala Geetha's sister without
remaining quantity of sand was sold for a huge calling for tenders. Sixteen works were taken up by
amount. The work was undertaken by MLA the MLA's sister, but more than 50 lakh rupees were
Panchakarla Ramesh Babu's follower Vegi Mahesh. miused in the work.
There is no basin under this lake, but work was under- ● Rs. 9 lakh worth was done under Neeru Chettu pro-
taken merely to excavate soil from the lake bed and gramme in the year 2015-16 with respect to repair
Rs. 30 lakh was siphoned off in the bargain by selling work of Hanuman Cheruvu in Karasanapalli Pancha-
the soil. yat of Panjani mandalam in Chittoor district. Instead

Emperor of Corruption 167


Rs. 21,000 Crore
Siphoned Off in Power Purchases
Power Purchase Agreement with Simhapuri Energies
for 12 Years at the Rate of Rs. 4.80 per Unit
Rs. 21,000 Crore Burden on Discoms
Elaborate Plan to Ensure that CM's Aide Gets the Loot
Andhra Pradesh government has approved the this time.
purchase of power from Simhapuri Energies owned by There was all-round criticism in the public hearing
Nama Nageshwara Rao, former MP and Chandrababu conducted by the APERC on the matter. The principal
Naidu's close associate. The government approved the secretary of the Department of Energy, Andhra Pradesh,
purchase of as much as 400 MW power from this private wrote to APERC in November 2017 that the government
wind power compny. would reconsider its decision on buying power from
The AP government did not bat an eyelid before Simhapuri.
agreeing to Rs. 4.80 per unit, which is unheard of in any Following this, the matter was not taken forward.
market. Moreover, it went in for a power purchase However, in August 2018, the Energy Department has
agreement for a period of 12 years. This decision of changed its mind and wrote to the APERC informing its
government has burdened the Discoms, the regional latest decision to go ahead with buying power from
power transmission companies, to the extent of Rs. Simhapuri, which had participated in the tendering
21,000 crore. process. Interestingly, while Simhapuri had quoted Rs.
Discoms vehemently opposed the decision. Experts 4.35 per unit at the time of bidding, the government
of the field raised objections before AP Electricity agreed to buy power at Rs. 4.80 per unit. The APERC
Regulatory Commission as the AP had surplus power quietly wound up its public hearing on this matter and
and questioned the need to buy additional power at
such a high rate. However, the APERC hastily concluded Where's the Need for Power Purchase?
its public hearing, which was more of a ritual, in
Hyderabad. On August 10, 2018, and the Power AP produces 67,948 million units while the
Purchase Agreement was signed. demand is for 57,018 million units. In other words,
there is a surplus of more than 10,000 million units
Kickbacks from Simhapuri as of now. Discoms indeed requested the AP Power
Generation Corporation (APGenco) to stop its
Discoms initially had overestimated the demand for
production and sell surplus power in the open
power supply in AP, assuming that a number of
market. However, not a single unit was sold in the
industries would be attracted to the state. They
open market outside the state.
prepared to buy electricity from private operators and
The government is supporting private players
tenders were called for the purchase of 400 MW of
at the cost of APGenco which is being asked to
power in January 2016. Simhapuri came forward to
curtail its production. Genco's production has to
supply power at the rate of Rs. 4.35 per unit.
forego about 10 million units a day on account of
However, it is pertinent here to note that the state
the purchase of power from Simhapuri. Not only
already had surplus power. Electricity prices had fallen in
will the government end up spending more from
the open market. In this background, there was
the exchequer by paying Simhapuri a higher price,
widespread criticism against the government's decision
but its decision will also affect Genco's production
to purchase power from Simhapuri at a steep price.
and thereby cause steep losses to the state.
Discoms have started expressing their objections from

168 Emperor of Corruption


Rs. 12,332 Crore
Nomination Domination
Works Awarded Directly to Finance Department Objections Ignored
Companies that Offered
Cabinet Resolutions Overturn Wrongs
Commissions
Irrigation Dept. Rs. 9,125 Crore Krishna Pushkarams Rs.254 Crore
Total Rs.
Panchayati Raj Dept. Rs. 1,921 Crore Godavari Pushkarams Rs.57 Crore
Rural Water Supply Dept. Rs. 350 Crore Energy Dept. Rs.50 Crore 12,332.3
Education Dept. Rs. 320 Crore APSRTC Rs. 30 Crore
Crore
Marketing Dept. Rs. 225 Crore R&B Dept. Rs. 30 Crore

GO. 9, which shows Rs. 56.4 Crore worth Polavaram GO. 113 which shows Rs. 142.88 Crore worth
Project awarded contract to BSCPL Infrastructure on contract awarded to PSK-HEL (JV)
nomination basis on nomination basis.
Rule: Contracts should be given on nomination overruling principle. With its help, the Chandrababu
basis only during natural disasters such as cyclones government has institutionalized large-scale corrup-
and drought, which require a war footing response. tion in a very elaborate manner. The government first
In such cases, an Executive Engineer level official can gives the contracts to its chosen companies on nomi-
assign the works worth Rs. 1 lakh or below and the nation basis without obtaining the requisite admini-
Superintending Engineer level official can assign the strative approvals. When the Finance Department re-
works worth Rs. 5 lakh or below. fuses to pay the bills citing the absence of adminis-
Deviation: Once in power, Chandrababu wanted trative approvals, the government obtains the appro-
to give village tanks desilting and repair works under val through a cabinet resolution. In return, the comp-
Water and Tree scheme to his party men on anies of proxies which bagged the contracts would
nomination basis on the pretext of speedy give huge kickbacks to the CM. In the last three years,
completion of works. For this, he increased Chandrababu gifted contracts worth Rs. 12,362 crore
nomination works relaxation up to Rs. 10 lakh. to his favoured companies through nomination
Breach: In all irrigation projects, from Polavaram route. Using the same method, he struck more deals
to Neeru-Chettu, the nomination has become the with his benamis and gifted them the Krishna push-

Emperor of Corruption 169


karams contracts worth Rs. 254 crore. In Madakasira equipment maintenance were given to TDP men on
branch canal of the HNSS, though there was no need nomination basis.
for another lift (in 52A package), the CM has helped
the contractor make another Rs. 52.41 crore by addi- Rs. 320 Crore in the Education Dept.
ng it. Thus, he has been giving away thousands of The Education Department has got Rs. 2,600 crore
crores worth contracts on nomination basis in return SSA funds. Using these funds, the TDP government
for huge bribes. gave Rs. 320 crore worth contracts to its favoured
Babu's Obsession with 'Nomination' companies on nomination basis. The break-up of the
contracts is- Rs. 180 crore for uniforms, Rs. 30 crore
Chandrababu Naidu has made thousands of
for teaching aids, Rs. 25 crore for the tabs for DEOs
crores of rupees by awarding the contracts of Food
and the DDEOs, Rs. 30 crore for school furniture, Rs.
for Work and Neeru-Meeru (Water and You) schemes
20 crore for library books, Rs. 30 for digital classrooms
on nomination basis when he was the CM between
and Rs. 5 crore for solar equipment in KGBV schools.
1995 to 2004. He now has weaponised the
nomination method into a much bigger channel of Rs. 225 Crore in Marketing Dept.
corruption and awarded high-value contracts on
The chairmen of the market yards have been swa-
nomination basis with total impunity.
llowing the revenues of these institutions. Now, they
During 2014-15, 2015-16, 2016-17, he gifted
have found a route for money making - the contract
Neeru-Pragati (Water and Progress) scheme works
works of the market yards. The ruling party leaders
worth Rs. 2,465 crore to his party leaders on
have bagged almost all the contracts in 191 market
nomination. In 2016-17 alone, he awarded the
yards, spread across the state. These market yards
contracts worth Rs.1,238 crore to his party leaders on
have Rs. 500 crore income and give works worth Rs.
this basis. He awarded most of the Polavaram works
100 crore every year. Two-thirds of this works, i.e. Rs.
through this route with the pretext to complete the
75 crore-worth works are being awarded on a
project at the earliest. The work of 6th and 7th
nomination basis. That means the works worth Rs.
packages of Polavaram right canal ( worth Rs. 578
225 crore were given directly to party leaders in the
crore) were given to BollineniSeenaiah, a close
last four and half years, against huge commissions.
associate of Chandrababu, on nomination basis. The
5th package of the left canal work (of Rs. 142.88 Rs. 50 Crore in Energy Dept.
crore) was gifted to Putta Sudhakar Yadav, a TDP
In Energy Department, three contracts- Rs. 25
leader and relative of the finance minister Y.
crore contract for interior decoration in AP Vidyut
Ramakrishnudu. Chandrababu used Transstroy as a
Bhavan in Vijayawada, Rs. 5 crore earthworks for
front company to give Rs. 5,535.41 crore worth
power transmission lines and Rs. 20 crore
contracts to companies such as Putzmeister, Penta,
miscellaneous works in Discoms- were given on
Bauer, L&T, Bekain, Keller and Triveni against huge
nomination basis.
kickbacks from them.
Rs. 1,921 Crore in Panchayati Raj Dept. Rs. 30 Crore in APSRTC
In Panchayati Raj Department, the contracts of A total of Rs. 30 crore RTC works were awarded to
cement roads, Anganwadi buildings and Mandal TDP leaders on nomination basis. The RTC has
Parishad and Nagara panchayat office buildings were collected Rs. 60 crore cess, Rs. 1 from each ticket,
given to TDP leaders on nomination basis. The value from ordinary passengers and gave away Rs. 30 crore
of these contracts is a whopping Rs. 1,921 crore. to TDP leaders on nomination basis. These works
have gone to the relatives of the AP's present DGP
Rs. 350 Crore in Rural Water Supply Dept. and then RTC MD NanduriSambasiva Rao. The Rs. 14
In the Rural Water Supply Department, about Rs. crore worth RTC House construction contract was
350 crore worth contracts of drinking water also given on nomination basis.

170 Emperor of Corruption


Rs. 11,625 Crore
Gone with the Wind Power!
AP Government Gives Green Signal to 41 PPAs Even When Not Needed
The hasty manner in which the
Chandrababu Naidu's
government bought wind power
has stunned the power sector
observers. The experts wrote to AP
government on March 3, 2017,
expressing their reservations
about wind power purchasing
agreements due to their excessive
price. Though the government
stepped back at this point, it
turned out later that it was only a
temporary move.
The government eventually Letter from the Chief General Manager of APSDCL to APERC Secretary
gave its green signal to power dated 03.03.2017 permitting wind power projects' PPAs.
purchase agreements (PPAs) of
wind power and purchased it at
more than twice the cost. Why did
Chandrababu Naidu permit PPAs
at such high costs when wind
power was available for a lower
cost in Gujarat? Was there a
shortage of power in the state?
No. Was there a possibility of
power shortage in near future? News dated 21.12.2017, which said that the rates of wind prices have come
Even this seemed unlikely. What down in Gujarat
was the hidden reason behind
these regular purchases?
News regarding 41 PPAs
Nod for 41 PPAs... between APERC and wind
Overruling the advice of power projects at Rs. 4.84 extra
electricity experts, the Andhra cost per unit.
Pradesh Energy Regulatory
Commission (APERC) went ahead
with its permission to 41 PPAs. The demand for raised by the Energy Department. The AP government
electricity had neither on rise nor there any shortage. behaved in such an unbelievable fashion, despite is a
When the state government went in for private wind weak financial condition, while neighbouring states
PPAs in spite of higher costs, questions were raised. It is such as Karnataka have refrained from entering into
learnt that the Chief Minister was behind this decision. such loss-making PPAs and buying power from cheap
He gave consent for the PPAs despite serious objections sources.

Emperor of Corruption 171


Even When a Unit is Available for Rs. 2.43
Over 6,000 million units of wind power are
generated in Andhra Pradesh each year. It was only after
2014, the wind power sector has entered into a
competitive phase. As a result, the rates of wind power
have eventually come down across the states. When
SECI (Solar Energy Corporation of India) called for open
bids in Gujarat, the wind power companies came
forward to provide 500 MW wind power at the cost of Rs.
2.43 per unit. Spring Energy Pvt. Ltd. and KP Energy Ltd.
offered this competitive price. In other words, wind Letter from APSPDCL Chief General Manager to
power can be bought at this rate. The Andhra Pradesh APERC secretary seeking permission for PPA with
government, however, got ready with PPAs for the wind power projects.
purchase of power at Rs. 4.84 per unit. This shows that
the government is prepared to pay Rs. 2.41 more per On an average, the state has a demand of 156 million
each unit! units per day. Out of this, 96 million units of power can
be generated through thermal units. Another 48 million
Surplus Loot of Rs.11,625 Crore units are being purchased from the centre at a very low
The state government instructed the power supply cost. Hydel units have the scope to generate up to 17
companies to go in for PPAs for 25 years. It would buy million units. Thus, the overall cost of per unit cost of the
840 MW of wind power through 41 PPAs and a power can be kept below Rs. 3.50. Pooling all these
megawatt is equal to 2.3 million units. That means the sources, indeed, the state can have 5 million units
wind power companies would thrust 1,932 million units excess. The question as to why the AP government
of power upon the Discoms. With Rs. 2.41 being paid would want to buy additional power when there is no
additionally per unit, the government would have to demand has been going unanswered.
make an additional payment of Rs. 465 crore every year,
and it would total to Rs.11,625 crore for a period of 25
years.

Huge Kickbacks
Why the AP government was so keen on paying an
additional Rs. 11,625 crore without going through the
process of competitive bidding? The buzz is that huge
kickbacks had been involved in this transaction. It is
believed that the AP State Coordination Committee on
Energy/Electricity, which had raised objections earlier,
gave in to high-level pressure and lent its consent. It is
learnt that it was after private power suppliers met the
chief minister that the approval for the purchase of wind
power was given.

Where is the Need for Additional Power?


While 57 thousand million units was the estimated
demand in 2017-18, the actual power utilization never
went beyond 52 thousand million units. The estimation
for 2018-19 also at around 61 thousand million units.
APGenco's thermal and hydel units are ready to meet
this demand.

172 Emperor of Corruption


Rs. 1,031 Crore
'Temporary' Robbery
Chandrababu spent Rs. 1,151 crore for a building that is
supposed to be completed within the budget of Rs. 120 crore.
Instead of spending Rs. 2,000 per sq. feet, he had splurged Rs.19,183.
Despite the hefty expenditure, the building couldn't endure even
a small rain and has literally become a strainer.

The temporary secretariat building was in water due to a small rain; and its collapsed wall.

Chandrababu government has built a temporary awarded to Shapoorji Pallonji and L&T. Generally,
secretariat at an extravagant cost of Rs.19,183 per sq. maximum of Rs. 2,000 could be spent on a sq. foot to
feet. When the world was stunned at the CM's wasteful construct such buildings and the total cost couldn't
spending, his stooges have praised him of having the have crossed Rs. 120 crore. Several builders are of the
'world class' ambitions. opinion that even the most luxurious building doesn't
The opposition's cry that the temporary secretariat need more than Rs. 5,000 per sq. foot. This cost includes
was only a stop-gap arrangement and didn't deserve the air conditioning facilities and interior decoration,
such a hefty investment had fallen on deaf ears. among others. Going by the construction quality and
However, finally, the opposition stand vindicated when the facilities available in the temporary secretariat, it
a small rain turned the temporary building into a wouldn't have cost more than Rs. 2,000 a sq. foot.
strainer and rainwater could be seen in all the rooms. The government has already paid Rs. 281 crore for
This rain has proved that the hefty investment that the construction of the building and sent proposals to
supposedly gone into the building construction had CRDA for payment of another Rs. 370 crore. The
actually gone into Babu's pocket. government sought Rs. 500 crore more for the
In the temporary secretariat, the CM Block, the developing of greenery and water distribution system.
Assembly and Council buildings and the buildings for That makes the total bill for the temporary building at
different departments to be built in six lakh sq. feet Rs. 1,151 crore, the cost an sq. feet at Rs. 19,183. This
space in G+1 model. The construction contract was episode shows the extent of Chandrababu's corruption.

Emperor of Corruption 173


Steady Hike of Estimated Cost Still, their greed was not satisfied. This time, they have
made CRDA send proposals to the Finance Department
According to the first estimate, the temporary
for another Rs. 370.69 crore. Besides these amounts,
secretariat building at Velagapudi village should have
another Rs. 500 crore will be spent on roads, greenery,
been completed at the initial cost of Rs. 181 crore, which
drinking water pipeline from Tullur lift irrigation scheme
was already on the higher side. However, CM
and other buildings. They have taken the estimated cost
Chandrababu and Urban Development Minister,
from a mere Rs. 120 crore to Rs. 1,151 crore only to pocket
Narayana argued that if the building had to be
Rs. 1,031 crore.
completed by June 2016, to shift the employees, only
Shaporji Pallonji and L&T were capable of completing the No Quality…Only Corruption
task in time. They also increased the estimated cost by
another Rs. 40 crore on the pretext of the need to The state government bureaucrats themselves
complete the building on a war footing. With this concede that the temporary secretariat was fraught with
decision, they have shot up the estimated cost to Rs. 221 corruption. The walls of General Administration Block,
crore. However, the works were not completed by June from which the CM operates, have already developed
2016. Chandrababu and Narayana have personally cracks. The condition of the lifts and bathroom fixtures
supervised the construction work and finally completed; speak volumes about the quality of the construction. The
only for the heck of it. Still, the buildings of the CM Office, employees are totally unhappy about the quality of their
Assembly and Council were not completed. They new building. Everybody is surprised when they come to
increased the estimated cost again by another Rs. 60 know that their CM had spent Rs. 19,183 per sq. feet of
crore and paid Rs. 281 crore. this building!

Rs. 9,000 Crore


Scam in Tenders for Permanent Buildings
Preliminary Cost estimates - Rs.9,000 Crore
Rules bent to facilitate two-fold Increase for kickbacks
The AP Chief Minister has now eyed the permanent and regulations do not come in the way of his plans.
buildings' complex in Amaravati, after having lined his Even the appointment of PMCs was influenced by the
pockets heavily with kickbacks from his crony CM. Here is the complete story.
contractors whom he awarded the contracts of the
temporary building for the secretariat, the assembly and Modifications to Estimated Costs
the legislative council. To award these contracts without
any hitch, the CM had altered the tender rules and The Capital Region Development Authority (CRDA)
eventually gave them the power to hike the estimated has invited the letter of intent from the contractors who
costs. are interested in participating in the tenders for the
According to the plan of the Chief Minister, except construction of permanent buildings complex, which
the chosen contractors, nobody else can get the houses the secretariat, assembly, legislative council, Raj
contracts of the permanent buildings complex worth Rs. Bhavan, High Court and the residences of the CM,
Rs. 9,000 crore. CM is also planning to double the ministers, MLAs, MLCs and the government officials.
estimated costs so that he hid kickback too would The CRDA had provided estimations for the
double. He has appointed the project management construction of 1,02,89,003 sq. feet space- based on the
consultancies (PMCs) to ensure that government rules designs provided by the Fosters Partners- to the

174 Emperor of Corruption


contractors and make changes according to their coterie contractors of the Chief Minister.
feedback. However, later, with a sudden decision, the
government announced that the companies that Rs. 50 Crore to Each PMC
participated in the pre-bidding process alone are In parallel to the tender of permanent building
eligible to participate in the tender bidding process of complex, government has also invited tenders for the
the permanent building's complex! PMCs. These PMCs will have to monitor the construction
of the buildings of state secretariat, HoDs quarters, Raj
Tender Rules Tweaked to Suit Eligibility Bhavan, official residences of CM, Speaker, legislative
of Coterie Contractors council chairman, ministers, chief justice of the high
court, high court judges and officials. Every building
Generally, once a project's internal estimated cost is would have its separate PMC. These tender notifications
determined, the tenders would be called as per the EPC too were tweaked to ensure the appointment of hand-
or LS Open method. (Engineering, procurement and picked PMCs.
construction or Lump Sum Open). However, the It is pertinent to point that PMCs play a key role right
Chandrababu-led government, in this case, introduced a from the stage of submitting estimated costs of the
whole new method. The government asked interested proposed complex to handing over the buildings on the
contractors to submit their proposals for the parts of the completion of the job.
building's complex that they would like to construct. From the fact that the quality of the temporary
However, it has imposed four conditions. They are: 1. secretariat, assembly and council building was anything
the company must have been into the civil engineering but satisfactory even after hiking the costs from Rs. 358
business for the last 10 years. 2. In three between 2012- crore to Rs. 1,030 crore, one can gauge the scale of
13 and 2016-17, the company must have undertaken kickbacks that CM got. It was decided that the
either three projects of similar nature worth Rs. 400 crore construction of permanent building complex should be
each or two projects worth Rs. 600 crore each or one completed by December 2018.
project worth Rs. 800 crore 3. The company must have However, CRDA officials themselves were never sure
designed and constructed the buildings in not less than as to how long this project could take as well as the
10 lakh sq. feet. 4. It must have annual profits of Rs. 300 prospective growth of the estimated costs from present
crore in the last 10 years and have minimum Rs. 300 Rs.9,000 crore! Only one this is certain about this project.
crore cash deposits in the bank. Close scrutiny would It is another milch cow for Chandrababu Naidu,
reveal that all these conditions were imposed to suit the probably the most corrupt Chief Minister in the country.

Loot in Temporary Secretariat


engineering and procurement-construction (EPC).
CAG Flays CRDA in Audit EPC Regulations Flouted
CAG has established that large-scale corruption took CAG carried out the first audit with respect to the
place in the construction of the temporary secretariat in development of the capital region involving the CRDA in
Amaravati. The CAG explicitly mentions that contractors 2017-18. It was established that GO94 issued by the
have been showered with generous benefits while the state government in the past clearly violated the
treasury has been subjected to massive plunder. It has guidelines laid down by the Central Vigilance authorities
also faulted the state government for going ahead with with respect to the tendering process involving the
the project and granting permissions without a proper construction of six building in the temporary secretariat.
survey or investigation. CAG exposed the manner in The government lent its nod to tenders of
which the state government not only helped some contractors whose bids were higher. It inflated the
contractors loot the government treasury, but also how internal estimated value from what was uploaded in the
it violated tender regulations and procedures related to initial e-procurement. Though the guidelines on the EPC

Emperor of Corruption 175


procedure are crystal clear saying that no approval can firms to submit their proposals. These two companies
be given beyond a hike of 5%, the government openly hiked the internal estimated expenditure from 62% to
flouted these norms. It went so far as to scrap tenders 85% and submitted tenders accordingly.
which showed a 5% hike and called for tenders again. CAG faulted the government for holding talks with
Contractors submitted proposals designed to get them the two firms instead of cancelling the tenders. CAG also
a profit of 14% in the construction of buildings in the raised objections on the manner in which the
temporary secretariat. CAG noted that the government government hiked the excess tender percentage from
held negotiations with contractors who had bid at 16.24% to 24.75%.CAG revealed that the government
higher rates violating the 5% ceiling in tenders as flouted all guidelines when it came to payment of bills
stipulated in Vigilance guidelines. submitted by these two companies. It also stated that
the two firms in question submitted bills at higher costs
Talks Instead of Cancellation! violating all norms and guidelines. CAG slammed the
The CRDA called for tenders splitting the job of CRDA commissioner for an excess payment of Rs. 40.80
construction of six buildings into two blocks and three crore under government orders to the contractors in this
packages. L&T and Shapurji Pallonji were the only two matter.

First quote estimate submitted by L&T and


Shapurji Pallonji in their tenders. (Amount in crores)
Internal value (company estimated) (1-2 blocks) Price Quoted Excess %
L&T 53.74 106.30 85.71
Shapurji ---- 103.42 80.68
Internal value (company estimated) (3-4 blocks) Price Quoted Excess %
L&T 52.89 95.86 69.81
Shapurji ------- 101.89 80.50
Internal value (company estimated) (5-6 blocks) Price Quoted Excess %
L&T 53.55 92.44 62.03
Shapurji ----- 98.33 73.23
Approvals to tenders after negotiations (prices in crores)
Internal estimate Approved rate Excess percentage
1, 2 blocks (Shapurji) 53.74 67.02 24.71
3,4 blocks (L&T) 52.90 66.98 26.64
5,6 blocks (L&T) 53.56 66.98 25.07

176 Emperor of Corruption


Rs. 8,391 Crore
Kickbacks from Liquor Syndicates
Andhra Pradesh has a total of CM Signature is a Joke
4,380 liquor shops and 800 bars. To
One can gauge what a joke the signature
sell liquor over the minimum retail
of the Chief Minister has become from the
price and run their unauthorised
fact that the principal secretary, revenue
shops, belt shop syndicates shell out
department, Sambasiva Rao's statement that
crores of rupees across 13 districts.
belt shops still existed in the state. Though
The total amount which changed
the chief minister claims that the total
hands through kickbacks in the last
number of belt shops in the state has come
four and half years add up to Rs.
down, the reverse is true-the numbers have
8,391.6 crore.
gone up over the past four and a half years.
Liquor syndicates have set up an efficient
The Break-up of Kickbacks
home delivery system as well. Godowns have
Rs. 3 lakh are being collected been converted into belt shops. Cool drink
from each liquor shop per month shops and drugstores are also being used to
and being passed on to bigwigs in sell liquor, according to complaints which were made to
the government. The Rs. 3 lakh includes-Rs. 1.5 lakh to the call centre set up by the chief minister. Excise officials
sell over the stipulated MRP and Rs. 1.5 lakh to run the who went to conduct searches to crackdown on belt
belt shops. Every month, a total of Rs.131.40 crore is shops in the CM's native district Chittoor came under
being collected from the 4,380 shops in the state to carry attack.
out business in violation of the rules. That puts the total
amount of the kickbacks collected over four and half Excise Minister Minting Money
years (54 months), it would amount to Rs. 7,095 crore.
The excise minister K. S. Jawahar has been making
Apart from this, Rs. 3 lakh is collected from each bar
money from the transfers of officials in the excise
for violating trade practices by indulging in brand
department. Crores of rupees have changed hands in
mixing, among other things. The total amount collected
transfers and promotions in the excise department. For a
from 800 bars in this fashion would amount to Rs. 24
posting to one's preferred place, lakhs of rupees change
crore a month and Rs. 1,296 crore over a period of four
hands. All this activity took place with the excise
and a half years through kickbacks. Excise officials claim
minister's peshi as the hub. Officials got postings of their
that this business is being carried out with tacit support
choice by paying heavy bribes. For instance, a posting in
from the chief minister.
Visakhapatnam district could be bought for Rs. 50 lakh.
This is a reflection of the scale of kickbacks in the excise
Kickbacks for Ministers, MLAs Too
department. The excise minister Jawahar set aside the
Liquor syndicates pass on crores of rupees to transfer rules drawn up by Principal Secretary (Excise), D
ministers and TDP MLAs for this act of selling over the Sambasiva Rao. Then, he made a total Rs. 5 crore as the
MRP rate and running belt shops. One can understand graft in transfers and promotions. Setting aside the entire
the state of affairs from the fact that it was revealed at a list drawn up by the excise commissioner, the minister
review meeting of the excise commissioner that a transferred officers as per his whim and fancy. He
minister from Srikakulam district was being paid Rs. 2 promoted nine deputy commissioners and 20 assistant
crore every month by way of kickbacks. The IAS officer in commissioners and 34 excise superintendents in the
question who had worked as Srikakulam collector and excise department. He also transferred these officials to
later became excise commissioner made these their preferred districts after receiving huge amounts as
statements at a review meeting. bribes.

Emperor of Corruption 177


Rs. 5,817 Crore
Central Funds to TDP Leaders
Central Funds Released for Panchayats Rs. 11,634.37 Crore
TDP Pocketed 50% of It Rs. 5,817.18 Crore

The AP government has generously through the Engineering Division of Panchayati


distributed the rural development funds Raj Department. These local leaders have
provided by the centre amongst its party cadre. pocketed 50% of the funds directly and
While the centre has released Rs. 11,634.37 executed works with the remaining 50%
crore, almost all of it has gone into the pockets amount. Thus, they have pocketed Rs. 5,817.18
of TDP leaders. Chandrababu Naidu has given crore (50% of Rs. 11,634.37 crore) between 2014
all the works of local bodies on nomination and 2017.
basis to his party local leaders so that they can Generally, the Finance Commission and
gain the much-needed financial muscle. NREGS funds should be spent through the local
Out of the Rs. 11,634.37 crore, 50% funds bodies and Sarpanches. However, the TDP
came from the Central Finance Commission and government has weakened the elected
the remaining 50% came from NREGS. From representatives of the local bodies and awarded
these funds, Rs.9,487.01 crore was allocated for the works to its cadre through the notorious
concrete roads, Rs.288.14 crore for panchayat Janmabhoomi Committees, made up of the
buildings, Rs.147.06 crore for Mandal Parishad local TDP rank and file to substitute the local
buildings and Rs.12.16 crore for Anganwadi bodies. These committees have rendered the
buildings. All these works were given on elected representatives powerless and ensured
nomination basis to TDP leaders. that they would have no say in the granting of
The TDP government has been constructing contracts.
concrete roads in villages under 'Wada, wadala Though there was an opportunity to
Chandranna' (Chandrababu in Each Locality) increase labour component in NREGS works to
scheme from past three years. It claims of 100%, Chandrababu government has confined
having constructed 16,810 km concrete roads it to 60% and using heavy machinery to do the
under this scheme. These road works were work. Thus, it has deprived the rural poor of the
divided into smaller contracts and distributed much-needed income and caused the
among the local level leaders of the ruling party migration of the rural people, in search of work.

178 Emperor of Corruption


Rs. 4,000 Crore
Massive Scam in Energy Department
The 'Differences' in Power Purchases From Private Companies is Rs. 15,000 Crore
The Money that Paid as the Bribe is Rs. 4,000 Crore

Under the rule of Chandrababu


Naidu, the AP Energy Department has
become a hotbed of corruption.
According to an estimate, about an Rs.
15,000 crore scam has taken place in
power purchases from the private
players. From that amount, the chief
minister has pocketed at least Rs. 4,000
crore. Purchases to 757 million units,
From the beginning, the CM and his the discoms have bought 13,180 million units
son Nara Lokesh have shown
extraordinary interest in the transactions of the increasing power generation.
APTransco and APGenco, which take care of the The decisions of Chandrababu Naidu have
transmission and generation of power in the caused a heavy burden on the power
state. They have micromanaged the contracts, distribution companies (aka Discoms). Between
power purchase agreements and tenders of May 2014 and October 2015, a total of 13,180
these entities. million units of power was purchased from the
The CM has issued orders to purchase 2,000 private companies by paying not less than Rs.
MW power right after the swearing into the 8,286 crore. Some portion of this power was
office; though there was no need. He has bought at a record rate of Rs. 10 per unit while
started buying power from multiple private the APGenco could produce the same unit at
suppliers with the pretext that the state was in Rs. 4.50. There was a discussion in the Energy
need of additional power. He always preferred Department that the CM and his son made
private power purchases-as they can get huge huge kickbacks from the companies that were
kickbacks- and discouraged the APGenco from benefited from these questionable transactions.

Emperor of Corruption 179


Indian Energy Exchange Laid it Bare

The letter of IEX which exposed AP Government's generosity towards private power companies.

The Indian Energy Exchange (IEX), the country's power at the price of Rs. 1.90 per unit (during nights)
largest power trading corporation through its letter and Rs. 2.71 per unit (during the day time). Despite
to AP Electricity Regulatory Commission (APERC) the availability of power at lower prices, the AP
made it clear that Chandrababu government was Discoms have bought the power at a whopping rate
purchasing power at higher prices despite the of Rs. 5.11 per unit. The IEX has reported this
availability of better options. The IEX offered the questionable practice to the APERC.

In 2015-16 too, the maximum price of the power in the open


market was Rs. 3.77 per unit (24 hours) while night hours it was Rs.
2.72. The IEX has questioned why the AP government could not
utilize this opportunity. (The AP Discoms have placed short-term
power purchase orders for more than 16,000 million units of power
during this period at higher prices.)
The Discoms have proposed to buy 64,706 million units in the
2016-17 financial year. Out of this, the production of APGenco and
the state share from the central grid account for 39,420 million
units. The Discoms must have bought the remaining 25,286 million
units from the private power companies.

180 Emperor of Corruption


23 Foreign
Tours 68 Days

Chandrababu Spends
Crores on Foreign Jaunts
13 Countries... 23 Trips
Investments nil...hundreds of crores of rupees burden on the state exchequer
Chandrababu has been using only charted planes in the last four and half years
Goebbels campaign about 'flood of investments and jobs'

There is little truth in Chief Minister Chandrababu in Davos for four years. In 2018, after the Davos Forum,
Naidu's statements that the state is overflowing with Chandrababu repeated his 2017 stance on consultations
thousands of crores of investments and lakhs of jobs. If with Saudi Aramco to set up an oil refinery in the State.
anything so perfect in the state, it is his life being the CM. No development was seen even after a group of
He spent more than 68 days on foreign tours across 13 representatives from Saudi Arabia were invited to the
countries costing Rs. 100 crore. Most of his tours were to state.
Singapore, China, Japan, United Kingdom, United States, The Chief Minister struck a deal on the capital city
Dubai and Switzerland. master plan with the Singapore companies. No funds
It is clear that no benefits were reaped from were received while his statement on turning the
Chandrababu's attendance in the World Economic Forum Bhavani Island in Vijayawada in line with the famous

Emperor of Corruption 181


Sentosa Island in Singapore remained a statement. On toured Dubai in October 2017 and February 2018.
top of it all, critics felt it was not in the best interest of the Reportedly, he was party to a few financial transactions
state to give away the Amaravati start-up area project to with Abu Dhabi industrialist BR Shetty. Criticism followed
Singapore based companies. after Chandrababu took a halt in Dubai while returning
Despite getting zero results from the Japan tour, from Davos in 2018. BR Shetty organised Chandrababu's
Chandrababu announced he would introduce the tour and programs in 2017.
Japanese language in the state universities. He said he Chandrababu's trip to America on 22 September
would shape Amaravati like Shanghai when he was in 2018 turned controversial after he announced he was
China and like Tokyo when he was in Japan. On his tour invited for a talk by the United Nations Organization, but,
to the United States, the CM said he would build an Aero his statement turned out to be a hoax. He indeed spoke
City in Visakhapatnam with Templeton's support. at an event organised by a private organization that
In the pretext of seeking investments, Chandrababu Chandrababu gave an address.

A Dent to the Exchequer with Chandrababu's Foreign Tours


Chandrababu's foreign tours in the last four Secretary Ajeya Kallam wrote in his book 'Melu
years were incredibly expensive, however, the Kolupu' that Chandrababu uses only special flight
state's revenue deficit never seemed to bother him. and doesn't use regular flights. Also, the foreign
He has been using special flight and chopper, tours of CRDA officials burdened the state's
which are being parked in Gannavaram Airport. The economy so much that a special council for foreign
parking charges and the hotel charges for pilots are tours had to be formed. Even a budget of Rs. 62
borne by the state government. Former Chief crore was allotted for foreign tours and road shows!

Excerpts from Chandrababu's


Speeches While He was on Various Foreign Tours
14 November, 2014 24 November, 2014
Singapore Japan

"Andhra "In this tour, agreements pertaining to boosting agricultural


Pradesh productivity and latest equipment have been made. A 4,000 MW
would be power facility will be set up in Srikakulam district. A joint
turned into a research team of AP government and Sumitomo Corporation will
hub of seek to find new avenues for development. Food processing
tourism and industries would be set up. New ways to improve agricultural
industries. productivity, scientific technology and irrigation methods would
Every district be designed. With Sumitomo Corporation's support, a world-
will have an class Capital would be built."
airport."

182 Emperor of Corruption


20 January, 2015
▼ Davos 11 March, 2016
▼ London

"We are currently studying the Spanish bullet "A replica of The London Eye would be set up
train. Walmart came forward to sell 100 types of in Amaravati. Britain's King's College &
DWCRA products. Pepsico will sell the coconut Hospital would set up a 1,000 bed hospital in
water in Konaseema region. Airbus is interested the State. An office would be inaugurated at
in setting up a manufacturing facility of the C- London's Buckingham Palace."
295 range airplanes in the state."
27 June, 2016 China
12 April, 2015 China
"We will get bullet train to the state. In the World
"Amaravati would be built in the lines of Economic Forum of Tianjin, we have entered into
Shanghai. The China Civil Engineering investment agreement worth Rs. 56,000 crore. A
Construction Corporation would support gas-based fertilizer production plant of Rs. 10,183
Andhra Pradesh's works in providing basic crore investment is going to come up near
amenities and industrial spaces. The State's Krishnapatnam. We have another agreement to
railway stations would be modified to make develop an international industrial park at
them similar to the Beijing railway station. Co- Donakonda in 10,000 acres with an investment of
operation in development of railways, highways, Rs. 43,120 crore. More than 55,000 jobs will be
airports, real-estate and industrial corridors." created from these investments".
9 July, 2016 Kazakhstan
5 July, 2015 Japan
"I am touring Kazakhstan on the advice of
"Amaravati would be built in line with Tokyo.
Prime Minister Narendra Modi. Amaravati has
Mitsubishi Corporation is interested in setting
similarities with this region. The construction
up a research centre in Visakhapatnam."
of Astana is an inspiration to us. I am touring
across countries to bring recognition to AP."
20 September, 2015 Singapore

"Amaravati would be made a world-class city. 11 July, 2016 Russia 6 May, 2017 United States
Thullur will be developed in line with "An agreement has "Templeton organization
Singapore city. Iskandar company of Malaysia been made for setting would be roped in to
is interested in building Amaravati." up a Marine University." develop Vizag."

22 January, 2016 Davos, Switzerland


October 2017 London, Dubai, America
"Lockheed Martin came forward to set up a "I had toured Chicago, Iowa and New York in
defence equipment manufacturing facility in America tour. 70 IT companies are interested
AP. Another organization is ready to set up a in setting up companies in AP. They will cater
Mega Textile Park worth Rs 2,000 crore. Infosys to 8,000 jobs. With the $550 crore worth Aero
is interested in building a huge campus in City, 20,000 people will get jobs. The Al-Arfaj
Visakhapatnam." Group is ready to set up a petro-chemical
complex and an LNG terminal."
February, 2018 Dubai
"The Phoenix Group will set up the
largest rice mill." 22 Spet, 2018 Unites States

13 April, 2018 Singapore Chandrababu's trip to America turned


controversial after he had announced he was
No announcement was made. invited by the UN to give an address on UN.

Emperor of Corruption 183


Rs. 23.72 Crore
Cost of Babu Propaganda
Cost of Holy Dip at Krishna Pushkarams - Rs. 2.41 Crore
Cost of events in Guntur District - Rs. 2.41 Crore
Cost of Maha Sankalpam Event- Rs. 3.05 Crore

The costs of Chandrababu


Cost of the CM's Activities in Guntur District (In Rs.)
Naidu's daily tours and events
would send anybody's head Event Cost
spinning. He spent crores of Chandrababu dip at Krishna Pushkarams 2,41,91,500
rupees on the ceremonies and
events that could be completed
CM' visit of Kotappa Konda 29,16,199
with thousands of rupees. Any Dharma Porata Deeksha 99,29,331
activity is today being turned Mahasankalpa Deeksha at Nagarjuna University 3,05,03,702
into a mega event with it cost Teachers' Day at Police Parade Grounds 59,81,116
running into a few crores. For a Janam Bhoomi - Our Village 95,81,559
single holy dip at Krishna
Great Confluence of Rivers
pushkarams, he has spent a
mind-blowing Rs. 2.41 crore. In Krishna and the Godavari 21,61,331
Guntur district alone, the Chief Inaugural ceremony of AIIMS at Mangalagiri 57,04,463
Minister has spent more than Water and Tree Programme 62,05,927
Rs. 18,26,73,821 on the Capital City Inaugural Ceremony
inaugural ceremonies,
conferences and other events.
@ Uddandarayunipalem 5,13,75,434
Inaugural Ceremony of Govt. Offices
Complex @ Velagapudi 13,61,802
Inaugural Ceremony of Assembly Building 28,28,162
Inaugural Ceremony of Administration
Building in the Capital 71,23,284
Inaugural Ceremony of Start-up Area Project 25,71,450
Event in Narasaraopet and
Sattenapalli constituencies 59,63,959

184 Emperor of Corruption


Rs. 2,615 Crore
Chandrababu's Splurge in Four Years!
Crores of Rupees Spent on Phony Events
Political Meetings Funded from State Exchequer
Costly Renovations to Official Residences, Special Flights
Hungama in the name of Janmabhoomi Meets,
Nava Nirmana Deekshas and Happy Cities Summit
Expenditure on Temporary Secretariat
and Other Facilities Reached to Rs. 1,100 Crore

Despite the State's revenue deficit, Chief capital city. Additionally, the budget for
Minister Chandrababu Naidu is in no mood to temporary Secretariat was increased to Rs. 1,100
control his unnecessary expenses. In the last four crore from an initial budget of Rs. 300 crore in the
years, Chandrababu has spent Rs. 2,615 crore on name of repairs and other developments.
luxuries and promotional events, which have not He has spent Rs.100 crore for renting out
benefitted the state in any possible way. charted flights and choppers to visit districts and
Chandrababu must be the only Chief Minister other states. For three investor summits,
to have conducted promotional events despite Chandrababu wasted Rs. 150 crore, still failed to
zero progress. Now, at the expense of hundreds of attract a single sizable investment.
crores, the Real Time Good Governance helpline On the other side, Chandrababu turned the
number 1100 is being promoted. Instead of Janma Bhumi meetings into promotional events
reducing the expenses and wastage, the Chief although they were said to be conducted for
Minister himself is spending large sums of money addressing public issues. So far, Rs. 125 crore on
on his personal luxuries despite revenue deficit in five of such meetings. Every year, Rs. 20 crore is
the last four years. being wasted in the name of the 'Nava
While seeking donations for building NirmanaDeeksha' on the formation day of state.
Amaravati, Chandrababu is spending public This year, Rs. 61 crore was spent one an event
money for personal promotions. After opting out named 'Happy Cities Summit'.
of NDA, Chandrababu took a U-turn, refused to For facilitating travel of people for visiting the
take special package and restarted his demand for Polavaram project, Rs. 22.50 crore was spent. After
the Special Category Status (SCS). The TDP chief is spending Rs. 250 crore for laying the foundation
spending public money for political meetings in stone in Amaravati, the Chandrababu government
the name of 'Dharma Porata Deeksha' for the SCS. further spent Rs. 100 crore for conducting events
Not a single permanent structure has been for the administrative city, seed capital and
built in Amaravati despite spending more than Rs. inaugurating Highways. Yet, no construction was
100 crore on three inaugural ceremonies of the carried out in the capital city.

Emperor of Corruption 185


Chandrababu's Unnecessary Spending- Details
Special Flights and Chopper Travel Rs. 100.00 crore
CM Office in Hyderabad (L-block) Rs. 14.63 crore
CM Office in Hyderabad (H-block) Rs. 6.29 crore
Lake View Guest House (Hyderabad) Rs. 9.47 crore
CM Office Furniture Rs.10.00 crore
Madinaguda Farmhouse &
Rented House in Jubilee Hills Rs. 04.37 crore
Irrigation Guest House,
CM Camp Office in Vijayawada Rs. 42.00 crore
CM's Special Bus Rs. 05.50 crore
First Inauguration of Amaravati Rs. 250.00 crore
3 inugurations of Amaravati Rs. 100.00 crore
Consultants for Amaravati construction Rs. 300.00 crore
Temporary Secretariat, other repairs Rs. 1,110.00 crore
Amaravati Master Plan Rs. 115.00 crore
Janma Bhumi Programs Rs.125.00 crore
Nava Nirmana Deeksha Rs. 80.00 crore
Road Shows and Foreign Tours Rs. 120.00 crore
Polavaram Bus Tour Rs. 22.50 crore
Happy Cities Rs. 61.00 crore
Investor summits Rs. 150.00 crore
Total Rs. 2,615.76 crore

186 Emperor of Corruption


Babu's Hand in AirAsia Scandal?
Chief Minister Chandrababu Naidu in AirAsia scam too
The AP CM Chandra Babu Naidu has
once again caught on audio tapes.
While last time he was caught red-
handed in Cash for Votes scam, his
name has come up this time in the
tapes of AirAsia scandal. His name has
come up- along with the name of
Ashok Gajapathi Raju, former aviation
minister- in the audio tapes of the calls between the Malaysia-based AirAsia group
CEO Tony Fernandes and the former CEO of AirAsia India MittuChandliya. These tapes,
which were reviewed by the Business Today daily, have shown how Chandrababu
Naidu has become a person to go for the corporates to secure favours.

In the AirAsia tapes, Tony Fernandes who was aviation ministry for withdrawal of this rule.
worried about the slow progress of AirAsia business However, the existing airliners such as Spice Jet and
in India had instructed the group country CEO to do Jet Airways successfully resisted the AirAsia's
play 'dirty' to get permits for international routes. demand.
Mittu replies to him saying he knew exactly the Still, the 5/20 rule was dropped in June 2016, as
person who could help them with the five-year rule then civil aviation minister Ashok Gajapathi Raju had
and boasts about his closeness to the then aviation favoured its removal. He allowed all the airliners that
minister AshokGajapathi Raju. Mittu further tells have 20 planes to go international irrespective of
Fernandes that if they could play nice with their experience in the domestic market. This
Chandrababu Naidu, they would get everything. This decision has heavily benefitted AirAsia and Vistara
discussion about the possible role of the AP CM and Singapore Airlines. Thus, AirAsia- which has started
his party minister has raised quite a few eyebrows. its operations only two years ago- could secure
licenses for international routes.
AirAsia Scandal
Malaysia-based budget airliner AirAsia has Scandal Busted
entered the Indian aviation market in collaboration The internal strife in Tata Group between Ratan
with Tata group in 2014. However, then, the licenses Tata and Cyrus Mistry brought this scandal out. The
of international routes were given to the airlines that ousted Chairman Mistry had alleged that AirAsia had
have five years-experience in the domestic market spent about Rs. 22 crore to get the international
and 20 planes. This was called as 5/20 rule. The new route licenses. These allegations prompted the
entrant AirAsia had heavily pressurized the civil Enforcement Directorate (ED) into action and the ED

Emperor of Corruption 187


officials had questioned MittuChandilya in March leader KambhampatiRammohan Rao could also be
2017. Then CBI has further probed the allegations seen.
and filed cases against Fernandez and several other
officials of the company. The AirAsia has paid Rs. The Tapes
12.28 for its lobbying contract and the CBI is of the
opinion that this amount was used to bribing the The Business Today has published a portion of
Indian officials. the leaked audio tapes. This conversation has taken
place between Tony Fernandes and MittuChandliya
Hyderabad-Based Scandal in presence of a prominent lobbyist Rajendra Dubey.
Proofs show that entire scandal has taken place Here is the conversation:
in Hyderabad. Reportedly, the AirAsia board meeting Tony Fernandes: "I am going to lose money. This
was convened on March 21, 2015, in Hyderabad is going to take a long time if we have done it the
Novotel hotel to rope in Singapore-based HNR clean way. I say we do it the dirty way, but I want to
Trading Pte. Ltd. to lobby for the favours. Money get international routes faster,"
Control website has published the AirAsia board of MittuChandliya: "Sure sir…should I do it the
directors' decision- which was taken in this meeting- dirty way?"
to appoint the lobbyist HNR Trading Pte. Ltd. for Tony Fernandes: "Just do it. I was not open to
lobbying. doing it for the license…We are too slow. I am not
Tony Fernandes instructed to have a local person going to waste another 20-30 million digging
for lobbying and Rajendar Dubey of HNR Trading around. 3-4 million - whatever it takes."
was selected for the task. By then, Chandrababu MittuChandliya: "I exactly know the person who
Naidu was still based out of Hyderabad as these can help with the five-year rule. From the regulatory
developments had taken place before the Crores for standpoint, we need an entirely different strategy.
Vote scandal. He changed his base to Amaravati only We have to go top and all the levels down."
after the scam. All these developments point out to Fernandes says that he is not going to get
his possible role in the AirAsia scandal. A Malaysian involved. He asks Chandilya and Dubey to negotiate
company roping in a Singapore-based lobbyist in a because they are on the ground. "It has to be you
meeting happened in Hyderabad to lobby for ultimately. If you go international, I will give more
international routes gave rise to too many questions. planes," Fernandes tells Chandilya.
Presently, the Central Bureau of Investigation MittuChandliya: "Chandrababu Naidu is an
(CBI) is probing the AirAsia scandal. The CBI has efficient man. He is a potential prime minister
established that AirAsia had bribed the Indian candidate, but he is now the chief minister of
officials to get licenses for international routes. In the Andhra Pradesh. His finance minister is now the civil
background, the leakage of conversation between aviation minister. If you play nice with Chandrababu
the AirAsia officials and their discussion about the Naidu, we will get everything…The minister told me
AP CM has become a sensation. The pictures that he doesn't want to be seen physically with me
showing the proximity between Tony Fernandes and that much, but you tell me what you want. This guy
Ashok Gajapathi Raju have made rounds in the is like [Narendra] Modi. It's good to have him on our
social media. In one of those pictures, the TDP senior side.

188 Emperor of Corruption


Rs. 2,176 Crore
Short Tenders for Five Towers
Estimated Cost Rs. 2,176 Crore Plans to Hike Costs for Kickbacks
The Capital Region Development Authority
(CRDA) has trampled upon all the rules and
regulations while calling the tenders for the
construction of five towers, which it claims to of
international standards. Generally, short tenders
would be invited in the times of emergency. In
short tenders, only 15 days time would be given
to submit the bids. In this case, already there is a
temporary secretariat and there is no need to
build a new office urgently and shift into it. Still,
the government has called for short tenders for
the permanent secretariat buildings. It has
shocked everyone by doing so.

The CRDA gave 14 days time to submit the bids. The holidays, you are left with only 11 working days.
government is supposed to follow all the rules and Construction firms are of the opinion that awarding
regulations while inviting the tenders for even a small works worth Rs. 2,176 crore within a time frame of just
work worth Rs. 5 crore to Rs. 6 crore. In this case, the total 11 days was unprecedented in the history of tenders.
estimated cost was Rs. 2,176 crore and yet, flouting all
regulations, short tenders were called. This unusual Denying Others the Opportunity
measure indicates the massive irregularities that are It is clear as daylight that the intention of the CRDA
taking place in the development of the capital city. was to award these high-value tenders to a few favoured
companies. If sufficient time was given, national and
Tenders in 11 Days? international companies would also have participated in
The CRDA called for tenders for the construction of the process. The short time frame was aimed at
five towers for the permanent secretariat, breaking up preventing the other companies from gathering data
the works into three packages on April 26, 2018. Tenders and insights of the work and preparing requisite
were called for towers 1 and 2 under the first package of documents. That ensures the participation of a few
Rs. 895 crore, towers 3 and 4 under the second package chosen companies that already have a backdoor deal
of Rs. 751 crore and CM's tower under the third package with the chief minister. So far, all the major contracts of
of an estimated cost of Rs. 530 crore. It was stated that Amaravati have been awarded only to a few companies
the tenders could be downloaded from the e- by subverting the tender bidding process. It was clear
procurement website from May 2 and submitted by May that the government sought to award the permanent
16. In other words, bidders were given a period of just 14 secretariat contract also to these companies. The short
days to submit their proposals. If you exclude the tender process would knock out the other firms out of

Emperor of Corruption 189


the race and hand-picked companies would make the bids. Under some special circumstances, a time frame of
cut. 21 days is given. In case of natural calamities, VVIP visits
and such scenarios 21 days time would be given to
Terms and Conditions complete the tender submission process. In worst case
Generally, as a matter of norm, any government scenarios, 15 days time would be given. In the case of the
department would give 45-days time for submission of construction of a project like the permanent secretariat,
tender bids. In case of urgency, the time frame would be the CRDA giving 14 days time for the submission of
reduced by 15 days, giving them 30 days to submit the tender documents was nothing but a scandal.

Rs. 2,000 Crore Loot


Amaravati Bonds - Total Loss To State
The Investors are Cronies
Franklin Templeton Gets Land at Throwaway Price

The is said that Franklin Templeton bought 62.5% of


the so-called Amaravati bonds of Rs. 2,000 crore, issued
by the Capital Region Development Authority (CRDA).
Moreover, there were key TDP leaders behind this
drama. In truth, no company invests more than 5 per-
cent of the government bonds. If it is really attracted to
the offer it could invest up to 10 percent, but no fund or
company would buy an unusual 62 percent of the issued
lot.
Interestingly, Franklin Templeton bought 62.5 % of
the bonds and the amount of investment would be Rs.
1,300 crore. A.K Capital, another company which
invested in the bonds was indeed the lead manager
(arranger) and advisor of the bonds issue. However, the
advisor became an investor and bought 25 percent of
the bonds. The Aditya Birla group bought 12.5% stake in
the bonds.
Story Behind the Scenes
Several interesting stories are doing rounds with
respect to Franklin Templeton's investment in the bonds.
It is said that Chandrababu's cronies invested heavily in
some of the funds of Franklin Templeton. The financial
firm ploughed back the same funds in the Amaravati subscribed as anticipated, A.K Capital which had been
bonds. Thus, the higher interest being paid by the functioning as an arranger conveniently turned into an
Chandrababu Naidu government goes back into the investor.
pockets of his cronies minus some charges. As part of It would be pertinent to recollect that Chandrababu
this master plan, Franklin Templeton alone came Naidu had allocated 40 acres of land worth Rs. 400 crore
forward to buy the bonds, hence, got the lion share. to Franklin Templeton in the Madhuravada area of
Supposedly fearing that the issue was not getting Visakhapatnam, for a throwaway price of Rs. 12.8 crore

190 Emperor of Corruption


(Rs. 32 lakh per acre). While the government leased out onus of getting investors rests upon this company. In the
the land to other firms for a period of 33 years, in the end, it turned into an investor and acquired 25% of the
case of Franklin Templeton, it decided to go in for an stake or Rs. 250 crore worth bonds. By investing in the
outright sale. same bonds that they manage, A.K Capital has flouted
Franklin Templeton's headquarters in California, US, SEBI rules and regulations.
is in not more than 10 acres. It employs 9,400 personnel
all over the world with the highest number being in the Despite Electronic Platform…
USA. While it has 10 acres for its US office, in In 2018, SEBI had launched an electronic platform to
Visakhapatnam, it was allotted 40 acres at dirt cheap do away with the involvement of arrangers and the
price against an offer of 2,500 jobs which it promised to expenses incurred on their account. Entities which issue
provide. bonds over Rs. 200 crore can avail themselves of this
While allocating this land, the government has set platform to invest without the involvement of a lead
aside the suggestions of Dinesh Kumar, Principal manager or arranger. This arrangement helps reputed
Secretary, who said that not more than 10 acres should firms. In such a scenario, investors should queue up
be allotted to the firm. In the whole of India, Franklin lured by the high rates of interest. In this case, however,
Templeton has just 600 employees. One can well the lead manager was picked by the Chandrababu
imagine the time it would take for the company to Naidu himself, paid heavy fees and hand-picked
create 2,500 jobs in Visakhapatnam. Unfortunately, this investing firms to the part which clearly points to the
promise is not also time bound. underlying conspiracy behind the entire matter.
The interest rates in the US are not more than 4%. In
India, government bonds interest would be between 7- Covering up Irregularities with Lies
9%. In such a scenario, Chandrababu government issued
There's not a grain of truth in the government's claim
bonds which would fetch an interest of 10.32% per
that it had maintained the complete transparency in the
month and 10.78% annually. The reason behind gifting
issue of Amaravati bonds. The public had no access to
land to Franklin Templeton which invested so heavily in
invest in the bonds. Under duress, the AP government
these bonds is not difficult to comprehend.
said that about 59 members had invested in the bonds
while revealing the names of just three investors-
From Advisor to Lead Manager/Arranger
Franklin Templeton, Aditya Birla and AK Capital. Scrutiny
The second company that invested in Amaravati revealed that 95% of the stake is held by Franklin
bonds was A.K Capital, which first started off as an Templeton and these two other entities under various
advisor and later lead manager, arranger. Basically, the schemes.

GO Violated!
The GO spelt out clearly that the government Normally, there would be no reason to suspect
should stand guarantee to Infra bonds only if the the Aditya Birla group, which holds a 12.5% in
interest rate is below 6% and 8% if loans are Amaravati bonds. However, there is room for
borrowed from government institutions like HUDCO. suspicion because both the companies (AK Capital
The government should stand guarantee if funds are and Aditya Birla) have a common director. Subhash
raised through bonds only if the interest rates are Chandra Bhargava, a director on the AK capital
lower than term loans offered by commercial bonds. Board is also a director on the Boards of AB Nuvo, AB
Currently, the base rate offered by SBI is 8.95%. capital, AB Sun Life pension, AB financial services
However, finance department officials point out that and AB My Universe Ltd. Quite a few stockbrokers
offering an interest rate of 10.32% on Amaravati say that this director is closely associated with a top
bonds with the government standing guarantee is government functionary in Andhra Pradesh
in gross violation of the terms of the GO. government.

Emperor of Corruption 191


Rs. 1,827 Crore
Corruption Ails Health Department
Rs. 1,827 Crore Works Awarded to Favoured Contractors
Plunder in Name of Box Tender
Public Health and Family Welfare Department of Court Admonishes...
Andhra Pradesh is suffering from dangerous levels of
Tenders were called for the ultra sinology devices,
corruption. Though tenders should be called through e-
which would be useful for the pregnant women. A
procurement, the state government has introduced 'box
company called NRI stood as L-1 in this tender. However,
tenders' method and gifted crores of rupees to
the tenders were cancelled overnight and given to some
corporate companies against kickbacks. In the box
other company. Protesting this, the L-1 company has
tender method, tender bids have to be dropped in a box.
gone to court. The court has ordered to pay Rs. 10,000
Everybody, from the ministers to commissioners, made
fine and compensation to the L-1 company and cancel
huge money from these contracts. Even the
the tenders. Not just this case, there are quite a lot of
admonishments of the courts had no effect on them. In
cases are in pending on Chief Minister Health Centre,
the last four and a half and years, Public Health
108 scheme and Chandrnna Mobile Clinics. The officials
Department has awarded Rs. 1,827 crore worth
have been attending one or other court case in
contracts through tender box method. After 2014, the
Hyderabad. Several complaints were filed at Anti-
department has put away the e-procurement system
Corruption Bureau and Vigilance Department on quite a
and totally sidelined Andhra Pradesh Medical Service &
few tenders.
Infrastructure Development Corporation
(APMSIDC), which was the nodal organisation Privatized Schemes, Their Values
for procurement. The commissioner of Family
Welfare Department has started inviting box Tender/Scheme Date Organization Value
tenders, informing the chosen companies (In Crores)
beforehand and awarding the contracts. Blood tests 04.10.2015 Medall 300
Radiology 14.10.2015 Sri Krishna 28
Commissions Only CT Scan 14.10.2015 -- 30
Government agencies colluding with the Dialysis 01.06.2016 NephroPlus 35
contractors- for bribes and kickbacks- would
104 Vehicles 2015 Piramal 240
severely impair the welfare of the people. Such
results were quite visible in the case of CM Health Centres 06.06.2016 Apollo, eVaidya
corruption of the Public Health Department. Dhanush 284
The department has decided Rs. 235 for testing 108 Vehicles 27.06.2016 GVK 240
a blood sample. About 15 tests could be done Baby healthcare Kits 21.06.2016 AnithaTexat 35
with one sample. With the new decision of the
Basavatharakam Kits 30.10.2017 - 50
department, Rs. 235 has to be paid even if one
test is done. Generally, doctors prescribe two to Medtech Zone 28.11.2016 Lanco 500
three tests and they should costs anywhere Gamon Radiation 12.09.2016 Microtrol 17
between Rs. 35 and Rs. 40. However, an Rs. 200 Electromagnet 20.11.2016 TUV 45
excess payment is being done now. Though Biomaterial 28.11.2016 TUV 42
tenders were called for MRI scanning machines
3D Scanning 24.11.2016 Dakshin Online 35
in five teaching hospitals in a public-private
partnership mode, they have not started so far. X-ray, CT Scan 12.09.2016 CURA Healthcare 45

192 Emperor of Corruption


Rs. 1,723 Crore
MedTech Park Becomes Hotbed of Corruption
Estimated Cost - Rs. 709 Crore Revised Cost Rs. 2,432 Crore
When the Andhra Pradesh Medical Technology Park
(MedTech Zone) was inaugurated, Chandrababu Naidu clai-
med this park would produce world class medical devices
and help to bring down the prices. However, in practice, he
has turned this project into an instrument of massive
corruption. He drew a plan to bag the kickback of Rs. 1,723
crore. Here is the full story.
Escalated Estimations
MedTech Zone got 270 acres land in Visakhapatnam
opposite to the Vizag Steel Plant. Dr. Jitendra Kumar
Sharma, a health care expert, as the CEO and renowned
Orders issued stating
consulting company KPMG has got the contract to prepare Directors wrote to
that contract has been
the detailed project report (DPR). According to KPMG, the principal secretary health,
Poonam Malakondayya to curb given to Lanco for
project would require Rs. 709 crore; Rs. 500 crore for
corruption in the development of development of
development, Rs. 200 crore for basic infrastructure and MedTech park. MedTech park.
another Rs. 9 crore for miscellaneous purposes. Despite the
DPR estimations, the government has escalated the cost
did not respond to the letter, the management team has
estimations. Generally, when the DPR price is not sufficient,
conducted a press meet on August 2, 2017 and this did not
it coul be increased by another 5 percent. However, the AP
go down well with the government. It immediately arrested
government has hiked the price by 350 times from Rs. 709
Judish Raju on the pretext of leaking confidential
crore to Rs. 2,432 crore, which is higher by Rs. 1,723 crore.
information and sent to Visakhapatnam prison. Some of the
The CEO Dr. Jitendra Kumar Sharma shot up these rates
other employees were also arrested by the government.
overnight at the behest of the state government and made
The government immediately removed the hiked cost
the total cost Rs. 2,432 crore.
estimation from the website of the MedTech Zone and
Rigged Tenders uploaded the new information on the website.
Then the construction works were given to Lanco Infra,
Opaque Retendering
which a bank loan defaulting company. The method of con-
tract awarding was same. While 11 companies competed Prominent Telugu daily Sakshi broke a story on the going
for the contract, nine were disqualified during the first pha- corruption in MedTech Zone on August 6, 2017. This story
se of the bidding. The remaining two companies were Lan- has shaken the government and it immediately cancelled
co Infra and NCC. Lanco Infra was declared as L-1 and the tender. However, the state government has already paid
awarded the contract. This was done despite the company Rs. 43 crore to the company. Now, the details of this amount
failing to submit the salvation certificate which needs to be in unavailable to the public or media. The government has
obtained from the banks and submitted during the time of stated that it had selected another company for the
financial bid. MedTech Zone contract. However, the details of the new
contractor and estimated costs are not available in the Zone
Resistance Silenced website. The official of the MedTech Zone has refused to
Shaken by the sheer amout of graft, the management divulge the details under the Right to Information Act. Now,
team of the Zone wrote to the Special Chief Secretary, it is almost unclear as to what the state government is doing
Healthand Family Welfare, Poonam Malakondaiah. As she with the much-touted medical technology project.

Emperor of Corruption 193


Rs. 333 Crore
Benami Bags Fibregrid Project
The Value of Project Awarded to Harikrishna Prasad,
an Aide of Nara Lokesh, is Rs. 333 Crore
Andhra Pradesh has introduced the fiber grid
project with the sole objective to control the TV
channels in the state. By controlling this grid, the
government intends to halt the broadcasting of any
programme or piece of information that was critical
of Chandrababu Naidu. To develop the necessary
infrastructure for this media control programme, his
government has awarded a contract worth Rs. 333
crore to a company named Tera Soft.
This company was blacklisted by the AP state
The GO that finalised the tender rules.
government on May 11, 2015, for its failure to
implement the contract for e-pass system for the
public distribution shops. Tera Soft has one more
black mark. Its owner Vemuri Harikrishna Prasad was
arrested by Mumbai police for the theft of an
electronic voting machine. However, these The 5th page of the GO dated 26.98.2015 showing
shortcomings did not stop Chandrababu Naidu from the Appointment of Harikrishna Prasad as a
awarding the contract to Tera Soft due to his member of High-Level Tender Approval Committee.
closeness to the company owner Harikrishna Prasad. He awarded works to his own company-which was
Harikrishna Prasad has taken care of the social blacklisted while he was a member of Tender
media campaign of Telugu Desam Party (TDP) Approval Committee.
during 2014 elections and also a key person in
Heritage Foods, which is owned the CM family. They was a clear case of conflict of interest. Thus,
have one more connection- DevineniSitaramaiah, Chandrababu has entrusted the contract to a
who was a director of Heritage Foods also served as company that is owned by one of his cronies.
a director of Tera Soft until September 30, 2014. Chandrababu Naidu did this in order to inflate
According to the reliable sources, the decision to the clout of Harikrishna Prasad so that the later
award the fiber grid contract to Tera Soft was made could 'partner' with big IT corporations such as
some time back. The CM then had the tenders Cisco. The CM wanted to award the contracts for
floated and appointed a high-level committee with bigger projects such as UWIN and E-Pragati to Tera
Harikrishna Prasad as one of its members. By this Soft by showing the Cisco and other major
time, Harikrishna Prasad was a director of Tera Media companies as the implementing agencies of these
Cloud Solution which controls the Tera Soft; and this contracts.

194 Emperor of Corruption


Naidu's Plans to Shutdown Electronic Media!
It is not difficult to understand why Chandrababu
Naidu wants his government to enter into cable TV
business, which is in the hands of the private sector in
spite of his reputation for privatisation of public sector
units. In his four and a half years of rule, he could not
fulfill a single poll promise successfully. To make matters
worse, corruption is ruling the roost in the state. And no
matter how hard his friendly media outlets try to back
his regime, people have started believing the version of
news channels that are critical of Chandrababu. The CM
is losing his sleep over growing resentment among the
people. That's why he has started the Fibernet project,
through which he would like to silence the critical voices
and opposition parties. The CM wants to have a vice-like
grip over cable transmissions of all media channels
through the Fibernet so that he could stifle any telecast
that is critical of his government. So, it's no more about
the media sensor or any other form of control; it's about
shutting down the media transmission at once.

Centralised Remote Control


Normally, the governments wouldn't have any role
in transmissions by cable operators. However, the
government can control the transmission when it is television through set-top boxes. These set-top boxes
done through Fibernet. The OPSFN (Optical Premises are being manufactured in China.
Internet Network) and IPTV (Internet Protocol Television) While the government in negotiations with the
boxes would be linked to the Fibernet server. And this Chinese companies for the set-top boxes, representa-
makes it possible for the governments to control tives of Amar Raja and Yaga Technologies met the IT
transmissions from a central point. Minister Nara Lokesh. Incidentally, Amar Raja is owned
Transmission of any anti-government protest or by a TDP MP Galla Jayadev and Yaga Technologies bel-
speeches by the Opposition leaders can be taken off air ongs to a TDP leader from Krishna district. Upon their
from the central point set up at Amaravati. It is for this persuasion, the state government agreed to award the
reason that the AP government has taken the Fibernet set-top box manufacturing contracting to these two
project on such a massive scale. Hiding the real motive companies instead of Chinese ones. However, these co-
behinds the project, the AP government is trying to lure mpanies have no manufacturing capacities. They only
people by selling the idea of Internet, Cable and assemble the set-top boxes after importing parts from
Telephone as a three-in-one option at a cheap price. China.
Therefore a set-top box should not cost beyond Rs.
Contracts to Cronies 2,000. However, in this case, the government got ready
In fact, the set-top boxes scam began with the AP to pay Rs. 4,000. And the buzz is that about Rs. 1,000
Fibernet project. This contract was awarded to the CM's crore had changed hands in this transaction. Amar Raja
close relative who owns TERA Software. Serious and Yaga Technologies have no expertise in the
allegations were made about the corruption in the manufacture of set-top boxes and do not have technical
project. Fiber optic cable to the extent of 23,500 km was experts who can fix glitches if any. In spite of all these
laid by using the electric poles. The project was kicked drawbacks, the government decided to go ahead and
off in the name of providing Internet, telephone and award the contract to these two companies.

Emperor of Corruption 195


additional Rs 1,000. In other words, the total cost
A scam of Rs. 4,500 crore would amount to Rs 2,500. However, the government
A household cable TV set-top box would typically is trying to shove these set-top boxes down the
cost Rs. 1,500. In this case, however, the government throats of the people at Rs. 4,000 each. This would
wants people to buy it at Rs 4,000. When questioned mean that each subscriber would have to cough up
about the exorbitantly high price, the government an additional Rs. 1,500. There are 3 crore cable
defends itself by claiming that it is providing the TV connections in Andhra Pradesh and if all of them
with HD quality along with telephone and internet. were to be provided set top boxes at Rs. 4000 each,
Experts, however, say that this can easily be done by the total cost would run into Rs. 12,000 crore.
making some electronic modifications along with an Excluding actual costs, Rs. 4,500 crore commissions
upgraded RAM, adding that this would at best cost an would change hands.

Rs. 240 Crore


Ruling Party MP's Rate Prevails
Transco Optical Fibre Cable Tenders' Scam
A TDP MP from the Rayalaseema, who is known SDG Not Eligible
to make headlines with his controversial
Transco divided the Rs. 240 crore
statements, eyed Transco projects worth
worth project into 3 packages and
crores of rupees. He brought his proxy into
invited tenders. The first package was
the tender competition despite the
of Rs. 90 crore value, second was of
company lacking the eligibility criteria. He
Rs. 80 crore value and the third was
then pressurised the officials to accept the
of Rs. 70 crore value. Apart from
rate decided by him for the tender. The MP
Indian companies, two Chinese
refused to budge despite the pleas from the
companies competed for this contract.
officials that such mode of awarding would go
To be able to work in India, foreign
against the rules and the Transco would incur a
companies shall fulfil some special
substantial loss.
eligibility conditions. They include - a foreign
company must be incorporated in India and have a bank
Rs. 240 Crore Central Funds
account in this country. Of the two Chinese firms, a firm,
AP Transco decided to go in for optical fibre cables to CPC, fulfilled these criteria. The second Chinese firm SDG
improve its profits and decided to lay 9,000 km-long has failed to fulfil both the criteria and has got
optical fibre ground (OPG) wires across the state. This disqualified during the evaluation of technical bids.
network would link all the towns and cities across the
state and could be used for data transfer by IT and Objections of Engineers Overruled
telecom companies. The transmission corporation
Indeed, it was the MP's family which had submitted
wanted to implement this project with Rs. 240 crore of
the bid in the guise of SDG. The MP exerted tremendous
the central funds. These funds have to be spent within
pressure on officials to award the bid to the firm even
18 months or else they would have to be returned to the
though it had failed to meet the eligibility criteria.
centre.

196 Emperor of Corruption


Eventually, the objections of engineers and technical
experts were overruled and the SDG has got the contract. OPG Wires
Transco supplies power in the state through 3
Transco Put to Loss in Crores? phase power lines and also provided a fourth line
Another bidder from China, CPC stood as L-1 for (earth) as protection against thunderbolts. When
Package 1 and SDG was picked as L-1 for Package-2 and the thunderbolts strike the metal wire, it acts as a
Package-3. While the CPC had quote 11 percent than the conductor and transmits the energy into the
upset price of quotation, the SDG quoted only 5 percent earth.
less than the upset for Packages 2 and 3. As per rules, if The transmission corporation decided to lay
tenders were awarded for the same project and for OPG in place of earth wire. In OPG, there would
similar work, the quotations should have parity and there be one metal wire and 24 layers of optical fibre
should be no disparity in prices. wires would be there surrounding the metal wire.
Since the work is similar, the SDG should also quote While the metal wire could take care of
11 percent less or even lower. However, the ruling party thunderbolts, the optical fibre wires could be
MP insisted that his company should be awarded the leased out to telecom and IT firms. At such
contract at only 5% less quotation. The officials tried to points, data transfer through OPG wires gets
convince him that it was not possible to award the interrupted temporarily and resumes later. This
contract in such an arbitrary fashion. As per the last piece network could provide dependable additional
of information on this matter, the MP continued to erect income to Transco.
his pressure on the officials and the matter was yet to be
finalised.

Rs. 220 Crore


Chief Minister Loots in Fibre Grid Contracts
Central government organisation submitted Bid for Rs. 980 Crore
It would have been L-1 if its quote was accepted
Plan to pocket Rs. 220 Crore by gifting it to a favoured contractor

The Chief Minister has planned to pocket Rs. 220 (TCIL) - while the other five were private companies.
crore by allotting the fiber grid contract to his Of the five private companies, three were cronies of
favoured companies. To this effect, the Andhra an important leader in the state government.
Pradesh State Fibernet Limited (APSFL) invited With a plan to reject the two central organizations,
tenders for laying fiber grid across 5,500 km in the tender terms were altered in favour of the cronies.
September 2018. The initial deadline of 9 months was further reduced
Among the seven companies that had submitted to 6 months. Also, the Telecom Standard Eligibility
tenders, two of them were Central government Centre's (TSEC) certificate was mysteriously added to
organisations-Indian Telecom Industries Limited (ITIL) the eligibility requirements. It was stated in the
and Telecommunications Consultancy India Limited revised terms that Rs. 5 crore Earnest Money Deposit

Emperor of Corruption 197


Lack of Accountability
APSFL indulged in unethical
practices in the process of
awarding the contract to the three
favoured companies. The e-
procurement process of tendering
requires the potential companies
to submit technical and financial
bids.
To ensure confidentiality of the
quotes until the bidding process,
generally the 'electronic
encryption' method is followed. A
'pass-phrase' is given to the
companies to protect the enclosed
documents. But, APSFL did not use
the pass-phrase method in the
fiber grid tender.

would be seized if the certificate is not submitted by contract was awarded to the favoured companies,
the time of commencement of tender. Thus, the snubbing ITIL and TCIL. The technical bids of the two
competing companies were threatened indirectly. Central organisations were rejected, therefore ousting
Interestingly, no other state that had the fiber grid them from the bidding process.
project included these terms.
Later, ITIL, in a letter, objected to APSFL's terms, Rs. 220 Crore Scandal
saying the terms were unlawful and that they did not The state government rejected the Rs. 980 crore
adhere to guidelines of the Central Vigilance bid filed by ITIL even as the crony companies filed bids
Commission. TCIL also expressed its objection to in between Rs. 1,200 crore to Rs. 1,500 crore. In the
APSFL's rules. pretext of consultations, the contract was awarded to
the three companies in three separate packages.
ITIL, TCIL Bids Rejected Hence, a sum of Rs. 220 crore was poured out in favour
Yet, thanks to the TDP leader's pressures, the of the cronies.

198 Emperor of Corruption


Rs. 1,200 Crore
The 'Powered' Heritage
Insider Information Behind the sale of Heritage Retail
Sold to Future Retail Just One Day Before Demonetisation
The 3.5% Share of Future Retail is Valued at
Rs. 1,200 Crore by April 20, 2018

When Chandrababu Naidu is out of power, his by the time of demonetization. There are plenty of
company Heritage Foods would never be in profits. clues that indicate that Babu was privy to this crucial
However, it's pace changes once he is in power. This information. On October 12, he had conducted a
is what we can understand when we carefully press meet in Velagapudi. In that meet, he boasted
examine the company history. Heritage Foods of writing to Modi requesting him to demonetize the
coming for a public issue in 1992, enjoying multiple Rs. 500 and Rs. 1,000 notes to control the black
tax benefits, the death of the cooperative dairies, money in the country. This indicates he was in the
Heritage actively filling the void left by the know of this critical information. He made the best
shutdown of cooperative dairies…all these use of this information by selling the retail arm of his
developments are directly linked to Chandrababu company- Heritage Retail- to Future Retail just one
Naidu being in power. Recently, he coming into day before of demonetization. This had resulted in a
power in 2014 has brought a lot of changes for huge rally of his share price.
Heritage.
Rs. 1,200 Crore -Value
Privy to demonetization info of Heritage Deal
Chandrababu Naidu's Telugu Desam Party (TDP) Chandrababu Naidu took a wise decision by
was a partner of National Democratic Alliance (NDA) strategically selling off the retail arm of his business

Emperor of Corruption 199


Exclusive Loans to Heritage Diary Farmers
Chandrababu 'Understanding' with banks
Ordinary farmers are committing suicides as their loans
were neither waived nor were they given any fresh loans
In AP, the farm loans are being
neither waived nor being rescheduled
thanks to the failed farm loan waiver
scheme of the CM Chandrababu Naidu.
The Chief Minister who is supposed to
rescue the farmers- who are now also
fighting the drought conditions- has
left them high and dry. Instead of
working on their problems, he is more
focused on the development of his own
company- Heritage Foods. As part of
this, he has recently entered into an
agreement with Bank of Baroda to The statement of the Bank of Baroda dated 28.12.2016, which
secure loans for the farmers of his dairy. confirmed its understanding with Heritage Foods for extending loans
On December 26, 2016, he has gone to to the company farmers.
Mumbai and negotiated with the bank
from the position of CM. It doesn't need effort to increase the milk collection of the dairy with
much effort to figure out that he could secure this deal the support of the bank loans, thus increasing the
only because of his position. Thanks to his focus, company valuation in the stock market. While the
Heritage is making great profits, while the government share value of Heritage was Rs. 200 in 2014, it has
dairy companies are being shut down one after grown to Rs. 900 within three years. This was possible
another. only because of the position that Chandrababu holds.
How should we see the efforts of a state What else could have been a scam if not Heritage's
government to improve the profits of a private dairy? swapping of its shares with Future Group at Rs. 900 per
The Babu's deal with Bank of Baroda is nothing but an share just two days before the demonetization?

to Future Retail. This was because Heritage Retail most of the companies in the retail business have
was in losses by the time it was taken over by the run into huge losses. Had the Heritage been not sold
Future Retail. It was indeed a sound business off its retail arm to Future Group on that day, the
decision. However, the timing of the decision giving already loss-making Heritage would have been
rise to quite a few questions and doubts. Both the accumulated massive losses and it would have never
parties have finalised the deal just a few hours gotten the valuation that it had had.
before the demonetization announcement. Hence, it wouldn't have had such an attractive
Here is the strangest part of the deal that takes a valuation at any time in the future. Knowing this
little explanation. What would have happened if the very well, Chandrababu Naidu has sold off his loss-
deal was not on November 8th? Post- making arm just a day ahead of demonetization.
demonetization, there was a severe dearth for cash, According to this deal, Heritage Foods received 3.5
people have witnessed sudden chaos and ran from percent partnership in Future Group and the value
pillar to post for cash. Most of them have stopped of this share was valued at Rs. 1,200 crore by April
visiting supermarkets and retail malls. As a result, 20, 2018.

200 Emperor of Corruption


Buttermilking the State Rs. 39 Crore
Taking advantage of the
blistering conditions in Andhra
Pradesh during the summer of
2016, Chandrababu executed a
sinister plan and pocketed Rs.
39 crore. He announced a
buttermilk distribution scheme
for the state to save people
from the scorching condition of
the season. For this scheme, he
has bought milk products from
exclusively from his own
company Heritage Foods
without calling for tenders or The order of Vizianagaram District Collector instructing the
giving preference to Tehsildars to buy Heritage Products.
cooperative dairies.
Chandrababu ordered the
district collectors to buy curd and buttermilk from Heritage Foods for the scheme. An order was issued
by Vizianagaram district collector ordering to procure products only from Heritage Foods. This order
had become a social media sensation and shown the extent of the abuse of power by Chandrababu.
The entire Rs. 39 crore amount spent on this scheme has gone directly into the account of Heritage.

Profits Only When in Power 794 crore. In 2012-13, the company had earned only
Rs. 9.3 crore on the sales of Rs. 1,393 crore.
Heritage Foods was started in 1992 as a small Meanwhile, the misfortune of Congress
milk powder manufacturing unit in Chittoor district, government headed by Kiran Kumar Reddy became
as Chandrababu Naidu one of its founders. Back a boon for Chandrababu Naidu and Heritage. In a
then, he was already a key political figure who had quid pro quo arrangement, Chandrababu Naidu had
served as a minister in Congress government and protected Kiran Kumar Reddy's minority government
the rising star in Telugu Desam Party. After TDP and secured business for his company in return. The
coming into power in 1994, Heritage has successfully company has earned Rs. 49 crore net profit on Rs.
executed a public issue of Rs. 10 crore. The company 1,650 crore sales in 2013-14. As Chandrababu Naidu
has also received quite a few tax incentives from the came into power in 2014-15, the company has
government. While the company profit was Rs. 6 announced Rs. 45 crore in profits.
crore in 2000, it has gone up to Rs. 17 crore by 2004-
05. However, the profits have come down once the At the Cost of Cooperative Dairies
party lost elections in 2004. In 2007, the company To make Heritage the top player, Chandrababu
profit was mere Rs. 1.7 crore and then it had fallen Naidu had ensured the shutdown the most reputed
into the red zone very quickly. In 2009, the company AP Dairy and Chittoor Dairy, which were then
has declared Rs. 35 crore net loss on the sales of Rs. leading dairy players. In the name of strengthening

Emperor of Corruption 201


Rs. 100 Crore Chandranna Kanuka

The GO that issued funds for Chandranna's Gift scheme

The ruling TDP leaders made Rs. 100 total of Rs. 430 crore on this scheme.
crore by supplying sub-standard Though the contractors have supplied
provisions to people under the yellow lentils at higher price, supplied
'Chandranna's Kanuka' scheme during inedible jaggery and wheat flour, the
Sankranti festival of 2016. The government did not take any action
government spent Rs. 270 per head and a against them!

the cooperative movement, Chandrababu had Cooperative Federation had faced severe hardships
introduced the Mutually-Aided Cooperative Act (AP since the cheque power was with Telangana
MACS) -1995 and used it to weaken the district-level government. About Rs. 30 crore dues were not paid
dairies. The activities of cooperative dairies in to the AP farmers. This has caused turmoil and the
Krishna, Guntur, Nellore Ongole and Visakhapatnam- farmers had to come onto the streets across the
most important districts for then AP Dairy state. The agitation continued for almost two
Development Cooperative Federation Ltd.- have months. Despite the intensity of the problem,
drastically come down. Soon, the ailing cooperative Chandrababu did not respond to their grievance.
dairies were overtaken by Heritage. Chandrababu
used his public office to extend undue favours to his Born to Lie
business. He compelled Tirumala Tirupati Heritage Foods was born out of a lie. While filing
Devastanams to use only Heritage dairy products the company prospectus with the Securities
and deprived the cooperative dairies a major buyer. Exchange Board of India (SEBI), Chandrababu stated
that it was his first business, however, it was a lie. He
Doesn't Care for
had established two companies named
AP Dairy Farmers' Issues Bhuvaneswari Carbides and Alloys and
Post-bifurcation, the AP Dairy Development Bhuvaneswari Carbides and Chemicals prior to

202 Emperor of Corruption


Heritage. Those companies were shut down even loans to farmers. However, he had entered into a
before commencing their operations due to special arrangement with Bank of Baroda to secure
management failure. The loans that were taken in loans to farmers who supply milk to Heritage.
the name these companies also defaulted. However, Chandrababu had talked to bankers personally and
Chandrababu omitted these important details from got this arrangement done. This was confirmed by
the prospectus and cheated his investors. Bank of Baroda Marketing Manager Rakesh Bhatia.

Heritage Binge Heritage in Panama Leaks


Here are some of the favours Chandrababu Naidu Panama Leaks had burst the global corporate
extended to his businesses by using his public racket, in which the companies transferred the
offices- money with the help of shell companies located in
● Chandrababu introduced tax deferment scheme small island nations. Heritage Foods was also named
right after becoming the CM in 1995. The in Panama Leaks. The Leaks had made the links of
Narketpally unit of Heritage was immediately Motaparti Sivarama Varaprasad, a benami of
brought under this tax benefit. Chandrababu Naidu, with shell companies public.
● Similar favours were extended to Bayyavaram Sivarama Varaprasad was appointed as an
plant in May 1996 and Kasipenta plant in March independent director of Heritage Foods right after
1997. one month from Chandrababu becoming the Chief
● Babu got permission to save Rs. 15 crore tax Minister in 2014. Chandrababu did not appoint a
benefit in 14 years. To realise this profit, he had domain expert or an industrialist as the independent
increased the tax on fresh milk from 6 % to 10 % director and chose an NRI from Ghana only as part of
in 1995 and to 12 % in 2000. his tax evasion plans.
● Even if he did not use the tax saving of Rs. 15 Kerala Bans Heritage
crore on business development and deposited it
in the bank, it could have become Rs. 152 crore Heritage is known for its compromised standards.
at 18 percent interest rate, which was then While in Andhra Pradesh, it surfaced that half-liter
prevailing interest rate. Even if the interest rate is Heritage milk pouch had only 496 ml., the Kerala
12 %, the amount would have grown into Rs. 73 officials have discovered adulteration in the Heritage
crore. milk. The Kerala government labs confirmed that
Heritage milk contained Formalin or Formaldehyde,
Heritage First, Farmers Last which is a cancer-causing chemical preservative. This
Though Chandrababu came to power in 2014 chemical was found in the milk that was being
due to his promise of farm loan waiver, he hardly supplied from Heritage Foods plant in Dindigul
stood by his word. He did not care though the given district of Tamil Nadu. Upon the finding, the Kerala
loan waiver amount was not even sufficient to pay Food Safety Commissioner has banned the Heritage
the interest and banks started refusing to issue fresh milk products.

Emperor of Corruption 203


Rs. 800 Crore
Feeding on the Poor
Rs. 800 Crore Graft in Four Years
Chandrababu Naidu government distributes gifts to supplied the jaggery which was more of in liquid form
the poor families on the festive occasions such as than its actual solid form. As to quantity, instead of 500-
Sankranti, Christmas and Ramjan under Chandranna gram, only 455-gram jaggery was supplied. One kilogram
Kanuka scheme, the scheme which named after the CM wheat flour actually had only 950 grams. Thus, the quality
himself. Under this scheme, about 1.44 crore BPL families and quality of almost all the provisions were
get a pack of kirana provisions such as jaggery, red gram, compromised so that the TDP leaders could make large
Bengal gram, wheat flour, palm oil and a little amount of sums of money. Despite several complaints about the
ghee. corruption in the scheme, the government did not
The idea of this scheme is to supply provisions to the initiate any action against the contractors.
poor families during the festive occasions so that they
can celebrate it happily. However, the stated objective of No Safety Certifications
the scheme was only a frontage for a well-though-out On every packet of a food item, the companies that
scam. The Chief Minister has not only christened this follow the food safety standards must publish the details
scheme after himself (Chandranna Kanuka or of components of the food in question, details of
Chandranna's Gift), he also made it an important source manufacturers, the date of packaging and the expiry
of revenue for his party leaders. The contracts to supply date, among others. A packet must also have the
these provisions have obviously gone to Telugu Desam company details, phone numbers and other means of
Party (TDP) leaders. They are making huge money out of contact. The suppliers or manufacturers who don't
these contract by supplying sub-standard food items to comply with these rules can be fined up to Rs. 10 lakh
the people. The TDP government had spent Rs. 1,600 according to the Food Safety Standards Authority of
crore in the last four years, Rs. 400 crore every year. Out of India. However, some of the supplies that are being
this amount, half of it had gone into the pockets of the distributed under Chandranna Kanuka scheme do not
ruling party contractors. have any of such details. Indeed, this scheme has become
To make money out of the food supplies, the party an irony; the government wants the poor to celebrate
leaders have been supplying substandard products; at their festival with poor quality provisions.
lesser quantities than the declared quantities. They

204 Emperor of Corruption


PDS Handed Over to Future & Reliance Groups
Ration Shops Handed Over to Future and Reliance Groups
To Be Turned into Village Malls
TDP government has practically
palmed off the public distribution
system to corporate entities. This
exercise began with the
government decreasing the number
of items that are to be supplied by
ration shops at a subsidized cost.
Now, it proposes to turn the entire
system over to private hands,
particularly to Future group.
Incidentally, Future group bought
Heritage Retail of Heritage group,
owned by Chandrababu family,
recently. Moreover, Future made the
purchase at a much higher price
than its market value. Heritage
shares which were worth Rs. 200 at
the time were bought at Rs. 900. In
return, now the family members of
Chandrababu hold 3% stake in
Future Group. It is also worth noting
that, exactly a day after Future
bought the stocks of Heritage,
Central government announced the
demonetisation.
The government proposes to set
up 'Anna Village Malls' in phases that
will be replacing the 29,000 fair-
price distribution shops across the
state. Future and Reliance groups
have gotten into a partnership to set
up the village malls. These malls
shall come up in over 200 sq ft land
and 25% of the establishment cost
would be borne by the government. price of Rs. 185. As soon as TDP came to power, it
It would also extend a 'stamp' loan of 25% to the dealer. scrapped this system. Only the rice was left on the list. It
is clear that with fair-price public distribution system
Removal of One Item After Another passing into the hands of corporate entities in the name
Ration shops used to distribute rice, kerosene, palm of village malls, the public will find themselves at the
oil, dal, wheat flour, salt, wheat, sugar, tamarind, mercy of these companies when it comes to buying
turmeric and chilli powder. Dealers would pack 9 items items which used to be a part of the ration shop supply
in sachets for the consumer and sell it at a subsidized chain.

Emperor of Corruption 205


Rs. 735 Crore... Gone With Krishna
Pushkarams Splurge 50% - TDP Leaders' Share
Rs. 1,472 Crore Rs. 735 Crore

The GO No: 565


which has
allocated the
works worth Rs.
52.76 crore to
Surya
constructions on
nomination
basis.

Chandrababu government had splurged Rs. 1,472 1,472.39 crore, the state government used Rs. 1,186.83
crore on Krishna pushkarams, which has happened in crore on roads and other construction-related activity.
2016. However, no trace of this expenditure can be This amount was spent this amount on 135 villages
found in the villages on Krishna river banks where the in Guntur, Krishna and Kurnool districts and Vijayawada
money was spent. The TDP leaders who bagged the city. That means each village has got Rs. 11 crore on an
contracts on nomination basis did meagre works and average. Despite such heavy investment, no post-
claimed the bills. Some contractors have just poured the Pushkaram development can be seen these villages and
gravel on already laid roads and claimed the bills. Some they are still suffering from the same old infrastructural
other contractors have just claimed the bills without problems.
even pretending of doing some work. A few others got a
little more advanced, built roads for private real estate Paths of Plunder
ventures and claimed the bills. The Pushkaram works Though Chandrababu Naidu was aware of the
have continued for many days even after the 12-day important dates of Krishna Pushkarams a full year ahead,
event. The ruling party had betrayed the faith of he intentionally ignored the preparations for the festival.
devotees to amass fortunes. He ignored the preparation works without taking any
Generous Allocations, lessons from Godavari Pushkarams of 2015, in which
more than 30 people died due to a stampede.
Disappeared Funds As the festival neared, he pretended a sudden
Though AP is a deficit state, the government has emergency and gifted away all the works to his party
allocated Rs. 1349.37 crore funds for Krishna local leader on nomination basis; with the pretext of lack
Pushkarams. It also has spent another Rs.123.02 crore of time for the competitive bidding process. As there
from the Common Good Fund, which is meant for was not much time left, the TDP leaders have completed
maintenance of temples. From the total amount of Rs. some of the works in a hasty manner.

206 Emperor of Corruption


Ubiquitous Corruption mega festival. The government has called for a food
contract worth Rs. 3.78 crore. This contract was
The state government had spent Rs. 200 crore on
awarded to the TDP leader and Vijayawada deputy
the lodging facilities of the yatris and the volunteers
mayor GogulaVenkataramana Rao and seven other TDP
who served during the festival. However, none of those
corporators. According to the tender rules, the workers
arrangements have proper accounts. For instance, Rs.
shall be offered one breakfast and two meals. However,
4.85 crore were spent on sanitation needs and Rs. 45
the poor quality of the food had put off the workers
lakh for planters. However, these expenditures were
and compelled them to depend on food supplies from
never accounted for. The government claimed that it
voluntary organizations. Besides this, the sanitation
had done greenery works at the cost of Rs. 3 crore.
workers who were supposed to be paid Rs. 400 a day
However, Rs. 45 lakh of this amount couldn't be
were paid the amount between Rs. 250 to 300; thanks
claimed by any contractor! These incidents clearly
to the rapacious attitude of TDP leaders. The ruling
indicate the extreme corruption levels in Pushkaram
party leader who won the contract had shown 22,000
works.
workers on record and pocketed a hefty sum. Thus, the
In another incident, the TDP leaders have made
Krishna Pushkarams have presented a great occasion to
money by denying quality food to the sanitation
plunder the public funds.
workers, whose toil had ensured the success of the

Department District (Cost in Rs. Crore) Total


Krishna Guntur Kurnool
Works Cost Works Cost Works Cost Works Cost
Water Resources 90 142 91 167.01 7 24.99 188 334
R&B 29 108.70 83 170.37 20 39.10 132 318.17
Panchayati Raj 229 79.36 100 66.76 50 70.30 379 216.42
Municipal 270 200.75 144 62.66 77 18 491 281.41
Poor quality works in Padmavathi Ghat Total 618 530.81 418 466.08 154 152.39 1190 1150

Pushkaram Funds Gone Godavari Way!


The total funds allocated for Godavari Pushkarams is The amount that recycled in the form of kickbacks is
Rs. 1,500 Crore Rs. 750 Crore
The Andhra Pradesh government has spent standards to be complied with. The works
Rs. 1,500 crore on the works of Godavari below Rs. 10 lakh were given to the ruling party
Pushkarams, which were celebrated in July leaders on nomination basis. The R&B
2015. However, half of this amount- i.e. Rs. 750 Department has issued an order to this effect,
crore- was pocketed by the ruling party leaders. thus setting aside the transparent tender
Out of the total amount of Rs. 1,500 crore, the bidding process. BJP MLC Somu Veerraju
Roads and Buildings Department was allocated complained to the Vigilance Department that
Rs. 782 crore, the remaining funds were out of Rs. 782 crore of the allocated fund, Rs.
obligated to other departments. During the 400 crore was snatched away due to the
execution of the works, there were no rules or ubiquitous corruption in the works.

Emperor of Corruption 207


Rs. 675 Crore Scam
Corruption Lines in APTransco
Scam in Replacement of Old Power Transmission Lines
Cost-Effective Firms Got Rejected
Rs. 1.35 Crore Excessive Payment for 90 km work
Rs. 675 Crore Excessive Payment for 45,000 km work

The AP Transmission Corporation (APTransco) gifted


the contract for replacing power transmission lines
worth thousands of crores of rupees to two private
organisations; that too at excessive rates. To facilitate
this clandestine transaction, Transco has altered the
terms of tendering and offered Rs. 1.35 crore per 90 km
line. Going by this rate, the overkill of the 45,000 km
contract would be Rs. 675 crore.

90 KM in First Phase
Across Andhra Pradesh, Transco has 1,32,220 KW-
powered transmission lines, running into about 45,000
km. Most of these lines are damaged and in worn out
condition. Frequent power losses have become a
commonplace due to the deteriorated condition of
these lines. In 2014, the Transco has decided to replace
the existing lines with new ones.
It has enlisted this work in the centre's 'Power for all'
scheme with the objective secure funds from financial
institutions with the central government guarantee. The
Transco has forwarded a draft proposal to the centre in
2016. However, the centre refused to be the guarantor
for the Transco loans. Hence, this proposal was set on the
back burner for some time. The proposal was raised The new rules sought tenders from only those
again in May 2018 with a view to call for tenders in the companies which manufactured the transmission lines
first stage for 15 lines with a total length of 90 km. and recognised by the government. As a result, the low-
cost tenders were rejected from the bidding process.
Tender Rules Altered in Hence, only two companies were made eligible for the
contract, as planned earlier.
Favour of Private Companies Since there was hardly any competition, the two
The Transco officials convened the pre-bid meeting companies have formed a ring and quoted Rs. 6 lakh per
in June to discuss the issues related to first stage works. one km. The contracts were awarded to these
Some companies came forward with the proposals to companies; thanks to the efforts of a Transco official. The
change the lines for Rs 4.5 lakh per one km. Officials had two companies thus have gained Rs. 675 crore for the
then ensured that those companies disqualified for pre- subsequent 45,000-kilometre project at the rate of an
bid by changing the tender rules. additional Rs. 1.35 crore per 90-kilometre line.

208 Emperor of Corruption


Rs. 670 Crore
Thermal Projects of Favoritism
The Additional Payments Made by APGenco in the Two Thermal Projects Rs. 2,680 Crore
The Kickbacks Rs. 670 Crore

The NTPC qualifying requirements which said completionof one thermal


project was sufficient to participate in its tender process.

The APGenco requirements that set the completion of at least two projects as eligibility
criterion to favour BGR group

The AP government has proposed to set up two and Gujarat, cost per MW was ranging between Rs. 4.4
800 MW thermal power plants in the state, one at crore and Rs. 4.76 crore; that too the AP plants have
Krishnapatnam (of Nellore district) and the second one same specifications those of Telangana and Gujarat.
at Ibrahimpatnam (of Krishna district). The chief To award contracts to these companies, APGenco
minister has inflated the estimated costs of both the has come up with a stifling criterion- which was way
plants and had them awarded to Tata Projects and BGR too rigid than that of the NTPC- to kill the competition.
company. While Tata Projects won the contract of Despite its miserable financial condition, the APGenco
Krishnapatnam TPP to Tata Projects Ltd. at the price of has agreed to pay Rs. 2,680 crore extra to the
Rs. 6.3 crore/MW, the BGR company bagged the contractors. As this transaction was made public by
contract of Ibrahimpatnam TPP to BGR company at Rs. Sakshi daily and a PIL was filed in the High Court, the
5.85 crore/MW. contract process was halted. But, what was ironic was
These quotations were on quite higher side by any that very taking place of such scandalous process.
standards of the industry. In other states like Telangana

Emperor of Corruption 209


Rs. 380 Crore Scam
Changing of High-Tension Electric Lines
In the past, even for a small contract
to be awarded, many things were
taken into consideration. The style
of functioning and experience would
be factored into decision making,
and experience would actually play
a key role in the decision-making
process. This would show that the
government would be cautious
while awarding the contracts worth
hundreds of crores of rupees.

In this case, however, the Chandrababu Naidu leader's contracts are supervised by this official.
government gave a contract worth Rs. 380 crore to a An important official of Transco, who was very close
firm without any experience. The complexity of task i.e. to this TDP leader, backed him in his efforts. He made
changing the high-tension electric lines did not deter sure that other firms which were competing in the
the government from gifting away a high-value tender process withdrew their bids.
contract. The entire episode was run with the help of a Finally, four firms based out of Hyderabad and
proxy firm from Kolkata. Some of the top Transco Mumbai were left in the fray. At this critical point, the
officials ensured that there were no competitors while Transco official got into the act to make sure that these
awarding this job. four firms were disqualified on technical grounds.
Interestingly, after the approval of the technical
Two Lanes of Electric Lines of 15 KM bids, these four companies were disqualified during the
Transco had to relocate the 400 KV lines in the announcement of price bids. They were disqualified on
capital city area to the outer limits of the city due to the flimsy grounds such as failure to upload soft copy
constructions that are coming up at different places. along with tender and not disclosing details of disputes
Transco decided to shift these lines to riverbank related to earlier contracts. They did not budge even
villages (lanka villages) in the area near Ibrahimpatnam. when the four companies offered to explain these
Two lanes of fresh lines were approved by Transco and points. As a result, the TDP leader's proxy firm Kolkata
CRDA for the length of 15 kilometres and the tenders managed to bag the contract.
were called for tenders worth Rs. 380 crore.
Contract to Inexperienced Company
4 Firms Disqualified on Technical
In order to relocate these high-tension lines, towers
Grounds over 100 meters height had to be built on the riverbank
A TDP leader from Vijayawada set his sights on this lands of Krishna river. These towers would require
contract and submitted a tender in the name of a foundations of 500 cubic metres-depth. The Kolkata
Kolkata firm. A key official in this firm had previously firm has no experience in implementing such critical
worked in the APSPDCL in a senior position. The TDP projects. It would be an experiment for them.

210 Emperor of Corruption


Rs. 301 Crore
SDF Funds GO Straight to TDP Leaders!

GOs show TDP leaders as MLAs in the constituencies


won by YSRCP and funds released in their names
TDP leaders in 67 constituencies got Rs. 603 Crore in 3 years
TDP leaders appropriated 50% of it; Rs. 301.50 Crore

In an unprecedented act, the AP


government's GO, dated March
31, 2017, stated that the
government had issued a Rs. 2
crore grant for the development
of roads in Santanutalpadu
constituency following a request
from 'the constituency MLA B.N.
Vijaya Kumar'. Mr. Kumar is in
reality, a TDP leader while the
serving MLA of the constituency
is Adimulam Suresh from the
YSRCP .

In an unprecedented manner, the AP government's opposition MLAs but has also started calling his party
G.O, dated March 31, 2017, stated that- the government MLA contestants who lost the previous elections as
had issued an Rs. 2 crore grant for the development of MLAs.
roads in Santanutalpadu constituency following a To this effect, he issued G.Os showing the TDP
request from 'the constituency MLA B.N. Vijaya Kumar'. contestants as MLAs and directly gave them the
However, Mr. Vijaya Kumar is indeed a TDP leader and development grants. Chandrababu has issued Rs. 603
the MLA of this constituency is Adimulam Suresh from crore development grants to 67 constituency leaders in
the YSRCP. the last three years. About 50% of this amount i.e. Rs.
Chief Minister Chandrababu Naidu's blatant 301.50 crore has ended up in the pockets of these so-
disrespect for the opposition MLAs and disregard for the called TDP leaders cum MLAs.
established political conventions comes as a rude shock
to any concerned citizen. Setting a questionable B.N. Vijaya Kumar: No MLA!
precedent and hitting a new low in politics, the CM has While Adimulam Suresh is the elected lawmaker
not only refused to recognize the existence of from Santanutalapadu constituency of Prakasam

Emperor of Corruption 211


district, Chandrababu government has changed his Chandrababu Naidu continued this SDF in principle,
status with a GO. In the GO dated March 31, 2017, the as it gives him complete powers as to the funds'
government said it was granting Rs.2 crore special allocation. However, he abused this power and stopped
development on the request of 'MLA' B.N. Vijaya Kumar! granting funds to the opposition MLAs. In the last four
Such clear rejection of opposition MLAs was never and half years, he did not grant single rupee of
the case in Andhra Pradesh politics. All the chief development funds to the opposition MLAs. Instead, he
ministers have maintained a respectable relationship has been granting funds to his party leaders directly
with the opposition members. When late Y.S. through government orders. In one of the most ironic
Rajasekhara Reddy was the Chief Minister, he had issued developments in Indian politics, the GOs term the ruling
Rs. 2 crore as constituency development fund every year party leaders as MLAs in place of the elected MLAs!
to all the MLAs irrespective of their party affiliation. Chandrababu, true to his character, has turned SDF
Later, N. Kiran Kumar Reddy established a fund called into his party welfare fund. He issued 31 GOs on March
the Special Development Fund and generously 31, 2017, releasing an Rs. 2 crore grant each to 31
distributed the funds to all the MLAs so that his constituencies; totaling Rs. 62 crore. He issued these GOs
government wouldn't be taken down. in desperate haste on the last day of the financial year.

While the Srisailam MLA is Budda Rajasekhar Reddy of YSRCP, the GO has issued Rs. 2
crore to Shilpa Chakrapani Reddy, terming him as the MLA.

The GO has granted Rs. 2 crore to Tuni constituency TDP in-charge YanamalaKrishnudu,
while the MLA of Tuni constituency is Dadisetti Raja of YSRCP

Dhone constituency of Kurnool district elected B. Rajendranath Reddy of


YSRCP as MLA. However, the funds were released in the name of K. E. Pratap,
brother of Deputy Chief Minister K. E. Krishnamurthy.

How can the Chief Minister allocate funds based on his whims and
fancies? In such a case, how we can think we are living in a democracy?

212 Emperor of Corruption


Rs. 270 Crore
The CCTVs Scam
Estimated Cost Rs. 690 Crore
Matrix-NCC Tender Quotation Rs. 960 Crore
CM's Cut Rs. 270 Crore

The AP State Fibernet Ltd. (APSFL) had invited


tenders to install CCTV surveillance networks in key
locations of the state. The estimated project value (EPV)
was pegged at Rs. 690 crore. Administrative approval was A part of GO No: 8, issued on April 3, 2017, to grant
also given for the project and two companies Vantage- administrative approvals for CCTV surveillance
RVR and Matrix-NCC had competed for the contract. The system with an estimated cost Rs. 690 crore.
technical evaluation committee chaired by APSFL
Executive Director Atluri Rama Rao rejected the Vantage-
RVR bid citing the lack of technical eligibility to 960 crore. While the estimated cost of the project was Rs.
undertake the project. 690 crore, the committee gave the contract to the L-2
But, in fact, the Vantage-RVR has 27 years experience bidder who quoted Rs. 270 crore excess, i.e. Rs. 960 crore.
in this field not to mention the fact that it had quoted a Where the extra Rs. 270 crore is likely to end up is not a
lower price. While the Vantage-RVR quoted Rs. 784 crore, difficult thing to guess!
the Matrix-NCC quoted a staggering Rs. 980 crore. The The interesting part of the deal was- without even
Vantage-RVR was the clear L-1. However, the state obtaining the consent of the Tender Approval Comm-
government deliberately sidelined the qualified bidder ittee, the Technical Evaluation Committee awarded the
so that the contract could be gifted to Matrix-NCC. contract to Matrix-NCC. The officials who were connected
Since the -1 was disqualified on technical terms, the to this tender made it clear that the entire episode was
APSFL started price negotiation with Matrix-NCC. The orchestrated by the Chief Minister himself. It doesn't
company finally agreed to give a discount of only Rs. 20 come as a surprise that this corrupt decision was
crore, which means that the tender was finalized for Rs. approved by the AP cabinet in June 2017.

Emperor of Corruption 213


Rs. 155 Crore
Solar Golmaal!!
The prospective loss that will have to be borne by APGenco,
as it had to allow the highest bidding, is Rs. 755 Crore.
The money that changed hands in this transaction was Rs. 155 Crore
The APGenco has favoured a
few private companies in
awarding the tenders for solar
power projects, which are to be
established in Anantapur
district. The details are as
follows.
The APGenco has called for
Engineering, Procurement &
Construction (EPC) tenders for
its 500-MW solar power project
that is going to come up in The new regulations created by the Andhra Pradesh
Talaricheruvu village near Power Generation Corporation Ltd. (APGenco)
Tadiparti town of Anantapur to select the 'choicest' companies.
district. The private companies
have used the BHEL officials and rigged the five companies got the eligibility for the tender
contract price. The BHEL which quoted Rs. 6.26 process of APGenco.
crore for Mega Watt was selected as L-1 This was because the important conditions
through reverse bidding method. However, of the tender were tailor-made to suit the
strangely, the government gave this project to interests of certain favoured companies. The
other companies such as Sterling, Tata, L&T and APGenco proposes to pay Rs. 1.51 crore extra
MEIL for the same price. for each MW of power, which means the
The problem is the price quoted by the company would be burdened by Rs. 755 crore.
BHEL itself was an inflated price. The NTPC When the scandal was reported by Sakshi daily
which was establishing a similar thermal power and a few PILs were filed in the Hyderabad
plant in the same district has finalised the per High Court, the AP government stopped the
MW price at Rs. 4.91 crore. approval process. It was clear the tender
Even the eligibility criteria of the companies process was initiated to kick-start a scam but it
were an issue. While 17 companies could finally got stopped due to the media coverage
participate in the tender bidding of NTPC, only and court intervention.

214 Emperor of Corruption


Rs. 152 Crore
Land Levelling Scam
Cost of 599 Acres Land Rs. 62.93 Crore.. APIIC Estimated Cost Rs. 177.94 Crore
Actual Cost of Levelling Rs. 25 Crore.. Quantum of Scam Rs. 152 Crore

The AP government has bought an acre land for Rs.


10 lakh and spent twice as much to level the land, which
incidentally was already flat. While the actual price of the
land was Rs. 10.50 lakh per acre, the government has
spent Rs. 29.71 lakh on each acre on the pretext of
levelling. This is the episode of brazen loot and daylight
robbery by Chandrababu Naidu, who is ripping off the
government and pocketing public money through the
AP Industrial Infrastructure Corporation (APIIC). Here is
the full story.
The state government has entered into an MoU with
the Korean automobile maker Kia Motors to start a
manufacturing plant in Penukondamandal of Anantapur
The lands that were acquired for Kia motors at
district. The APIIC has pooled 599.35 acres of land for this
erramanchi and ammavarupalli villages.
project at Erramanchi, Ammavarupallu, Duddebanda
The government has levelled the lands that
and Venkatagiripalem villages. The farmers whose lands
were already flat .
were acquired for the plant were given an Rs. 10.50 lakh
per acre compensation. Thus, the state government has 780 crore for at least one year in the last five years.
spent Rs. 62.93 crore on the land acquisition. Meeting this narrowed down requirement, only L&T and
NCC got qualified in the technical bidding.
Here's the Catch... These moves came as a huge shock to the farmers.
The APIIC had invited tenders on April 25, 2017, to They naturally felt betrayed as the government bought
level the land so that it could hand over a clean plot to their lands at the cost of mere Rs. 62.93 crore and spent
Kia Motors. The cost of the work was decided at a Rs.177.94 crore-more than double- on levelling it.
whopping Rs. 177.94 crore. Most of the contractors were
of the opinion that the proposed levelling work would TDP Bigwigs' Lands Exempted
cost not more Rs. 25 crore since the lands have been The government which took the farmers' lands
under cultivation for a very long time. This effectively ruthlessly has exempted the lands of the bigwigs of the
means about Rs. 152 crore was pocketed by the chief ruling party from the pooling. TDP MLA
minister. PalleRaghunatha Reddy, who had the insider
It was rumoured that this contract was conceived information about the plant, has bought 378 acres
and rolled out only to benefit Nara Lokesh, the son of located between survey numbers 408 and 445. The Civil
chief minister, and pacify PalleRaghunathaReddy, Supplies Minister Paritala Sunitha's lands were also
Puttaparthi MLA, after dropping him from the cabinet. spared. She has 138 acres in this area. The TDP
For this contract, several companies submitted the lawmakers had bought these lands only upon
bids by May 10, 2017. However, most of them had to confirming that they would not be taken under land
withdraw their bids due to the APIIC's condition that the pooling. Their privy to insider information helped them
contracting company must have had the turnover of Rs. take an 'accurate' investment decision.

Emperor of Corruption 215


No Need for Levelling Government's Dubious Intentions
There are no mounds or bushes nor is there any There is no need to spend additional money on
uneven terrain in the 599.35-acres of land acquired levelling the lands of Erramachi and Ammavarupalli
for Kia Motors. There is no need to level the land as villages. Spending hundreds of crores of public
we have been cultivating the lands for years. Farmers money on land levelling is atrocious. The government
themselves did the levelling work long ago. must be spending such a huge sum only to pocket a
- Venkat Reddy, Farmer, good portion of it.
Ammavarupallu, Penugonda Mandal. - Boya Ramachandra, Ammavarupalli.

Rs. 367 Crore


Nomination, it Works!
Funds Meant for Development of 225 Tanks in 11 Districts Swindled
TDP leaders set their sights on developing tanks thinking that since the World Bank is the funder, they can
using World Bank funds and they are planning to get their bills reimbursed at the earliest.
distribue tenders amongst themselves on nomination
basis. The ruling party leaders who earlier had lined their Political Pressure on Officials
pockets under Neeru-Chettu Programme and employm-
ent guarantee scheme are now taking up the TDP leaders from Kurnool, Prakasam and other
development of 225 tanks in 11 districts at the cost of Rs. districts started exerting pressure on officials and in one
367.72 crore. instance, a minister from Kurnool called up an official and
According to the rules set by the World Bank, told him to scrap the tenders; threatening and
contractors are supposed to be selected only on the basis questioning how the official could the tender notice
of box tenders and not e-tenders. TDP MLAs and party came out in the first place.
leaders got ready to hand over the works through box Despite the official trying to explain to the minister
tender system without giving other contractors the that he had no say in the issue, the minister issued a
tender schedule. But when they were told by officials diktat seeking his transfer from the district. Pressure is
concerned that it was not possible, they changed tack. being exerted in YSR Kadapa and Anantapur districts also
They started pressurising the bureaucrats to award to hand over the works of development of tanks. In this
works on nomination basis. It is learnt that Chief Minister context, the time for submission of tenders has also been
also has given his nod. The ruling party contractors are extended.

216 Emperor of Corruption


Rs. 100 Crore
Pocketed in the Name of Jnanabheri Conferences
Rs. 130 Crore Allocated at the Rate of Rs. 10 Crore per District
Expenditure Rs. 30 Crore, Remaining Amount Siphoned Off
Chandrababu Naidu has gulped down about Rs. 100 conference (including events, food, transportation of
crore in the name of conducting Jnanabheri students etc.) wouldn't cross Rs. 2 crore, the government
Conferences in universities. He has allocated a total of has claimed Rs. 10 crore. Educationalists believe costs
Rs. 130 crore to conduct the conferences. However, the were exaggerated with the sole aim of looting the public
experts and opposition parties of the opinion that the money. All the cash prizes put together wouldn't cross
cost won't cross Rs. 30 crore even if Rs. 2 crore was spent Rs. 17.5 lakh as most of the students are offered only
on each district. This effectively means Chandrababu participation certificates. Considering these facts,
Naidu is pocketing Rs. 100 crore in the name conducting allocating a total of Rs. 10 crore for each district and a
student festivals. Here are the details. Initially, the state total of Rs. 130 crore on such student festivals was
HRD ministry has issued orders stating that the cost of nothing but a daylight robbery by the state
each Jnanabheri conference would be Rs. 1 crore and government.
the AP State Council for Higher Education (APSCHE) and
the university concerned should split the expenditure. It Not a Paise for Amenities
further instructed that each university should mobilise Students and teachers in universities and colleges
12,000 students to these conferences and conduct the are facing a lot of difficulties due to lack of basic
competition such as essay writing, elocution, among amenities. Though the Chandrababu Naidu government
others. The first three winners would be given cash had issued a GO in 2017 for the release of Rs. 380 crore,
prizes of Rs. 1 lakh, Rs. 50,000 and Rs. 25.000, not a paisa has been so far. Though proposals were
respectively. The APSCHE and the universities were submitted once again in 2018, the budget was not
asked to foot the bill of these conferences. By then, allocated. On the one hand, the government denies
Jnanabheri conferences were already conducted at basic facilities to universities citing the paucity of funds
Andhra University in Visakhapatnam and Sri and on the other, it spends hundreds of crores of rupees
Venkateswara University in Tirupati. on publicity campaigns embarked upon by the Chief
The universities were asked to bear this cost from Minister. This decision of the government has come in
their meagre resources. The state government- while for severe criticism from all quarters. It is said these
denying funds for basic facilities of the universities- conferences are being held before the election with the
directed them to dip into student fee funds and spend sole objective to deceive gullible students. There were
the money on these propaganda conferences. This widespread resentment and unrest among the student
decision of the AP chief minister to divert student funds community across the state over the delay in the release
for his own publicity came in for severe criticism from of job notification as also the non-disbursal of
educationists. unemployment allowance of Rs. 2,000 per month as
Rs. 10 Crore Per District: The TDP government promised.
which had initially said that the expenditure for each Students are also furious with Chandrababu Naidu
Jnanabhericonference would be Rs. 1 crore later hiked it for having settled for the special package instead of
tenfold to Rs. 10 crore. There are allegations that the special category status (SCS) to the state. Further, they
tenfold increase which was announced by the Chief are indignant that the state government arrested
Minister and HRD Minister Ganta Srinivasa Rao was students protesting for SCS and foisted cases on them
nothing but a ploy to loot Rs. 100 crore. for fighting for the cause of SCS. The narcissist
This decision of the government has attracted the tendencies of Chandrababu Naidu have offended by the
widespread criticism. While the total costs of a ordinary people and educationalists alike.

Emperor of Corruption 217


Rs. 120 Crore
Gross Mismanagement of Medical Devices
So far, we have seen irregularities and corruption in in some of the hospitals, TBS is collecting a fee for them.
government procurement and contracts. To purchase About 30% of the recorded equipment is covered
thermometers which are worth Rs. 150 for Rs. 1,200 and under warranty. Yet, TBS has been collecting
stethoscopes which are worth Rs. 1,000 for Rs. 4,000 is maintenance fee for the equipment covered under
your regular corruption. However, when it comes to warranty. Interestingly, TBS kept on increasing the
corruption there seems to be a lot of space for TDP to valuations of the equipment year after year. The
get creative. And creative they did get! This time, they equipment's value was projected as Rs. 227 crore in
have outdone themselves, and for the first time ever TDP December 2015, Rs. 409 crore in March 2016 and Rs. 508
has introduced this concept called Annual Maintenance crore in February 2017. In October 2017, the valuation
of medical devices in government hospitals. was increased to Rs. 478 crore. In reality, the equipment's
In the name of annual maintenance, private value would be no more than Rs. 250 crore.
organizations are being given contracts worth crores The company quoted the value of the glucometer
of rupees. The private companies are now in Prakasam district's RIMS as Rs. 5 lakh. As a
paid a percentage of the instrument's result, the government had to pay annual
price for annual maintenance. In this maintenance charge of Rs. 40,500 at
way, transactions worth hundreds the rate of 8.1%. However, the
of crores of rupees are being actual cost of the device would
taken place with the support of not exceed Rs. 1,000 and the
the Chief Minister. The maintenance cost would be
company, officials and the mere Rs. 81. The MRI scanner in
Chief Minister...all of them Kurnool General Hospital has
have an active role in this been procured in PPP mode.
scam. Hence, it was not supposed to
Even though some of the be covered under the annual
instruments have the warranty, maintenance by TBS. But, since
the maintenance charges are still the contract was in place, the
being collected. In some other government had to pay Rs. 40 lakh
cases, the instruments are shown as to the company.
unavailable even if they are in stock. It TBS put the value of a scan maker in
can be understood from the fact that Rs. government hospital of Khambham,
120 crore have been subverted in three years Prakasam district as Rs. 2.48 crore, but, the
under the Annual Maintenance scheme. actual price the device was just Rs. 2 lakh. When
TBS, the organization that oversees the annual calculated as per the actual price, the annual
maintenance across all hospitals in Andhra Pradesh, maintenance was to be Rs. 16,000. But, the government
stated that Rs. 480 crore worth equipment (50,613 paid Rs. 20 lakh towards maintenance. The CT scan
machines and instruments) were functional. In 2015, the machine in Visakhapatnam's King George Hospital is
government struck a deal with TBS, at the rate of 8.1% covered under warranty and was purchased for Rs. 1
commission per repair of one piece of equipment. The crore. But, TBS quoted its value as Rs. 2 crore. TBS
government authorities had never reviewed as to what collected Rs. 16 lakh towards maintenance for a device
was the real price of the equipment and to what extent that was covered under warranty.
TBS's estimates were accurate.
TBS has been collecting annual maintenance from Probably, this is the most innovative scams of the
the government against the extravagant price TDP government, which is quite dangerous for the
estimations. Although certain equipment is unavailable people of Andhra Pradesh!

218 Emperor of Corruption


Rs. 103 Crore
Theft in the Name of Rain Guns
Do you ever buy an item for Rs. 10 and spend
Rs. 9 on its repairs? You may never do that,
but Chandrababu Naidu exactly did that. The
government has bought the rain guns for Rs.
163 crore and spent Rs. 103 crore on their
repairs and maintenance!!
A rain gun is an agricultural equipment that
discharges water to a certain distance. For
instance, a six feet rain gun can throw water
up to 45-meter radius. It works on a 5HP
engine and needs constant water supply
from a water source such as a well, a canal or
a tube well. If there is no water source The order issued by the Disaster Management Department,
available, water has to be fetched through dated February 14, 2016, issuing Rs. 103 crore for maintenance
tankers. of rain guns.

By August 28, 2016, 309 mandals of AP were issued on February 13, 2017. However, by then,
declared drought-hit. At this juncture, the state nobody knew where all the rain guns exactly were.
government loftily declared that it was going to save While some rain guns were with farmers, others
crops in 10 lakh acres in these mandals with the help were in warehouses and the offices of the
of rain guns. It bought about 13,650 rain guns and Agriculture Department.
rented them out to farmers. It has also sold the rain
guns to the interested farmers. The government Were 4 Lakh Acres Saved?
estimated that it would cost Rs. 3,000 to water an
CM Chandrababu has claimed that his
acre crop and gave 50% subsidy too.
government had successfully fought the drought
However, since there was no genuine interest to
and saved the groundnut crop in 4 lakh acres in
save the crops and the focus of the scheme was only
Anantapur district. The I&PR minister inflated this
making money at the cost of the farmers, the state
figure to 7 lakh acres. They spouted these fake
government has failed to save the crops in a single
figures without thinking about the amount of water
acre even after spending Rs. 163 crore on rain guns.
required and the number of tankers needed to save
Despite this failure, the government has released
crops in 4 lakh acres or seven lakh acres.
another Rs. 103 crore for the 'maintenance' of those
It takes four spells of 25 ml rainfall to sufficiently
rain guns, which reconfirms that the fact that the
water one-acre groundnut crop. Since there was no
whole scheme was nothing but a well-planned
rain between July 15 and August 28, the groundnut
scam.
crop got affected. The rain guns could provide from
Once the AP government took this decision, the
5 to 6 ml rainwater at best. Though the state
Finance Department released Rs. 103 crore to the AP
government couldn't save the crop in a single acre, it
Revenue Disaster Management and orders were

Emperor of Corruption 219


had claimed in the GO that it was releasing an If we go by the CM's claim, he must have used 20
additional Rs. 103 crore for the maintenance of the lakh tankers to fetch water for the rain guns. Is it
rain guns which had "saved the crops in 10 lakh possible to hire those many tankers in the state? The
acres"! implementation period of this scheme was 10 days.
How could the government get 20 lakh tankers in 10
Neither Water Nor Tractors
days? The CM also needs 250 crore liters of water to
An acre crop needs 25 ml rainfall to have save the crop in 4 lakh acres. Where did the
sufficient growth. The state government has claimed government find that amount of water in the
that it gave 5 ml of rainwater through rain guns. drought-hit state?
Even if we assume that the government provided That means there was neither water nor water
the stated 5ml water for an acre, it was no way tankers; there were only the statements making
sufficient and needs 25,000 liters of water for an acre government and its unused rain guns! The TDP
to save the crop. Assuming that the government had leaders who got the kickbacks by spending Rs. 163
supplied 5,000 liters with each tank, it needs 5 tanks crore on rain guns pocketed another Rs. 103 crore in
for 25,000 liters and 5 lakh tankers for 1 lakh acres. the name of the maintenance.

AP CM, Chandrababu Naidu, at the launch of a rain Labourers showing the withered groundnut
gun on August 28, 2016, in the field of farmer Sivanna plants in the same field- of Sivanna- in which
in Gunduvaripalli village of Anantapur district. the CM had launched the rain gun.

220 Emperor of Corruption


Rs. 80 Crore
Lokesh Swindles in the Name of Village Roads
Rs. 36 Lakh per km would be enough per 1 km tar road
But Government wants to give Rs. 69 Lakh
Cement roads can be laid at Rs. 40 lakh per km
Government is willing to spend Rs. 83 Lakh
Costs are directly proportional to commissions!
On an average, construction of tar roads would Dubious Web of Packages
cost around Rs. 35 lakh per kilometre. However, the
state government decided to spend a whopping Rs. Customarily, small contractors take up work
69 lakh for the job. It was the same case with the related to laying of roads about 2 kilometres or so
cement roads. While experts say cement road cannot which connect neighbouring villages. Realising that
cost wouldn't cost more than Rs. 40 lakh per doing these small jobs would not fetch them much;
kilometre, the AP government was more than willing Nara Lokesh drew up an elaborate plan. He converted
to spend Rs. 83 lakh. The government has prepared 50-60 such small jobs of 2-3 km into a package. A
the ground to lay 2,206 km of cement road and 2,749 total of 2,498 works were distributed into 40
km of tar road at such exorbitant rates to pocket huge packages. They decided to hand these jobs over to
money. The Chief Minister and his son will end up their favoured contractors for kickbacks through
making over Rs. 800 crore by awarding contracts to mobilisation advances.
their crony companies. Estimated Costs Hiked During DPR Stage
This entire corruption saga is taking place in the
engineering wing of the Panchayati Raj Department The government jacked up the estimated costs of
which is headed by minister Nara Lokesh. The the project in the Detailed Project Report (DPR)
government estimated a cost of Rs. 4,234 crore to lay itself. These DPRs were prepared by officials in the
new roads in villages which had no connectivity. The engineering wing of Panchayat Raj Department as
Asian Infrastructure Investment Bank (AIIB) agreed to per instructions of the top brass in the TDP
lend 70% of the cost. government.

Number of Constituencies Length of new roads


in which construction of Mandals
roads is being carried out 5,007
- 134
484 kilometres
Tar road Cement road Bridges
Total works
works works
- 2,498 - 845 - 631 22

Emperor of Corruption 221


In the Name of Tourism
Star Hotels Get All the Incentives
Annual Incentives to Tourism Rs. 213 Crore
Share of Star Hotels and Restaurants Rs. 150 Crore
The tourism sector in Andhra Pradesh is Subsidies the government will provide-
languishing despite the lofty claims by
● The land on nomination basis
Chandrababu Naidu as to its development.
● 100 % waiver of land use mutation charges
Entrepreneurs are not keen to invest in the
● 100 % reimbursement of land registration charges
tourism sector of AP thanks to the state
● Complementary infrastructure
government's unworkable approach.
● Capital subsidy and interest subsidy
The state government which is supposed
● Exemption of VAT-GST, luxury and entertainment
to develop basic amenities in tourist spots is
taxes
going exactly the opposite direction. It
● Power charges reimbursement
proposes to shower subsidies on the star
● 25 % road tax reimbursement
hotels and restaurants and has prepared an
● Assistance in marketing, staff skilling
outlay of Rs. 213 crore for these subsidies.
● Flexible bar policy
Here are the full details.
● Full subsidy of water tax
After having a consultation with tourism
entrepreneurs, the CM ordered the Tourism
Department to provide viability gap funding, Annual Royalties
capital subsidy and several other subsidies. Category Budget Subsidies
As a result, an outlay of Rs. 213 crore was (in Rs./Crore)
finalized and a major part-Rs. 150 crore- goes Hotels/Restaurants 150
to star hotels. It is also proposed that land MICE 20
will be allotted on nomination basis for the Establishments Next To Highways 10
hotels and tourism projects with the Amusement Parks 10
investment more than Rs. 100 crore. Water Sports 05
The Chief Minister agreed to these
Adventure Sports 10
proposals without applying his mind as to
Heli-tourism 02
their feasibility. He established the Andhra
Beach Amenities 01
Pradesh Tourism, Culture and Heritage
Home Stay/Agri-tourism 05
Council under his chairmanship to facilitate
TOTAL 213
this distribution.

222 Emperor of Corruption


Janmabhoomi Committees
- One Party Rule!
Local Bodies Rendered to Zilch
Without Bribe, No Help Comes Forth
To add the name
TDP is drunk with power. The party to the rural
housing list
has literally imposed its rule on villages
For
by appointing so-called Janmabhoomi 10,000
Latrines to
Committees, which were supposed to be
the welfare committees, but have 1,000 20,000
become all-powerful and corrupt. These
committees neither have any
constitutional sanction nor are they For Issuance
legal, still they wield the absolute power of Pensions To add the
in village administration because of the and Ration name to the
mandate that was given to them by Cards urban
Chandrababu government. This absolute housing list
3,000
mockery of democracy has installed the to 30,000
rule of Telugu Desam Party (TDP) in the to
5,000
villages, with all schemes and benefits 40,000
are being directed to the ruling party
Bribes being collected by Janmabhoomi Committees for different works (In Rs.)
members.
According to the constitution, the Despite the High Court's observation that such com-
Sarpanch in the village, the Chairman in the mittees exercising influence were inappropriate,
municipality, the Mayor in the municipal corporation there has been no change at the ground level.
are in consultation with the members of their The Janmabhoomi Committee comprises of Sarp-
respective local bodies supposed to decide the anch, one Mandal Parishad Territorial Constituency
functional priorities. (MPTC) member, two DWACRA Committee members,
It is unfortunate that, despite Andhra Pradesh two from welfare committees and Panchayat Raj
having a strong panchayat raj structure, Janmabhoo- Secretary (Convener), a total of seven people from
mi Committees have become the final authority to the committee. For all practical purposes, almost all
decide all the matters of importance at the local the members would be from the ruling party and
level. As to the matters concerning housing, pensio- they have decided all the beneficiaries of the
ns, ration cards and loans from SC, ST, BC Corporat- government schemes.
ions, the recommendations of Janmabhoomi The majority decision of the Committee is
Committees have become the final authority. People necessary for the finalisation of beneficiaries. In
were forced to bow down to these committees. places where the people's representatives belong to
As a direct consequence of this, the people who opposition parties, the Janmabhoomi Committee
are able to bribe these committee members are the members are able to exercise supremacy, in places
only people who are able to avail welfare schemes. where the people's representative belong to the TDP,

Emperor of Corruption 223


there is a unilateral exercise of power. In such places, made mandatory and using this power, the
the TDP cadre is misusing power and shamelessly Committee members are demanding money from
amassing huge wealth, which is evident from the way contractors.
their standard of living improved over the last four
Only TDP Allowed
years.
TDP members and sympathisers are being
Different Works, Different Bribes! selected as beneficiaries of the welfare schemes.
Janmabhoomi Committees decided bribes for Despite the eligibility of several people, who happen
every favour they render, every work they get done. to be sympathisers of the YSR Congress Party, they
The Committee members are fleecing the public. to were denied their rights and were sidelined. For
illustrate, in villages, for sanction of a house, the bribe areas where YSR Congress Party sympathisers and
demanded is Rs. 10,000 to Rs. 20,000, when it comes party workers are in majority, funds for public works
to towns and cities, anywhere between Rs. 30,000 were not sanctioned. For instance, Smt. Lakshmi
and Rs. 40,000 is demanded. In some instances, close Tulasi, Sarpanch of Narkullapadu, Guntur district has
to 10% of the amount sanctioned to beneficiaries is questioned the authority of the committee members
demanded by the Committee members. Similarly, for and this had angered the TDP members.
sanction of loans, Rs. 20,000 and for pensions and Subsequently, these members got her suspended
issue of ration cards Rs. 3,000 to Rs. 5,000 is twice. However, she was reinstated after she won the
demanded. As to the matters related to the case in the court. Still, these members thirsty for
construction of highways, drainages and bridges, the revenge, have not allowed any development works
approval of Janmabhoomi Committees is wrongfully to be undertaken in the village.

AP Govt. Cancelled the Tender


As No Kickback Involved
AAI Lost Bhogapuram Airport Tender for Not Being Corrupt
When a government organisation gets a contract,
no escalation or absurd hiking of prices would be
permitted. Ruling party leaders wouldn't be able to
call shots once the contract is commenced. But, if the
contract is given to a private entity, there would be
space for manipulation and ruling party leaders can
make the most of it. This explains the AP
government's cancellation of Bhogapuram Airport
tender won by the Airports Authority of India (AAI).
Here is the full story.
In the AP cabinet meeting held on January 19,
2018, the government has taken a decision a scrap
the Bhogapuram Airport tender, which was awarded
fair and square to the AAI for the construction of the
Airport. An interesting fact, Chandrababu Naidu
himself had the awarded contract cancelled for the
obvious reasons.

224 Emperor of Corruption


How Did AAI Win the Tender Why Was Tender Cancelled?
Tenders for constructing a greenfield The Chief Minister's claim that the tender was scrapped
international airport were invited in June because of delays in land acquisition is completely nonsensical.
2016, through Public-Private Partnership (PPP) Even government officials have confirmed this.
model. To the whims of Chief Minister, the last Officials who don't want to be quoted said the Ministry of
day for the submission of tenders was Civil Aviation and the Ministry of Environment and Forest have
extended till July 31, 2017. given their approvals for the building of an airport in
Within that date, GMR group and AAI have Bhogapuram. Even the tender given by AAI was in full
submitted their bids. On the same day, compliance of the tender document and offered a substantially
technical bids were opened. Both the entities large percentage of revenue. AAI has a built several
were deemed fit by the technical committee, International Airports in the country and has a proven track
which was appointed by the government. record. With all these factors in play, there is no sound reason
On August 21, 2017, the financial bids for tender cancellation.
were opened in the presence of the Chairman Now, Chandrababu has announced that there will be
of the Bhogapuram International Airports another PPP model based tenders for the construction of the
Corporation Limited. In these financial bids, same airport. It is evident that Chandrababu is not looking for a
AAI offered a 30.2% and GMR offered 21.6% partner who is good for the state, but rather he is looking for a
share to the government. Because AAI offered partner that would like to be in cahoots with him and paying
a larger share, it ended up winning the tender. some good old-fashioned kickbacks!

purpose vehicle named Bhogapuram International


This is The Airport… Airport Corporation Ltd. was established. Though
initially, they have thought of building in two
The Bhogapuram International Airport is phases, later it was decided to develop the entire
supposed to come up on 2,703 acres at the cost of airport in a single phase in 2,703 acres. In this land,
Rs. 2,461 crore. The Housing and Urban 1,733.66 acres was for the airport, 592.69 acres
Development Corporation (HUDCO) has granted a land for commercial purposes, 175.70 acres for
special loan of Rs. 840 crore to pool the airport approach road and commercial purposes
government, private and assigned lands. For the and 201.21 acres were allocated to the special
construction and development purposes, a special purpose vehicle.

Emperor of Corruption 225


Mines are
Finished!
Rs. 7,950 Crore
Sand Mafia Plunders AP
In the Last Four
Years, TDP Leaders
Made a Total of
Rs. 7,950 crore

Half of this Amount


Rs. 3,975 crore
Has Ended up with
Chief Minister
Chandrababu Naidu
and His Son Nara
Lokesh

In the First Two


Years of TDP rule,
the TDP Leaders
Have Used Women
Self-Help Groups as
Front and Made The GO No 94 which has given entitlement
of sand reaches to women self-help groups.
Rs. 2,480 crore
In the last four years, the 459 sand reaches of Andhra Pradesh have been
ransacked by the TDP leaders. The fact that the ruling party leaders have made
more than Rs. 7,950 crore expound the extent of plunder, which has not only
In the Remaining increased the costs of construction for the ordinary people but also caused peril
Two Years, They to the river ecosystem in the state.
The ruling party leaders have made Rs. 2,480 crore in first two years by taking
Have Looted contracts of sand reaches in the guise of women self-help groups. Apparently,
to the Tune Chandrababu Naidu government felt even that pretention was unnecessary, so,
he has come up with a much-touted 'free sand policy'.
of Rs. 5,470 While the stated objective of this policy was to provide sand free of cost to all
crore in the Guise the people by doing away with the government ownership over the sand reaches,
of Free Sand in practice, it was a formal handover of the reaches to TDP MLAs and local leaders.
Once the government gave up its ownership over the reaches, the TDP leaders

Emperor of Corruption 227


have encroached upon them and started selling sand at
much higher prices than before. Through the sale of
sand, the ruling party leaders have made another Rs.
5,740 crore.
The ruling party sand mafia was organised under the
headship of Nara Lokesh, the son of Chandrababu Naidu.
The plunder was so rapacious that even the cabinet sub-
committee, which was consisted of the ruling party
ministers, had conceded the existence of illegal sand
mining and the government's failure to rein in the illicit
activity. The state finance minister Yanamala
Ramakrishnudu has acknowledged in a press meet that
the sand loot had taken place to the extent of Rs. 2,000
crore in the first two years of TDP rule. The orders of so-called free sand policy
issued on March 4, 2016.
Rs. 2,480 Crore in the First Two Years
village, which is quite close by the Chief Minister's
There are 459 sand reaches in Andhra Pradesh, on the
residence. When people were protesting the illegal sand
rivers such as the Godavari, Krishna, Tungabadhra and
mining in Erpedu village of Chittoor district, the lorries of
Pennar; and 83 of them are major ones. Before
the local TDP leader, who took over the sand reach in
Chandrababu, the rate of cubic meter sand was Rs. 40.
nearby Penna River, had crushed 15 people to death.
The state government used to get Rs. 180 crore revenue
Sand Reaches are Private Properties Today
at this price. Chandrababu has introduced the new sand
While announcing the destined-to-doom free sand
policy only to increase the sand price from Rs. 40 to Rs.
policy, the TDP government has stated that people could
650 per cubic meter, which was a 16-times raise.
take sand with the help of tractors from any reach. This
The raise must have brought 16-times more income-
was merely a public stand. However, in practice, the
around Rs. 1,920 crore per annum- to the government.
government had let its party leaders take over the
However, the state government has got only Rs. 964 crore
reaches. Having claimed the ownership, these leaders
in 17 months, which comes at Rs. 680 crore per annum.
have coerced the people to cough up money for the
This means, between 2016 and 17, the state exchequer
supposed to be free sand.
lost the revenue of Rs. 2,480 crore (Rs. 1,240 crore x 2
According to government regulations, only the lorries
years). After the so-called free sand policy, which was
that are being used for irrigation projects and the
announced in March 2016, there was not even single
construction of roads shall be allowed and no other
paisa revenue to the state government.
lorries should be allowed. Though the officials claimed
that all the private lorries were GPS-tagged, the lorries
Free sand worth Rs. 5,470 crore
were used during the nights by turning off the GPS
On the very day of announcement of new sand policy equipment.
(March 4, 2016), the TDP leaders have taken over the 459
sand reaches across the state. They have fixed the prices District-Wise Sand Mafias Krishna
at their whims and fancies and started selling the sand as
The sand mafia of Krishna district is under the control
if the sand reaches were their private property. They did
of the minister Devineni Umamaheswara Rao and the
not allow others to set their foot in sand reaches. Thus,
ruling party MLA Bonda Umamaheswara Rao. They
the free sand policy had freed reaches from the
indeed have been dredging sand from River Krishna
government control only to place it under the control of
unstopped. By 2017, they have made about Rs. 1,000
ruling party leaders.
crore from illegal sand mining.
According to an estimate, the ruling party leaders
have made Rs. 5,470 crore between March 2016 and 2016
Guntur
and October, 2018 from the sand mining. They had been
mining sand from the beds of rivers and rivulets in the In Guntur district, the sand mafia is made up with a
broad daylight against the rules. This illegal mining has minister, four senior MLAs and their aides. The sand
been taking place even at the reaches of Undavalli reaches at Penumudi and Ravi Anantavaram are being

228 Emperor of Corruption


exploited Repalle MLA Satya Prasad. The sand smuggling
in Pedakurapadu constituency is being taken care of by
the local MLA Kommalapati Sridhar. He has been selling
more than 200 lorries of sand every day from the sand
reaches at Konuru, Kasthala and Kogantivaripalem.
Ponnuru MLA Dhulipalla Narendra and Tadikonda MLA
Sravan Kumar are other active players in this rapacious
enterprise. Their illegal sand mining killed six
engineering students during last Krishna pushkram
festivals, which took place in 2016. The unsuspected
students who were swimming in the River Krishna have
suddenly got drowned as they have stepped into a huge
The clipping which shows the state Finance Minister Yanamala
trench, which was a result of the greedy sand mining.
Ramakrishnudu, who was confessing that an open robbery of
Rs. 2000 crore took place in the name of the sand mining
North Andhra Districts
In Amadalavalasa constituency of Srikakulam district, Godavari, the sand is being mined here in the most
government chief whip Koona Ravi Kumar and his reckless fashion. A minister from Krishna district is
henchmen have started illegal sand mining in controlling the sand mafia here. The machinery that is
collaboration with the Guntur cartel. In Kottur area, supposed to be used for Polavaram project head works is
Patapatnam MLA Kalamata Venkata Ramana is being used for illegal sand mining. Hundreds of trucks of
controlling the sand cartel. In Palakonda constituency, sand are being sent out every day.
the Nagavali and Vamsadhara rivers are being heavily
dug up to meet the sand demand of Vizag city. In Rayalaseema Districts
Echherla constituency, which is being represented by the In Chittoor district, the TDP leaders have formed a
energy minister Kimidi Kala Venkata Rao, the Nagavali cartel to carry out the illegal mining. While 114 reaches
river is being exploited to the fullest. were permitted for mining, the mafia is exploiting 90
In Visakhapatnam district, sand mining is going on reaches beyond permitted levels. This cartel is making Rs.
unabated in Sarada, Varah and Sarfa rivers. In 50 lakh per day from the illegal mining. Sand mined from
Vijayanagaram district, Vegavati, Champavati, the Swarnamukhi river at Srikalahasti is being sent to
Edompulagedda, Nagavali, Suvarnamukhi and Gostani Bangalore and Chennai cities. Due to this reckless sand
rivers have become victims of the illegal mining. Around mining, all the wells in Srikalahasti town have dried up.
14 leaders of the ruling party are controlling sand mafia In Putalapattu and BNR Pet of Chittoor rural mandals,
in the areas of S. Kota, Nellimarla, Paradi, illegal sand mining has been going on unchecked. N.
Gajapatinagaram and Ramabadhrapuram. About Rs. 4.60 Amarnath Reddy, a YSRCP MLA who defected to ruling
crore worth sand is being mined in this district every day. TDP, is controlling this cartel. The groundwater levels
have come down drastically in Pedapanjani, Penumuru,
Godavari Districts BucchinaiduKandriga mandals due to this rapacious
This saga of greed and venal exercise of power sand mining. In Nimmanapalli and
continues in the district after district. In Nagalapurammandals, the reaches have completely
Kapileswarammandal of East Godavari district, MLA depleted thanks to the rapacious mining of TDP leaders.
VegullaJogeswara Rao has taken control of the reaches at In Kuppammandal, the ZPTC members, MPTC members
Korumilli, Tatapudi and Kapileswaram. In Tuni and sarpanches are sharing the spoils based on their
constituency, YanamalaKrishnudu, brother of the finance position in the party hierarchy. An aide of the chief
minister YanamalaRamakrishnudu, is making about Rs. 3 minister controls this cartel.
lakh a day with illegal sand mining. Similarly, in Kottapeta The 16 sand reaches in YSR district are being fully
constituency, about Rs. 1 lakh worth sand is being sold exploited by the TDP leaders. Sand is being transported
per day by the TDP leaders. to Karnataka on a massive scale from Kondapuram. At
In West Godavari district, the Polavaram project is Potladurti of Erraguntlamandal, brothers of C.M. Ramesh
being used for illegal sand mining. Though the Central are controlling the sand mafia. When the people of
Water Commission has banned sand mining from the HanumanaGutti revolted against the illegal mining, the

Emperor of Corruption 229


TDP leaders unleashed the police and suppressed the In Anantapur district, about 150 trucks of sand is
protests. The government whip, Meda Mallikarjun Reddy, being mined every day from VedavatiHagari river at
his relatives and other TDP leaders are digging up Rachhamarri of Kanekallumandal. Uravakonda MLC's
Cheyyeru river. Chitravati, Penna, Papagni and Cheyyeru henchmen have been control this ring. In Uravakonda,
rivers are being ruthlessly exploited by greedy TDP Guntakallu and Vajrakarur areas, the TDP leaders have
leaders Putta Narasimha Reddy and Satish Reddy. amassed lakhs of rupees from the illicit sand mining. Five
In Pottisriramulu Nellore district, Rs. 150 crore-worth MLAs and an MP have made huge fortunes from the sand
of sand was mined in a single year from Penna, mining.
Swarnamukhi and Kalangi rivers and sold in Chennai and Tungabhadra and Handri rivers in Kurnool district
Bengaluru. Every single day, hundreds of trucks of sand is have become money-spinners for greedy TDP leaders. A
being mined from Somasila, Kotitheertham, Ulavalapalli, prominent TDP leader's son is selling sand from Handri
Mamooduru, TK Padu, Madapalli, Mahamadapuram, river near Gorantla, Erragudi and Mannekunta villages.
Kota, Telugurayapuram, PadamatiKhambhampadu, Po- The sand is being sent to Hyderabad at night. In
dalakuru, Kolagatla, Apparaopalem, Iruvuru, Dorava- Kodumuru constituency, a trusted lieutenant of a key
risatram, Tada, Sullurupet and Vaakadumandals to be TDP leader is mining Tungabadhra river at Kottakota and
sold in Chennai and Bengaluru. Eerrladinne villages for his buyers in Hyderabad.

Heavy Irregularities in Sand Mining Failure brand on


Cabinet Subcommittee DWCRA Groups
Chandrababu Naidu- who has been using
The cabinet sub-committee has conceded that illegal
DWCRA groups for his political ends- has
sand mining and transportation were true. The sand is dubbed DWCRA groups as failures in order
being mined with the help of heavy machinery and the to hand over the sand reaches to his party
government has failed to stop this illegal mining due to leaders. He announced that he had
the lack of inter-departmental coordination, felt the introduced the (so-called) 'Free Sand Policy'
subcommittee that was appointed to examine the because of the failure of the DWCRA
implementation of the so-called sand policy. The groups. Though CM had stated that CCTVs
committee consists of K. E. Krishna Murthy (Revenue would be fixed at sand reaches, the promise
Minister), N. Chinarajappa (Home Minister) and Sujaya which never took shape as it was never of
Krishna Ranga Rao (the Minister for Mines). his intention to protect them.

Sand that has been fetched through a boat is being shifted into a lorry with the
help of excavators at Surayapalem in Vijayawada Rural mandal

230 Emperor of Corruption


Rs. 2,000 Crore
Minister's Sketch for Granite Mines

The order of the district cooperative


Cotton crop in the lands of the SCs. departmetnt official cancelling the
registration of Dalit's land society.
The governments should ideally help Dalits to get January 19, 1975, to about 250 impoverished Dalit
lands so that they can come out of the centuries-long families. These families have formed "Yadavalli Weaker
oppression. In AP, the government is doing exactly the Section Land Colonisation Society" in 1976 and have
opposite. It indeed took back the lands that were once been cultivating the land ever since. These lands got
allocated to Dalits by the previous governments. Here is water facility in 2008 thanks to Sri Arunodaya Somepally
one of such brazen story of a TDP Minister. Sambaiah Lift Irrigation Scheme completed by then
In Yadavalli village of Chilakaluripet mandal of Chief Minister Dr. Rajasekhara Reddy. From then
Guntur district, about 250 Dalit families were given 416 onwards, these Dalit families had been reaping a rich
acres land in 1975. A survey by geologists identified harvest in every season.
black pearl granite mines worth over Rs. 2,000 crore in
these lands. And this discovery has become a curse to Minsiter's Evil Design
the poor Dalit families. Having realised the value of the lands, the minister
Learning about the discovery, the AP civil supplies set his eyes on the lands. He indeed had plans to start a
minister Prattipati Pulla Rao drew up a sinister plan and granite unit in his constituency and this information
snatched the lands from Dalit families with the help of came in handy for his proposal. He gave his plan a shape
different government departments. The success story of with the help four government departments. He first has
the minister, who is amassing fortunes at the cost of secured a false report from the Agriculture Department
poor Dalit farmers, has to be recounted to be believed. stating that these lands had saline content and not
Here is the story. conducive for cultivation, the Cooperatives Department,
The then government of Andhra Pradesh has in its report, accused the Yadavalli Weaker Section Land
allocated 416.50 acres of land (of survey no: 381) on Colonisation Society of improper records maintenance,

Emperor of Corruption 231


the Mining Department confirmed the existence of
granite mines in these lands and the report of Vigilance
Department struck the last nail by accusing that the Dalit
families were trying to sell off their lands to industrialists,
who were interested in the granite mining. Based on
these reports, the AP government has de-recognized the
society, declared these lands as government lands and
finally cancelled the land entitlements of the poor
families.
Early Applications
Dalit farmers giving a memorandum to Ms. Kamalamma,
Well before the derecognition, the minister had got a member of National Human Rights Commission.
quite a few people to apply for mining permissions in
these lands. While 39 people have applied, 20 of them
were the followers and employees of the minister. Facts!
According to the rules of the Mining Department, the The Dalit families have been cultivating these lands
first applicant gets permission. The following are some of with the help of the society since 1975. Rice and cotton
the applicants - are their staple crops. These farmers have also availed
■ Y. Sivaiah, S/o Balakotaiah, Door No: 1-130, Yadavalli
themselves of crop loans from banks. The Agriculture
village. His wife Rama Devi is Sarpanch of this village Department has the data of crops cultivated on these
and belongs to TDP. lands during the previous years. These lands can in no
■ Y. Ravindrababu, S/o Sivaiah, Door No:1-130, Yadavalli
way have saline content as there is no sea nearby.
village. He is the son of Sarpanch Rama Devi. Interestingly, according to the latest documents of the
■ Ch. Venkata Rami Reddy, S/o Subbarami Reddy, Door
government, there was no saline content in the lands
No: 5-285, Jalaiah Colony, Chilakaluripet, He is that surround these lands. The cancellation of land titles
working as a supervisor in Swathi Oil Mills, which is in was a well-planned conspiracy orchestrated by the
the name of Pulla Rao's daughter Swathi, located in minister Prathipati Pulla Rao with the help of
Ganapavaram village. government machinery, which shamelessly lent itself to
■ Shakila SambasivaRao, S/o Krishnamurthy, Door
ensure the success of his vicious anti-Dalit scheme.
No:2-52-2, Ganapavaram village, Nadendla mandal.
He is a cashier in the minister's cotton mill. Inquiry by SC and ST Commissions
■ Taaluri Subba Rao, S/o Ramulu, Door No: 3-404, 9th
Line, Pandaripuram, Chilakaluripet. He has been The Dalit families have filed complaints with the
working as a cotton buyer in the cotton mill owned national SC and ST Commissions. As the commission
by the minister. member Kamalamma, who had investigated the issue,
■ Bommineni Rama Rao, S/o Papaiah, Ganaesuni palem
had retired, the Dalit families have filed their fresh
village, Yadlapaadu mandal. He is working as a cotton complaints before the commissions. Both the
buyer in the minister's cotton mill. commission have accepted the complaint and the
■ M. Sudhakar Reddy, S/o Venkata Reddy, Door No: 3-
Chairpersons of both the commissions have summoned
104, Manukondavari Palem village, Chilakaluripet Kantilal Dande, then Guntur district collector, the other
mandal. He is also a cotton buyer in the minister's state government officials who canceled this allocation
cotton mill. to Delhi.
■ Kommalapati Purnachandra Rao, S/o Venkateswarlu,
The commissions have questioned Kantilal Dande
Door No: 5-46/5-1, Muvvavari Bazar, Ganapavaram weather he had issued any notices to the members of the
village, Nadendla mandal. He is working as a TMC unit land colonisation society before derecognizing the
in-charge in Sivaswathi Textiles, which belongs to the society. However, since he could not produce any records
minister. that confirm the issuance of notices, the commission has
■ Meduri Satyanarayana, S/o Picthiah, Door No: 4-190,
issued orders stating that the farmer can continue to
Kondruvari Street, Ganapavaram village, Nadendla enjoy the lands until the further date of inquiry and the
mandal. He is working as a production manager in Guntur district authorities must not interfere with their
Sivaswathi Textiles. right.

232 Emperor of Corruption


Rs. 1,962 Crore
Illegal Mining in Minister's Area
500 trucks a day, Rs.1.2 Crore worth gravel transported
Rs. 1,962 Crore looted in 1,540 days over four and a half years
Though the AP Pollution Control Board has
banned illegal mining in the state, it is being
carried out with impunity in the minister Devi-
neniUmamaheswara Rao's constituency, Myla-
varam. Though the mining permits were canc-
elled, the mining mafia has been transporting
about 500 trucks of gravel every day; the value
of which is about Rs.1.2 crore. Thus, in the last
four and a half years, the minister's followers
have made about Rs. 1,962 crore from the illegal
mining.

Details of Scam Granite hills in Paritala.


There are about 1,204 hectares of hilly
wasteland in survey no. 801 of Paritala with a close relative of the minister, the owners of
Donabanda village of Kanchikacharlamandal. The Modern Crusher, Powerstone Crusher, Ayyappa Crusher
mining mafia of the minister has dug up 94 quarries and and NNR Crusher are involved in illegal transportation of
set up 72 crushers were in this place. These quarries are gravel on a daily basis.
located bang on the Vijayawada-Hyderabad highway, Police and transport department officials are remain
though they should not be situated within a kilometre playing mute spectators, while Rs. 1.2 Crore worth gravel
from the highway, according to the rules. The crushers, is being mined every day. The AP Pollution Control Board
however, are being operated within 100m of the had directed on June 20 that illegal mining should be
highway. stopped immediately on the account of widespread
Favouring the minister, the TDP government has pollution in Paritala. However, the transportation of
granted permissions for 94 quarries, ranging from over 2- gravel continues till date uninterruptedly. Even the
5 hectares of land each. However, quarries have been issuance of way-bills is stopped; the transportation of
dug up in about 800 hectares. In Paritalamandal, along gravel has been going on without any hitch.

Mining Mafia Turns Irrigation Canal into Wasteland


The Ibrahimpatnam major canal, which fetches water their quarries.
from Nagarjuna Sagar to Paritala of Kanchikacherla During last summer, the government has issued Rs.
mandal in Krishna district, is 5 km long. The canal runs 9.35 crore funds for earth work of the Sagar canal, which
next to 1,204 acres of hilly wasteland located in survey runs between Duggiralapadu and Donabanda and 24
number 801 of Donabanda quarries. This canal also km-long. The contractor, a crony of the ruling party, did
supplies water for two major tanks in that vicinity. The not do any work at all on a full 5 km stretch but had
mining mafia has occupied this canal too. They have laid claimed the bills for entire work. Thus, he has managed to
roads over the canal indiscriminately in 5 km radius of swindle Rs. 2 crore from the public exchequer.

Emperor of Corruption 233


Rs 1,000 Crore
One-time Settlement for Illegal Mining
The government is trying to benefit its leaders who have been into illegal mining
Its one-time settlement scheme will drastically bring down the total
penalty that they otherwise would pay
This is a conspiracy to protect the mining mafia from
Court cases and to save them from facing penalty
Particulars of Illegal Mining Activities as
charges. The TDP government is bringing in a 'One-time
of 31 December, 2017
settlement' option so that offenders are saved from S.No. District Number Fine Dues
penalties worth more than Rs. 1,000 crore. Certain of Cases (In Rs.)
important leaders from the ruling party had carried out 1. Srikakulam 248 38.42
illegal Limestone, Laterite and Manganese mining worth 2. Vizianagaram 384 102.91
hundreds of crores. In certain other places, mining 3. Visakhapatnam 56 14.20
activities have been carried out without leasing the land.
4. East Godavari 34 147.27
Vigilance & Enforcement and mining department
5. West Godavari 34 62.96
officials had conducted raids at times, only to file cases
6. Krishna 70 17.07
against the ones who were transporting the minerals. By
7. Guntur 77 44.15
December 2017, over 2,258 cases were pending. The
8. Prakasam 39 1.87
benamis of ministers, MPs and MLAs of the ruling party
had to pay penalties to save themselves from facing 9. Nellore 10 5.54
Court cases. 10. Chittoor 73 309.46
To save them from paying penalties worth hundreds 11. YSR 521 221.74
of crores, the TDP government implemented the one- 12. Anantapuram 25 13.62
time settlement method, in which the offenders could 13. Kurnool 757 197.72
get away by paying a nominal penalty. Total 2,328 1,176.93
"Most of the names (offenders) are those of our
people. They cannot pay in large sums. Please arrange (A penalty of Rs 1,176.93 crore is yet
for one-time settlement," a minister belonging to the to be collected from 2,328 cases. Additional
Rayalaseema region said to the Minister for Mines, Sujay details and pending cases are to be added
Krishna RangaraoRavu. to these figures.)
After the minister ordered the officials to implement
one-time settlement scheme, the ministry had to halt it mining (mining beyond the permissible limits) a penalty
after media reports emerged. Interestingly, all the of 5 times the price would be charged.
preparations had already been done to save the
benamis from facing charges. For example, if a person is booked while mining
At the time of raids, the Vigilance & Enforcement and without license, he/she is obligated to a penalty of Rs. 10
mining department officials would charge a penalty of 5 crore if the mineral value if Rs. 1 crore. Similarly, if the
to 10 times the price of the minerals. As per law, a mining is carried out beyond the permissible limits, Rs. 5
penalty of 10 times the price should be levied if the crore charge would be levied if the value of mineral is Rs.
mining is carried out without license while upon illegal 1 crore.

234 Emperor of Corruption


Rs. 1,000 Crore
Limestone Looted
Gurajala MLA Yarapathineni Srinivasa Rao's Illegal Mining in 141 Acres
TDP MLA Yarapathineni Srinivasa Rao has indulged in expressed extreme displeasure over the matter. It said
illegal quarrying of limestone to the extent of over 1 that the concerned officials are searching for a non-
crore metric tonnes so far, the worth of which is said to be existent black cat a dark room. So, the Court issued a
over Rs. 1,000 crore. The plunder has started as soon as notice to TDP MLA Yarapathaneni seeking an
TDP came to power in 2014, in Konanki village in explanation. It also sought advice on the future course of
Piduguralla mandal, Nadikudi and Kesanupalli villages of action from CAG, CBI and Central mining department.
Dachepalli mandal in Gurajala constituency.
The MLA has indulged in illegal quarrying in Back to Square One
government lands spread over 90 acres in survey After High Court's admonishment, the government
numbers 680 and 681 of Konanki village, 23 acres in got into the action and stopped illegal quarrying activity
Nadikudi and 28 acres in Kesanupalli. Lokayukta, in the Palnadu region. However, it did not
which probed this issue of illegal mining, clearly issue notices to any individual
established the role of MLA Yarapathaneni. connected with the mining mafia.
It issued directives asking the Instead, it implicated 17
government to set up check posts to check innocent persons in cases
illegal quarrying, but with the activity accusing them of being involved
continuing uninterrupted, in July 2015 a in the plunder of 31 lakh metric
PIL was filed in the High Court. In March tonnes of limestone and holding
2016, the High Court passed strictures on them responsible. It submitted a
the issue after several hearings in the report to the High Court stating
matter. It directed the authorities to fix that it had taken necessary action
responsibilities, levy penalties and stop the and had also suspended officials
illegal quarrying activity immediately. concerned in the matter. On August
17, 2018, the government directed the
PIL in High Court CBCID to probe Yarapathineni Srinivasa Rao
Subsequently, the collector of the time Kanthilal in the matter, as a token measure.
Dande submitted a report to the High Court saying that
all illegal quarrying had been stopped. The assistant Zero Action! Some Examples
director of mines submitted a report to the High Court ☛ Blasting material was used extensively to mine over a
saying that from 2000 to 2015, 12 lakh metric tonnes of crore metric tonnes of limestone between 2014 to
limestone only had been mined in the Palnadu area. July 25, 2018. Police did not bother to inquire into the
However, on November 16, former MLC T.G.V. Krishna explosions, even after the fact that Dachepalli police
Reddy filed a PIL in the High Court stating that as per station was in the earshot of the blasts.
satellite images, in the period between 2014 to 2015 ☛ In 2010, gelatine sticks explosion claimed the lives of
alone, approximately 39 lakh metric tonnes of limestone 13 people in Dachepalli
had been mined by the mafia led by Gurajala TDP MLA ☛ Permissions were granted to the MLA's brother-in-law
Yarapathineni Srinivasa Rao. for quarrying in Tangeda of Dachepalli mandal and
Piduguralla.
High Court's Displeasure ☛ The mining mafia threatened millers and doubled the
The High Court which heard the PIL 0n July 25, 2018, cost of limestone.

Emperor of Corruption 235


Rs. 390 Crore
Mining Barytes Commissions
The Loss Incurred by APMDC due to decrease in
contract basic prices is Rs. 280 Crore.
Loss incurred by APMDC due to Triveni Earthmovers is Rs. 531 Crore
The Money Made By the Chief Minister Was Rs. 250 Crore
Andhra Pradesh Chief Minister
Chandrababu Naidu spoke so passionately
about inviting global tenders to develop
byreates mining in the state. However, what
he had done in practice was to prevent
national and global companies from
participating in the barytes tender process.
The Chandrababu government first
issued a GO, which had complied with the
experts' opinion that 70 % to 75% of the
global market price has to be kept as the
basic price. Then, the government issued
another GO which cancelled the first GO
and decided 65% to 70% of the global price
as the basic price. Finally, the CM has
decided 65% of the global price as basic
tender price. The GO that has decreased the basic rates.
After reducing the base price, the chief
minister has brought down the number of the help of tailor-made tender regulations.
competitors by imposing stifling conditions. He has In this round of tender, thanks to the restrictive
ensured that only three of his favoured companies would regulations, only two companies have participated.
participate in the tender bidding process. He then Those companies also have formed a ring and quoted a
formed a ring with them. By doing everything he could, higher price. Despite the low competition, the state
he had helped the companies pocket about Rs. 280 crore government did not cancel the tender and awarded the
and took half of the amount Rs. 140 crore as the kickback. contract to Triveni Earthmovers.
Through the process of tender cancellation, awarding
Barytes Mining Corrupted
it to Triveni company for the short-term, re-awarding the
After coming into power, the TDP government has revised tender to same Triveni company at a higher rate,
cancelled a tender that was already announced. Then it Chandrababu Naidu has inflated the cost of the work by
removed existing contracting company VLC&SC and 33%, compared to the costs quoted by the initial
awarded the work to Chennai-based Triveni Earthmovers contractor VLC&SC. This decision of the government
Pvt. Ltd. for a short period of time. A little later, the burdened the APMDC to the tune of Rs. 531 crore and
government has once again revised the tender and share of the decision makers in this amount is Rs. 250
awarded it to same Triveni company at a higher rate; with crore.

236 Emperor of Corruption


Rs. 200 Crore
Imported Coal Lasts Long!
Value of a Scandal in the Coal Purchases is Rs. 546 Crore
Money That Changed Hands in This Transaction is Rs. 200 Crore

Summons issued by central revenue intelligence directorate on the problems in the bills of imported coal.
The AP Chief Minister has pocketed Rs. 500 crore for fresh tenders, it could have saved a lot of money. This
taxpayers' money by purchasing imported coal at higher means the power generating entity paid additional price
prices. A public interest litigation (PIL) was filed in the of US$ 20.55 for each ton of coal it had bought. In all, it
Hyderabad High Court on this. Here are the details. has wasted the public money of Rs. 246 crore.
The Andhra Pradesh Power Generation Corporation
Ltd. (APGenco) has entered into agreements with PEC Though it looked like it was the two government
Limited and MSTC Ltd.- two central government companies that have involved in this purchase, it was
companies- on May 6, 2013, to purchase imported coal indeed the coal mafia that ran the show in the guise of
for its thermal projects. Though the tenure of the sub-contractors. Because of their pressure, the APGenco
contract was only 6 months, the purchases continued has made too many concessions to the coal suppliers.
until the end of 2015. While 12 lakh ton of coal was Though it was the onus on the contractor to transport
purchased during the contract period, 19.25 lakh ton the coal from Krishnapatnam port to thermal projects,
was purchased after the agreement time. the APGenco paid the fee. For the transportation costs,
The per ton coal rate in the international market the contractors were paid Rs. 100 crore during the
during the contract period was US$ 69.15; it became contract period and Rs. 200 crore after the contract
US$ 80.15 after the inclusion of sea freight charges of period. Thus, a total of Rs. 546 crore of public money was
US$ 11. However, the price came down to US$ 52.40 by wasted the public funds. According to a highly reliable
March 2015 and its final rate after addition of US$ 7.23 of source, about Rs. 200 crore was paid to the Chief
sea freight charges was US$ 59.63. Had the Genco called Minister as the commission.

Emperor of Corruption 237


'Sarkari Thieves' in
Chennampalli Fort
Historic Fort Excavated for Hidden Treasures...
CMO Permission to Private Agency
Since 13 December 2017, excavations took place in anvil of the State or Central governments, the officials of
the fort of Chennampalli village in Tuggali mandal, Revenue, Mining and Archaeology should be present at
Kurnool district in an attempt to discover treasure the time of unearthing. But, only the Revenue and
chests. The Chief Minister's office did not even inform Mining officials handled the operation without even
the Department of Archaeology and Museums before informing the Archaeology Department. Following
permitting a private agency to dig up the historic protests from the villagers, some of them had been
monument. There was not even a record (on paper) of included in the committee.
the permission from the CMO. While local RDO and Right from the beginning, the excavation in
Collector are inconsistent in their explanations, it is Chennampalli Fort raised quite a few doubts. When the
learnt that an important leader in the ruling party was villagers questioned as to permission to carry out
behind the operation. excavation, Adoni RDO Obulesu said he had prior
Following an uproar from the villagers, a Grama permission from the authorities. Later, when the YSRCP
Sabha was conducted to pacify the locals. Yet, the leaders asked for the documents, he did not respond.
excavations did not get over. Local grapevine is Collector Satyanarayana said, on 18 December, that
Chennampalli Fort has quite a lot of hidden treasures. the preliminary orders were received from the CM Office.
For 10 years, some private individuals have been trying Admitting that the Archaeology Department was not
to dig up the monument with the help of some of the informed in the matter, the Collector said he would
villagers. make sure the Archaeology officials are present during
excavations when YSRCP leaders approached him. The
CM's Permission to a Private Agency fact that the excavations were carried out at night as
Responding to a private agency's application for well, indicates that an important leader from the ruling
excavations, the Chief Minister accepted the application party was supporting the private agency.
and ordered the district officials to permit the
excavation activities. The district Collector admitted to History of Chennampalli Fort
having received the orders from the CM. Prior to The tale is that Vijayanagara rulers shifted the
commencing the excavations, the officials have not even treasures and weapons in Gooty Fort to a secret place
convened a Grama Sabha. On the first day (December between 1584-1614 when the empire was under attack
13) and the officers began excavations without from the Golkonda Sultan and the Portuguese. An
informing the villagers. underground tunnel was built between Gooty Fort and
Following objections from the locals, a Grama Sabha Chennampalli Fort via Swarnagiri (now called Jonnagiri).
was organised. In the meeting, the opinion of the Later, a large Fort was built across 100 acres in
villagers was not sought. When the villagers, the YSRCP Chennampalli.
leaders and CPI leaders demanded to go through the It is popularly believed that the Vijayanagara rulers
permission documents, the officers evaded the question hid large amounts of diamonds and other valuables in
and resumed the excavation in the name of ' the forts in Adoni, Raichur, Gooty and Bellary. The belief
Observation Committee '. was fuelled with the discovery of deities and other
Although the monument does not fall under the structures in these forts.

238 Emperor of Corruption


AP is No.1 in Corruption
NCAER, CMS Surveys Confirm
The NCAER's state
investment
potential Index,
which Studied
theBusiness-
friendly climate in
different states of
the country.

scandals. The majority of Telugu media houses, which


are controlled by Chandrababu Naidu, always trying to
push the corruption activities under the rug.
The state government officials have put concerted
Under the rule of Chandrababu Naidu, Andhra
efforts improve the statistics that are being maintained
Pradesh has earned the dubious distinction of being one
by the Department of Industrial Policy and Promotion
of the most corrupt states in India. Today, in AP, there is
(DIPP), which works under the finance ministry. This has
not a single department or governance process that is
improved the state corruption rankings in the NACER
not plagued with corruption. This was confirmed by the
surveys. However, at the ground level, there was not
studies of the prestigious National Council for Applied
much change and the corruption levels are still very
Economic Research (NCAER), a prominent New Delhi-
high and threatening. The people of the state are
based think-tank, and Centre for Media Studies (CMS),
suffering from the rule.
another important think-tank from Delhi. Such
dangerous levels of corruption was first flagged by the
State Potential Investment Potential Index - 2016, of the What is NCAER?
NCAER. For this study, the NACER has studied five major The NCAER was established with the support
aspects naemly labour, infrastructure, economic climate, of the Central Government and Ford Foundation
political and governance stability, and perceptions of a in 1956 to study the effect of fiscal policies of the
good business climate. The findings of the study have economy and government. Major functions of
confirmed the charges of opposition YSR Congress Party this institute are to conduct studies, organizing
about Rs. 3 lakh crore corruption by Chandrababu seminars and preparing reports on crucial policy
Naidu. In the NACER study, more than 74.3 percent issues. Quite a few private and government
people said the corruption was a severe problem, 17.1 organizations work with this institute and about
percent felt it was a controllable problem and it was not 49 global organisations from 22 countries have
at all an issue for the rest of the 8.6 percent. collaboration with the NCAER.
Chandrababu Naidu tried to avoid the embarrassment
by saying that the state was number one in both the Centre for Media Studies
development and corruption. However, in fact, the The Centre for Media Studies (CMS) is a
matter is it was Chandrababu Naidu who lifted the voluntary organisation based out New Delhi. The
floodgates for corruption in the state. The CMS-India CMS has made its mark on journalism education,
Corruption Study-2017 ranked Andhra Pradesh to be the media analysis and social research. The CMS-India
2nd most corrupt state in the country. The next year, the Corruption Study today stands out as an
study gave 4th rank, which was a slight improvement . important source of information on the
This was possible as the government has been trying to corruption levels in different states.
little more secretive than before as to the scams and

Emperor of Corruption 239


'Yellow' Tax in AP
TDP MLA Demands Rs. 5 Crore from Railway Contractor

The Company Secretary of Montecarlo, Kalpesh Desai Made the Venkatagiri MLA Karukondla Ramakrishna,
Details of these Threats Public During a Press Meet in Nellore. who was inspecting the railway line.

Andhra Pradesh government makes tall claims demanded the company a ransom of Rs. 5 crore. The
about the tax incentives and business-friendly MLA has threatened the company representatives
climate in the state. However, there is an additional with dire consequences if the company failed to
tax burden in the state, i.e. yellow tax, that is being cough up the amount. When the company ignored
extorted by the MLAs and leaders of the ruling TDP. his threats, he sent his henchmen to the work site
(Note Yellow is the official colour of the TDP.) The and have employees and workers on the site
contractors have to give commissions and kickbacks assaulted. When the company protested, the MLA
in order to get the contracts. Even if the contractors bragged that he had a direct access to the CM and
got the works without the role of the ruling party, was not afraid of anyone.
they still have to pay the percentage in order to He threatened the site engineers Ramu and
complete the work peacefully. Bhaskara Rao of beheading if the company fails to
The audio tapes of a TDP MLA threatening a meet his demands. These threats were made public
railway contractor- Montecarlo company-from by Mr. Desai, the company secretary of Montecarlo,
Gujarat have shown the way the lawmakers have in a press meet conducted in Nellore. He handed
become the law onto themselves and putting over the media the audio CD which contained the
businesses at disadvantage. As to the incident, records of the MLA's threats to the site engineer
Montecarlo has won the contract to construct the Ramu. According to Mr. Desai, the MLA was
railway line between Obulavaripalli of YSR district demanding either 5 percent of the Rs. 183 contract
and Krishnapatnam of Nellore district. This project amount or Rs. 5 crore in cash.
was sanctioned in 2014 and the work was started in The extortion of MLAs, with the goal to amass as
December 2014. By April 2016, 80 % of the work was much money as possible to win the 2019 election by
completed. buying votes, has become a visible trend in Andhra
At this point, K. Ramakrishna, TDP MLA from Pradesh. Chandrababu Naidu has his full support to
Venkatagiri constituency of Nellore district, this official plunder.

240 Emperor of Corruption


From 2 Acres to Super Riches!
This is How Chandrababu Made his Fortunes
Chandrababu Naidu was born in a lower-middle-
class family and inherited only 2 acres of land. He was
in politics right from his university days and got elected
as an MLA in 1978. His political career continued ever
since. As a result, for a long period, from 1978 until
today, he had no source of income other than the
salaries drawn from his political offices and the meagre
income from his landholding.
Despite such modest beginnings and no gainful
occupation, Chandrababu has achieved an astonishing
financial success and today he owns a company that
worth thousands of crores of rupees! However, the way
he made this fortune is a great mystery. A close
examination of his possible income sources gives us a
glimpse into his riches.

Positions and Sources of Income


Since 1978, Chandrababu held the following
positions. activity between 1983 and 1988. This means there was
➤ In 1978, he was elected as an MLA from Chandragiri no additional source of income during this time other
constituency on Congress party ticket. During this than his agricultural income, according to his own
time, his monthly salary was Rs. 350. declaration and yet he promoted Heritage Foods in
➤ Between December 1980 and February 1981, he 1992.
served as the Animal Husbandry Minister. Today, the valuation of Heritage Foods is a few
➤ Between February 1981 and February 1982, he thousand crores of rupees and has the presence in
served as Cinematography Minister. entire south India, in Tamil Nadu, Karnataka, Kerala and
➤ Between February 1982 and January 1983, he held Andhra Pradesh. The company also extended its
three portfolios including Ground Water, Minor operations to Maharashtra and Delhi. The interesting
Irrigation and Technical Education. aspect of Heritage Foods is - its profits shoot up when
➤ During his tenure as a minister, he earned a Chandrababu Naidu is in power and go down when he
monthly salary of Rs. 2,500. is out of power. So much so for his transparency that he
In 1983, he was defeated in the election. Going by has got the audacity to buy his own products for his
his known sources of income, his income would not government schemes without competitive tenders; as
have crossed Rs. 1 lakh. From 1983 to 1989, as per the was seen in Chandranna Kanuka and Buttermilk
affidavit filed by Chandrababu Naidu in the AP High Distribution schemes.
Court in 1998, his annual income was Rs. 36,000 and The profitability of Heritage Foods is very much
made a total of Rs. 2,16,000 in these six years. linked to Babu's political fortunes. The company has
earned a net profit of Rs. 17 crore in 2004-05, the year
Heritage Turn Babu lost his power. However, from then onwards,
Chandrababu promoted a company named Heritage lost its steam. It announced a reduced net
Heritage Foods (India) Pvt. Ltd. in 1992. On October 10, profit of Rs. 10 crore in 2005-06. The net profit has
2004, he declared in the prospectus of Heritage Foods further come down to Rs. 1.7 crore in 2007-08. Since
Company that he indulged in no industry or business then, the company has run into losses. In 2009-10, the

Emperor of Corruption 241


company declared Rs. 35 crore net loss. Finally, the
company fortunes have revived in 2013. This was
allegedly because of the understanding between
Chandrababu Naidu and then AP Chief Minister N.
Kiran Kumar Reddy.
Mr. Reddy- who then was running a minority
government- depended on the support of
Chandrababu Naidu and, in return, he gave business to
Heritage Foods. When a motion of no confidence was
proposed against Reddy's government, the Telugu
Desam Party (TDP) HAD supported the government by
issuing a whip despite being the main opposition. In a
294-seat AP Assembly, the halfway mark was 148. Mr.
Reddy's government survived the no-confidence
motion even though it had the support of only 146
MLAs, two short of the majority. Thanks to Babu's whip,
15 MLAs were disqualified; 9 from Congress and 6 from
TDP, who voted against their parties in favour of no
confidence. This has resulted in Heritage Foods
announcing a net profit of Rs. 45 crore in 2014-15.
With this, it is evident that the profits of Heritage
are always linked to Babu's political fortunes. This
should speak volumes about the way Chandrababu
made the political power as the major source of his
revenue.

Leader of Disproportionate Assets


Despite the limited sources of income, have not
taken any property from his father-in-law N.T. Rama
Rao in the form of dowry and continuous losses of
Heritage Foods, the fortunes of Chandrababu Naidu
have grown steadily and disproportionately. Following
are some of the assets acquired by Chandrababu Naidu
at different points of his political career. The methods of
his acquisition also demonstrate his modus operandi. A news clip showing the self-declaration of family
assets of Chandrababu in Assembly in 1999. He presented
a) Chandrababu bought 65 acres of land in Nellore a laughable value of Rs. 4 crore for his total assets.
district in 1985 when he was doing nothing and
depending on his family's agricultural income. inexplicable gap!
b) Soon after, he purchased another 250 acres in the d) In 2000, Naidu's mother Ammannemma bought 5
same district in the same year. These lands included acres of land (survey no: 59) in Madinaguda area of
some of the government and assigned lands. Hyderabad, which is the heart of the city. She also
c) Though Chandrababu participated in no industry or has bought another plot of 1,135 sq. yards of land
business activity between 1983 and 1989, as per in upmarket Banjara Hills near Hitec City for mere
declaration of assets in 1999, he announced the Rs. 40 lakh. She then has transferred both the
assets worth Rs. 7.83 crore. However, the declared undervalued pieces of real estate to her grandson
sources of his income during this period were - Nara Lokesh a year later.
annual agricultural income of Rs. 36,000 and e) From the 600 acres land earmarked for the IT
monthly remuneration of Rs. 20,000 as the director development, Chandrababu Naidu granted 7 acres
of Heritage Foods. This was surely a massive and of land in Kondapur to a benami company named

242 Emperor of Corruption


Gift deed
A document of
executed by
self-declaration of
Ammannemma,
family assets by
mother of
chandrababu Naidu
Chandrababu
before the clection
Naidu, in favour
commission 2009 .
of Nara Lokesh.

Divyasree Soft Tech Realtors Pvt. Ltd.


f ) Babu also gave selective leaks about the
development proposal of Hitec City to a few
cronies and caused hundreds of crores of rupees
loss to the innocent farmers and landowners who
ought to have benefitted from this development.
Chandrababu is using the same modus operandi in
distributing the lands of Amaravati city, the present
capital of Andhra Pradesh, to his cronies.
There are several media reports about the assets of
Chandrababu Naidu in India and abroad, including in
Singapore and Malaysia. He is a politician who always
used his political clout to grow his business. His art of
abusing public office for private gain is monumental.
There is no surprise that he is today a billionaire
politician despite coming from a humble background.

Chandrababu Naidu, in the last four and half


years rule, turned every financial transaction
of the government into an opportunity for bribes,
kickbacks and commissions. Having held the
systems hostage, he twisted the rules and trampled
upon the legal provisions. With his voracious
conduct, Chandrababu Naidu has amassed lakhs
of crores of rupees. Today, he cannot bracketed
into a politician who has a few thousand crores A portion of self-declaration of family assets by
of ruees, he is a multi-billionaire politician who Chandrababu before the Election Commission.
owns a few lakh crores of rupees ill-gotten wealth.

Emperor of Corruption 243


Scams Between 1995-2004
Chandrababu Previous Regime
Chandrababu Naidu had only two-acre land in
1978, however, today he owns Heritage Foods, which is
a billion dollar company. Whenever Babu is in power,
Heritage profits shoot up even while all other dairies
are running in losses. An examination of Heritage
profits would reveal the story!! In 2004-05, the year
Babu lost his power, Heritage earned the net profit of
Rs. 17 crore. However, from then onwards, Heritage lost
its steam. It announced a reduced net profit of Rs. 10
crore in 2005-06. The net profit has further come down
to Rs. 1.7 crore in 2007-08. Since then, the company has
run into losses. In 2009-10, the company declared Rs.
35 crore net loss.
Finally, the company fortunes have revived in 2013.
This was because of the understanding between
Chandrababu Naidu and then AP Chief Minister N.
Kiran Kumar Reddy. Mr. Reddy who was running a
minority government took the political support of
Chandrababu Naidu and in turn gave business to
Heritage foods. As a result, Heritage announced Rs. 45
crore net profit in 2014-15! Ever since its profits are
consistently growing.
Chandrababu is a politician who always used his
political clout to grow his personal fortunes. The nine-
year rule of Chandrababu Naidu, between 1995 and
2004, was an embodiment of corruption. He gifted After Chandrababu decided to build the Hitec City
away the lands and contracts to his confidants, at Madhapur, he had passed on this information to his
benamis and partymen despite widespread criticism. confidant Murali Mohan, now a TDP MP, before making
He killed so many public sector undertakings and then it public. Murali Mohan bought all the lands that he
sold them off at throwaway prices to his stooges. The could around Madhapur area and developed several
real estate value of these units was quite a lot of times real estate ventures. Chandrababu has used the same
higher than the sold off prices. modus operandi in Amaravati and made several times
Chandrababu converted the watershed and work more money.
guarantee schemes into the major sources of revenue In liquor purchases too, he has bent the rules to
for his party cadre. During his tenure as an ad hoc Chief benefit three companies. According to a report of the
Minister before the 2004 assembly elections, he Vigilance Department, the state lost Rs. 600 crore
allocated 800 acres of land of the University of between 1995 and 2004 because of the policies of
Hyderabad to a company called IMG Bharata, which Chandrababu Naidu. There was not even a single
was a defrauding company. This allocation was later project that was awarded without taking commissions
cancelled by Dr. Y.S. Rajasekhara Reddy's government. during his first spell.

244 Emperor of Corruption


From day one, Chandrababu has been gifting away dog. Chandrababu applied this formula and killed
the lands to his cronies, aides, party leaders and several public sector enterprises in the state. He first
stooges. Despite the resistance from opposition parties, made them sick and then sold them off at throwaway
he allocated land in Manikonda for a golf course and prices. While the value of lands of Hyderabad Allwyn
another 534 acres to EMR Properties, which has later was Rs. 150 crore, he palmed off the company for just
become an epicentre of a huge real estate scam. Rs. 3 crore. He also has ripped off Nizam Sugars which
Though there was no need, he gave away 17,434 acres has offered a supporting system to the farmers of
of land to industrialists during his tenure and the value Nizamabad district since the Nizams' era. In all, he sold
that land is about Rs. 1.60 lakh crore. the public sector units worth Rs. 636 crore for just Rs.
203 crore. According to some of the officials who
Public Sector Ruined worked in his government, he has pocketed a good
To kill a dog, you first need to brand it to as a mad amount of money from these transactions.

Scams List - 1995 to 2004


Scam Worth in Rs. (in Crores)
Counterfeit Stamps Scam 5,000
Deposits in Urban Banks that were Closed 2,000
Watershed Scheme Scandal 2,000
Gains from Water and You Scheme 1,600
Liquor Policy Favouritism 600
Food for Work Scheme Scandal 560
Sale of lands of Public Sector Units 400
Land allocated for Tourism Projects 350
Somasila Lands Scam 112
Yeleru Scam 100
Scholarships Scam 100
Land Allocation to Cement Factory in Vijayawada 55
Land Allocation to Rahejas in Madhapur 50
Timers’ Scam 30
Chief Minister’s Relief Fund 10

Emperor of Corruption 245


Details of Land Gifting
Company Land Worth in Rs.
(in acres) (in Crores)
Shamshabad Airport 5,500 79,860
IMG Bharath 850 16,456
EMR Properties 535 10,367
Beachsand Trimex 1,700 10,000
Vizag Pharma City 2,143 10,372
Krishnapatnam Port 2,000 9,680
Gangavaram Port 1,800 8,712
Raheja Group 109 280
Agakhan Foundation 100 1,936
Kakinada Port 354 1,713
Hitec City (All Phases) 80 1,548
IVRCL 50 968
Microsoft 42 813
Wipro 30 580
Computer Associates 30 580
Malaysia Township 35 508
Maheswaram Hardware Park 18 348
Madhapur IT Park 9 174
Singapore Township 80 193
Dabur 1,000 100
Orient Cements 820 8
Total 17,285 1,55,196

246 Emperor of Corruption


Corruption in the Sale of PSUs
Company Market Value Sold Value Rs.
(in Crores)
Allwyn Sanathnagar Unit 150 3.00
Republic Forge Company 30 16.00
Nizam Sugars 120 55.00
Madhuranagar Sugar Ltd. 40 22.50
Lachhayyapet Sugar Mill 40 21.45
Montojapally Distillery 18 10.00
Chagallu Distillery 20 9.00

Co-operative Mills
Hanuman Junction Sugars 30 11.40
Nandyal Sugars 20 6.01
Palakollu Sugars 10 3.30
Gurajala Sugars 14 5.27
Hindupur Sugars 20 8.00
Inkollu Cotton Mill 30 4.59
Adilabad Cotton Mill 12 8.00
Nellore Cotton Mill 32 12.23
Edlapadu Cotton Mill 50 7.50
Total 636 203.35

Emperor of Corruption 247


Democracy in Danger!

2 April, 2017: YSRCP MLAs Bhuma Akhila Priya, Adi Narayana Reddy, Sujay Krishna
RangaRavu and Amarnath Reddy were sworn-in as Telugu Desam Party (TDP) minsters.

"I, Nara Chandrababu Naidu, I, Nara Chandrababu Naidu,


swear in the name of God/solemnly do swear in the name of
affirm that I will bear true faith and God/solemnly affirm that
allegiance to the Constitution of India I will not directly or indirectly

c
as by law established, that I will uphold communicate or reveal to any
the sovereignty and integrity of India, person or persons any matter
that I will faithfully and conscientiously which shall be brought under
discharge my duties as a Minister for the my consideration or shall
State of Andhra Pradesh and that I will become known to me as a
do right to all manner of people in Minister for the State of Andhra
accordance with the Constitution Pradesh except as may be
and the law without fear or favour, required for the due discharge of
affection or ill-will. my duties as such minister."

22 February, 2016: Chandrababu Naidu with YSRCP defecting MLAs


Bhuma Nagi Reddy, Bhuma Akhila Priya, Jaleel Khan, Adi Narayana
Reddy and MLC Narayana Reddy at CM's camp office in Vijayawada.

Emperor of Corruption 249


Opposition MLAs were offered Rs. 20 crore to
Rs. 30 crore for joining the TDP. A total of 23
MLAs (Nandyal MLA Bhuma Nagi Reddy had
passed away), three MLCs and two MPs were
purchased by the TDP.
Without an iota of shame, the MLAs were
sworn-in while the people of the state were
watching in shock. Like never before, the
country's democratic institutions stayed mum
even as Chandrababu violated the anti-
defection law. No action was taken even after
representations were made to the Assembly
20 April, 2016: Chandrababu welcomed Speaker, the Centre and the President. Even
YSRCP Bobbili MLA Sujay Krishna RangaRavu judicial institutions couldn't make any
into TDP at Vijayawada. difference. It is even more interesting that the
On 8 June 2014, Chandrababu took oath MLAs were given a promise on protection
as the Chief Minister. Since then, he has failed from facing legal charges of defection.
to live up to the oath that he had taken. In unprecedented move, the government
Making a mockery of the constitution and has stopped releasing development funds for
ignoring democratic values, Chandrababu has the constituencies of the Opposition MLAs.
been ruling the state like an autocrat. After Through the Chief Minister's special treasury,
taking the oath in the name of the Almighty, Chandrababu is releasing funds to
to faithfully and conscientiously discharge the
duties, he overturned the very spirit of the
oath in his very first decision as the Chief
Minister.
Breaching the oath of secrecy, he
showered generosity upon his benamis by
leaking them the information on the location
of the prospective capital in Amaravati
region. He has announced the the present
capital location after his cronies had
purchased lands in and around the capital
region for throwaway prices. Not only did he
lured the YSRCP MLAs with his ill-gotten 28 February, 2016: Chandrababu
money but also inducted a four of them into welcomed YSRCP Yerragondapalem
MLA Palaparthi David Raju
his cabinet. This deed of him was nothing but
into TDP at Vijayawada.
a blemish on the spirit of democracy. The

250 Emperor of Corruption


constituencies as per his will, only to those Similarly, the discussion for removal of the
represented by the TDP. In addition, TDP Speaker was taken up on the same day it was
leaders in the constituencies represented by moved, as per the Assembly's business rule
the YSRCP are given funds. Also, orders were 71 (1). But, Article 179 (C) of the rules
issued to allow TDP leaders to attend official suggests the discussion be taken up 14 days
programs. Chandrababu has been ruling the after such motion is passed.
state as if the government schemes are Business rules of the Assembly, which
meant only for TDP supporters. abide by the Constitution, were ignored by
Everyone knows what Chandrababu was TDP in taking action against the defected
up to in the 2015 note for vote case, in which MLAs. It was the same case in the finance bill.
Anglo-Indian MLA Stephenson was offered The Opposition already sought the Speaker to
crores of rupees in return for support in the opt for division voting, but it was announced
MLC elections. After Chandrababu's audio
and videotape went viral, he had to
compromise on the state's interests at the
hands of Telangana CM KCR. Andhra Pradesh
incurred irrevocable losses with
Chandrababu's decisions.
He has failed to enforce the Supreme
Court order in favour of AP as to the 10th
Schedule institutions. With this, the state has
lost its rights on 142 institutions under the
4 April, 2016: Chandrababu welcomed
10th Schedule. Even after the Centre gave
YSRCP Jaggampeta MLA Jyothula Nehru
orders in favour of Telangana, Chandrababu
into TDP at Vijayawada.
decided not to file a counter in the Supreme
Court. The opposition MLAs who raised their that the bill was passed without opposition's
voice against the injustice to the state in consent. One would have to wonder if there
Godavari river waters were suspended. was fair governance in the state.
Interestingly, the Legislative Affairs As a result of YSRCP MLA RK Roja's
Minister himself said there was no relevance questioning and demand for following
for the business rules of Assembly. Quoting democratic values, she was suspended for a
provisions of Article 212 in the Constitution, year. Even though the High Court ordered the
he said no Court could intervene in affairs of government to withdraw suspension, the
the Assembly. On occasion of the budget government did not act. The 52nd
session of Assembly last year, YSRCP moved a Constitutional amendment was made in 1985
no-confidence motion. By taking up the issue to protect democratic foundations from
for discussion on the same day, the State unconstitutional activities like defection of
government stood by defected MLAs. legislators. It was included in the 10th

Emperor of Corruption 251


Schedule of the Constitution. After it was
found that the law was not sound, the 91st
amendment was made in 2003.
The 91st Constitutional amendment
eradicated the menace of mass defection of
one-third legislators. They would be deemed
as expelled from the Assembly, in any such
case. Despite sound legislation in place, the
anti-defection law is being timed and again
violated in the state.
Telangana's Assembly Speaker Sirkonda
Madhusudhanachary did not take action on
the defection of 12 TDP MLAs to the ruling
TRS party. Later, on 10 March 2016, the
29 February, 2016: Chandrababu
Speaker issued orders stating the merger of
welcomed YSRCP Budwel MLA T
the 12 TDP MLAs in TRS. He said the anti-
Jayaramulu into TDP at Vijayawada.
defection law wouldn't apply since two-thirds
of the TDP's MLAs defected. the atmosphere and lowered the dignity of
Chandrababu, who had spoken against the August House. By flouting the business rules
defections on hundreds of occasions in of the Assembly, Chandrababu practically
Telangana, shamelessly welcomed the turned the Assembly into a TDP office. Not
defections in Andhra Pradesh. There is a need only did he refuse to release funds to the
for a national debate on the defections from Opposition MLAs, but he had also robbed the
political parties. opposition of its right to speak on public
At the same time, there is a dire need for issues.
transferring the powers from the Speaker to YSRCP had to boycott the 2018 budget
the Election Commission, with a clear-cut session in protest against Chandrababu's
time limit of three months to take action attitude. His government did not even follow
against the defected MLAs. We could save the tradition of consulting the opposition
democracy if these changes are brought to after the boycott. Opposition leaders were
the defection law. With leaders like not invited for the official events or involved
Chandrababu at the helm, democracy will in the choice of the location for the capital
inevitably get destroyed. city.
Chandrababu betrayed the people of
Partisan conduct in
Andhra Pradesh big time as to the special
running the Assembly
category status (SCS). Not even a single
With his autocratic and undemocratic discussion was held with the opposition on
methods, Chandrababu Naidu has impaired the SCS issue. After taking a U-turn and losing

252 Emperor of Corruption


the people's faith, Chandrababu called for an
all-party meet. Chandrababu had turned Mockery of Democracy
Amaravati inauguration ceremony into his
household affair!
with Janma Bhoomi
The TDP chief turned the Secretariat and Committees
the camp office into the party offices by Violating the Constitutional
convening party meetings in official spaces. provisions and suppressing the powers
He had used the Assembly as a means to given to the local bodies, the TDP
promote his experiences in his 40-year leaders were given powers in the name
political career instead of discussing public of the Janma Bhoomi committees,
issues. He had thanked the Centre after which are acting like extra-
accepting the special package preferring it to Constitutional bodies. Denying the
the SCS, in the state Assembly. people's right to be the custodian of
In the process of luring the opposition the public money, the committees are
MLAs into TDP fold, Chandrababu misused exploiting the masses seeking money
government functionaries such as Intelligence for various kinds of government
officers. After making 600 promises and schemes and benefits.
vowing to sign the loan waiver scheme soon Chandrababu spent of crores of
after coming to power, he deceived all rupees for travelling abroad in special
sections of the state. Now, he claims to have flights, conducting meetings and
fulfilled 80% of the promises. Several people summits. He had to flee the joint capital
were booked in PD cases for fighting for the city of Hyderabad after he was caught
SCS. red-handed in the note for vote case.
The leader of Opposition, YSRCP chief Y.S. Over the past four years, crores of
Jagan Mohan Reddy, who travelled to Vizag to rupees have been wasted for renting
participate in the protests for SCS, was out various government offices.
blocked inside the Airport. BJP National He had spent Rs. 100 crore of public
President Amit Shah was attacked by TDP money for repairing his home. Also,
workers at Tirupati. The government officials crores of rupees were spent for the
were misused for party activities and CM's temporary residence in
Mahanadu meetings. Vijayawada and the private building on
Misuse of power was at its peak during the the banks of river Krishna.
bye-election to Nandyal, where the ruling Chandrababu has wasted crores of
party ministers, MPs, MLAs and MLCs camped rupees by reserving a special suite in
to distribute crores of rupees. In addition to the Park Hotel in Hyderabad for his
making tall and false promises, Rs. 1,000 was family.
given per vote.

Emperor of Corruption 253


Chandrababu Naidu
A Treacherous and Corrupt Man
These Are the Opinions of Important Leaders and
Parties of Andhra Pradesh Said on Different Occasions.
Babu is a Honeyed Sword!
Chandrababu is a
cheat, honeyed sword,
modern Aurangzeb,
traitor worse than
Godse, powermonger
who killed democracy...
he is worse than a
beast, and a snake that
entered into an anthill. I
have never imagined that this gentleman would
backstab me for political power. However, he
did not backstab me alone, it was a backstab to
the people, to the mandate of people, to the
democracy that is trusted by the people and to
the aspirations and ideals of the people. You
have happened at the hands of Swami and
know how absurd it sounds when this
Potinaidu, however, a close observation reveals
gentleman claims that he would continue NTR
that it could take place silently for such a long
policies. He seems to outsmarted Godse, who
time only due to the support extended by
has first greeted Gandhi with folded hands and
Chandrababu and his officials. If the
then shot him with a pistol. This is a shameful
investigation can get a little deeper, the role of
and unpardonable crime!
Chandrababu Naidu will come out. That's why
- N.T. Rama Rao,
all the care is being taken to limit the
Former Chief Minister of Andhra Pradesh.
investigation. Moreover, Chandrababu Naidu's
Chandrababu is Main intention can be easily made out from the way
he responded (to the allegations) and ordered
Culprit in Yeleru Scam
the probe.
BJP Book 'Udayakamalam' released in ➤ BJP made it clear in 1997 that Chandrababu
February 1997 was the main culprit in the Yeleru lands
Though the entire Yeleru scam appears to scam. It published a book titled

254 Emperor of Corruption


"AvinitiEerulaiParinaYeleru Babu Reign was
Scam" in February 1997 as
part of its Udayakamalam
Full of Corruption
series. The Communist Party of India
➤ The BJP published another (Marxist) or CPI (M), which was the
book titled "PrajaCourtlo erstwhile alliance partner of TDP,has
Charge Sheetu" on 100 wro- published a book titled
ngs of Chandrababu. The "BabuJamana, AvinitiKhazana". In
book stated that Babu the book, the party has claimed that
speaks differently in the pre there was a corruption allegation
and post-election times. every day and a scam every month.

Everythings is We Stand by Our Word Even Today


Corrupted in Babu Rule! We don't change our word
This is the method of Telugu every day. We tell the same
Desam Party. They yell out that thing in 2014 that we have told
they won't tolerate corruption in 2003. There was a lot of
and act as if they are caught a corruption during
cold even when the ministers Chandrababu Naidu's regime.
and the MLAs are stinking with We have furnished the full evidence of his
the corruption. Everything is corrupted under corruption is our book (BabuJamana-
TDP rule. They have even swallowed the rice AvinitiKhazana). If everything was fine during
that meant to feed the poor during the famine. Chandrababu's reign, why was he voted out
- The then CPI (M) AP state secretary B.V. from the power? At least now the truth has to
Raghavulu in the foreword of the book come out. The culprits have to be booked. At
BabuJamana- AvinitiKhazana. least the next government must investigate his
corruption.
- CPI (M) Telangana State Secretary
TammineniVeerabhadram on April 17,
2014.

Emperor of Corruption 255


CAG Indicts AP's
Corrupt Government
Ubiquitous corruption, kickbacks, percentages
in every transaction, unchallenged misuse of
public funds, gifting away of irrigation
2015&2016
projects to contractors, mind-blowing
corruption in road projects…these are the
achievements of Chandrababu Naidu in last
three years. This was not an assessment of any
opposition party but the annual report
submitted by the Comptroller and Auditor
General (CAG).

The CAG's 2015-2106 report, which was extremely


critical of about Chandrababu Naidu's corrupt
governance, has highlighted several irregularities in
Naidu's administration. For instance, it has pointed out
that the government did not use the central funds
allocated for the development of Amaravati and
submitted false accounts to the centre. Though JNNURM
funds were lapsing, the government did not make any
effort to utilise them, said the report.

Highlights of CAG report


Pattiseema…the Legal Plunder
The CAG took serious objection to the manner in
which the TDP government colluded with contractors to
make huge kickbacks. It faulted the government for
taking up the Pattiseema lift irrigation scheme without
any prior plan, without starting the works of the
Polavaram right canal distributaries and without
identifying the domestic and industrial beneficiaries.
This thoughtless move of the government had
benefitted the contractor to the tune of Rs. 372.02 crore,
said the report. The report made it clear that entire Patti

256 Emperor of Corruption


flying hours per month. The company couldn't
Rs. 14.33 Crore Against Rules submit relevant files for auditing to the national
There were auditing body.
several irregularities ■ The state government paid Rs. 5.06 crore to the
in rent payments to company for using its services between July and
the helicopters that September of 2014. Since there were no records
were used by available for this use, the CAG couldn't cross-check
Chandrababu Naidu, the veracity of the claim.
according to the CAG ■ According to the 12.1 clause of the agreement, the
report. During 2014- 100 flying hours would be used per month and
15, Chandrababu had the minimum guaranteed fare was Rs. 25 lakh.
used private However, between October and December of
helicopters and paid 2014, only 60 flying hours were used in each
Rs.14.33 crore towards the expenses. These payments month and a whopping Rs. 5.06 crore was paid to
were highly unnecessary and amount to an the company. Between January and March, 50
irregularity, the report said. hours were used in every month and a huge
payment of Rs. 4.21 crore was made.
Highlights of the CAG Report
■ The state government entered into an agreement
with M/s Saras Aviation Services Pvt. Ltd. in
September 2014 to use a minimum of 100 flying
hours a month of single or twin engine helicopters
for five years. The minimum monthly fee was Rs.
25 lakh.
■ Saras Aviation was selected by the government
arbitrarily without following any competitive The portion of the report which stated that Rs. 14.33
bidding process. While finalizing the agreement, crore was unnecessarily spent on helicopter rent.
there was no formal assessment as to the need for

Seema exercise became futile as it could not benefit the had increased the estimated cost of the project, the CAG
intended beneficiaries. In 2015, the AP government report revealed. The report stated that another favour
claimed that it wants to offer the benefits of Polavaram worth Rs. 106.17 crore was also extended to Megha in the
project in advance by completing the Pattiseema pump house construction despite the fact that there was
scheme, a no-storage project. According to the tender no change in the basic parameters. The explanation
notification, the estimated cost of the scheme was Rs. given by the Water Resources Department was
1,170.25 crore. According to GO 94, the government unacceptable, said the auditing body. Besides the
must not award the tender to contractors who quote aforementioned benefit, Megha had received some more
more than 5 % excess to the estimated cost. benefits in pump house contract. Though the centre has
However, in Pattiseema tenders, Megha had quoted waived the excise tax on the pipes used for irrigation and
21.99 % excess, and yet, it got the contract. To make this drinking water projects, the AP government paid Rs.
possible, the government converted the remaining 32.01 crore as excise tax reimbursement to Megha.
16.99% (21.99-5 = 16.99) as a bonus for completing the Another 14.22 crore was paid in the name of workers'
works within a year's time. This bonus clause was a total welfare tax.
humbug since the tender notification itself had a one- The company brought down the capacity of motors
year deadline for the project. Despite such an explicit and pipes but this cutback did not reflect in the project
rule, the government made it an excuse to benefit estimated the cost and in the bargain, the contractor
Megha to the tune of Rs. 199 crore. Chandrababu made another Rs. 20.62 crore. In total, the AP
changed the tender rules to grant undue benefits to his government extended undue benefits to the extent of
favoured company. Due to this decision, the government Rs. 372.20 crore to Megha, concluded the CAG report.

Emperor of Corruption 257


Irregularities in Excise Department
The CAG has made the several irregularities of loss of Rs.39.90 crore to the public exchequer. The
the Excise Department public. The teams of auditing Guntur and Narasaraopet offices collected a license
body had inspected 27 offices of the departments fee which is Rs. 14 lakh lower than the stipulated
and went through the files of the year 2015-16. amount. They also have collected lower amounts for
During the inspection, the CAG teams could find permit room licenses. The CAG emphasized the
irregularities of about Rs. 1.29 crore in 38 cases. An importance of an internal vigilance wing to prevent
inspection of nine bars and restaurants in Vizag has such irregularities and faulted the state government
shown that the department did not collect the 10% for not making any of such anti-corruption
additional tax for 2014-15 and this has resulted in a arrangements.

Chandrababu, on the one hand, stated that he would However, in doing so, it also has extended a benefit of Rs.
complete the Polavaram project by 2019 and on the 21.81 crore to one of its favoured companies, said the
other, he said that Patti Seema will be in use for the next CAG report. According to the tender rules, the
20 years. He also gave a statement that Patti Seema won't construction of bridges on canals, state and national
be used once Polavaram project is completed. Making a highways shall be done by the contractor himself.
simple deduction out of the CM statements, the CAG However, the state has taken up this burden by collecting
concluded that Patti Seema would be in use only for Rs. 6.17 crore from the contractor and entrusted this
three years and will be useless since Polavaram would be work to another contractor at a higher cost of Rs.33.26
completed by 2019. crore. Due to this decision, the TDP government has
burdened the public exchequer by Rs. 27.09 crore. In
Funds Lift for Contractors Pushkara Lift Irrigation Scheme alone, the state
CAG has censured the AP government for extending government helped the contractor pocket Rs. 48.90 crore
excessive benefits to contractors in lift irrigation projects with its questionable generosity.
in its special report to the AP assembly on the status of
the lift irrigation projects during 2015-16. The works of 17
small and medium lift irrigation projects that are
supposed to provide water to 25.35 lakh acres were not
up to the mark, according to the CAG report. The
auditing body faulted the government's gifting away of
Gollapally lift irrigation project contract, which is a part of
Handri-NeevaSujalaSravanti scheme and is worth Rs. The portion that touched upon the wastage
47.18 crores, on nomination basis. In all, the of resources in Guru Raghavendra scheme.
government's compromised approach resulted in a steep
hike in the estimated costs of these projects. Rs. 48.55 Crore Wasted
in Guru Raghavendra
The state government has taken up Pulakurti lift
irrigation scheme on Tungabhadra lower canal works (as
part of Guru Raghavendra project) to provide water to
The portion of the report which said the Pushkara 9,380 acres. The estimated cost of the project was Rs.
scheme contractor was extended undue benefits 113.26 crores and the project was taken up in August
2011. The works worth Rs. 48.55 crore were executed
Rs. 48.90 Crore Pushkara Burden between June 2014 and April 2016. The contractor had
The state government has decided to provide water bought pipes and electro-mechanical equipment.
to 1.86 lakh acres through Pushkara lift irrigation scheme. However, since the government failed to complete the
land pooling for the project, the equipment couldn't be

258 Emperor of Corruption


Rs. 10 Crore Corruption in Computers' Purchase
The CAG report pointed out a huge corruption in
the procurement of computers for village
panchayats. The government has knowingly made
excess payment of crores of rupees to the vendors, it
said. According to the details, a tender was called for
the purchase of 7,631 computers under the Rajiv The portion which confirmed the corruption in
Gandhi Panchyathiraj Swasaktikaran (RGPSA) computers' purchase under the RGPSA scheme
scheme by then undivided AP government. Post-
bifurcation, the AP government entered into an panchayats have gone. In financial year2015-16, the
agreement with contractors in July 2014. Centre had released Rs.934 crore for 12,920 village
While the actual price of a computer, a UPS and a panchayaths. However, the Panchayath Raj Depart-
printer is around Rs. 40,000, the CAG report pointed ment couldn't submit the details related to the
out that the AP government had entered into an usage of these funds to the central auditing body.
agreement to pay Rs.67,213. It bought 3,869 The department has also failed to submit the
computers by paying additional Rs. 27,213 for each expenditure details of Rs. 175 crore allocated by the
computer, Rs. 10.68 crore in total to the contractor. state government. This irresponsible conduct of a
The CAG report revealed that the Panchayath Raj government department came in for sharp criticism
Department doesn't know where the 14th Finance and was severely reprimanded by the national
Commission funds and central funds for village auditing body.

fixed and funds spent on the equipment have gone


waste.
Domination of Nomination
in Handri-Neeva Works
The TDP government has axed the contractor of
Gollapally reservoir works (which is a part of the second
phase of HNSS) on the pretext of execution delays. The
remaining work was converted into a contract of Rs.47.18
crore and given to a new contractor on a nomination
basis. In the new contract, the Chandrababu government
has brought down the full reservoir level (FRL) from
532.20 meters to 529 meters. By bringing down the FRL

The part of the report that highlighted the


irregularities in the road projects.

by 3.2 meters, the contractor saved himself Rs. 6.47 crore.


Indeed that money shall be deposited with the state
exchequer. However, the state government has let the
contractor keep the amount and thus caused a loss to the
state exchequer. This loss was highlighted by the CAG
report. The report also faulted the additional payments
of Rs.2.29 crore to the contractor of the sixth package of
the HNSS second phase and Rs. 2.68 crore to the

Emperor of Corruption 259


contractor of the tenth package of the same project.

Road Projects Deplored


The CAG has confirmed the irregularities in road
construction projects. It has pointed out the inordinate
delays in equipment procurement and the execution of
projects. The CAG team has inspected R&B headquarters
and divisional offices at Vizag, Rajahmundry, Nellore,
Gudur, Tirupati, Nandyal, Kurnool and Anantapur. It also
has audited Rs. 813.76 crore worth works in seven
packages, which were taken up with the help of the
World Bank.

The part that talks about the mismanagement


is coal purchases and coal quality.
The portion which stated that the company that
was supposed to pay a fine has got the Department had nothing to do with the development of
mobilization advance. specimen corridors and this entire exercise was a waste
of money.
Rs. 20.05 Crore Undue Corrupt and Flawed Coal Procurement
Benefit to Transstroy The arbitrary coal procurement by the APGenco has
The Chandrababu government had divided the attracted the wrath of the national auditing body. The
Kakinada-Rajahmundry road works worth Rs. 200.54 procurement of coal at inflated prices and the unnece-
crore and gifted them to Transstroy, the company owned ssary closure of thermal power plants had severely
by TDP MP RayapatiSamabasiva Rao, in February 2013. crippled Genco'sfunctioning, held the CAG report.
The works of both packages shall be completed by March Post-bifurcation, Dr. Narla Tata Rao Thermal Power
2016, according to the tender rules. However, Transstroy Station (NTTPS) and the Rayalaseema Thermal Power
had completed only 5% of the work at that time. This Station (RTPC) have come under the management of AP
incompetence should have attracted a fine of Rs. 20.05 government. The plants have a total production capacity
crore, but the company has gone unpunished thanks to of 2,810 MW. In 2011-12, they had produced 22.235
the government's corrupt stand, stated the CAG report. million units of power. However, by 2015-16, power
The auditing body also objected to the government production came down to 19.359 million units, stated the
providing the company with Rs. 30.08 crore as mobil- CAG report.
isation advance. The report also discussed the unreaso- This was due to the AP government's forcible closure
nable hike of estimated costs of Kurnool-Devanakonda, of NTTPS and RTPC, the report held. Due to the low
Pedana-Nuzivid-Vissannapet, Mydukur-Jammalamadugu power production, the power rate per unit went up to Rs.
road projects and excessive delays in the execution of 4.34 from previous Rs.2.94 and both the units have
these projects. suffered a loss of Rs. 675.69 crore. These units couldn't
produce power worth Rs.9251.43 crore due to forcible
Consultant Hired and Then Ignored closures, low-quality coal and boiler leakages, detailed
the CAG report.
The TDP government hired a consultant to streng-
then the R&B Department at the cost of Rs. 5.50 crore. Govt. Condones Poor Quality
However, it has later escalated the fee to Rs. 9.49 crore. The AP government had purchased coal during 2014-
Despite paying such hefty amounts, the government did 16 in a frenzied manner. According to central
not make use of his services, the CAG discovered. The government rules, 70% domestic coal and 30% imported
audit body also pointed out that the Transportation coal shall be used. However, APGenco had imported coal

260 Emperor of Corruption


in disproportionate quantities, most of which was of
poor quality. Due to these imports, coal consumption
has hit the roof. According to the CAG estimate,
Gencoused 86.02 lakh tons of extra coal and as the result
it expenditure was shot up another Rs. 3,179.32 crore. The portion the report that explained how the
Genco has incurred huge losses due to the
Premium for Cheap Coal import of low-quality coal from abroad.
When Mahanadi Coal Limited (MCL) couldn't supply
the coal, the NTPPS was given the option to use the coal 63.5 lakh tons coal at a premium price. It has completely
supplied to Kothagudem Thermal Power Station (KTPS) glossed over any discussion on the provisions of coal
and RamagundamThermal Power Plant (RTPP). However, quality and transportation charges.
the KTPS has gone under the management of Telangana When the CAG has gone through the coal analysis
government post-bifurcation. On the pretext that MCL reports and coal invoices, it could find huge differences
has failed to supply the coal, the NTPPS bought coal in the quality of the grades of coal bought by Genco. The
from Singareni Collieries at a premium price. Without power generating body has lost Rs. 918.61 crore due to
entering into any agreement, the NTPPS has bought its purchase of ungraded (poor quality) coal.

Centre's Krishnapatnam
Estimations Escalated
The AP government took a decision to
establish the DamodaramSanjeevaiah Thermal
Power Plant at Krishnapatnam with a stated
objective to overcome power shortage in the
state. Contract of the project which was worth Rs.
8,432 crore was given to a few contractors.
According to the tender agreement, the first unit
shall be completed by August 2012 and the
The portion which detailed the escalation of the
second unit by February 2013. However, the works
estimated cost of Krishnapatnam Power Station
were not completed due to the delay in
construction of coal conveying system, water and auxiliaries within the deadline, the Genco has
treatment plant and transmission lines. Making collected Rs. 240 crore fine in March 2014.
the most of this delay, the state government However, the same Genco repaid the fine amount
escalated the estimated cost of the project to Rs. to BHEL in July against the rules, stated the CAG
12,630 crore. As BHEL has failed to deliver boilers report.

Emperor of Corruption 261


Severe Debt Burden,
Colossal Mismanagement
2016-2017 CAG Report

Total debt liabilities of the state - Rs. 2,22,845 Crore


Repayments to be done in next 7 years- Rs. 1,50,221 Crore
Rs. 17,231 Crore debt amount was
used for revenue expenditure
The state's economic status is burdened by huge
loans, originally drawn for developmental purposes
but spent on regular expenses and revenue sectors.
The Comptroller General of India (CAG) in its 2016-17
report expressed concern over the state's poor
economic health. If the spending continues at this
pace, there is a danger of the collapse of economy, it
said in the report.
The CAG 2016-2017 report observed that the state
government drew Rs 17,231 crore loans only to spend
on revenue expenses. "Against the 2016-17 financial
year budget estimate revenue spending of Rs
1,14,168 crore, the actual revenue spending is Rs
1,16,215 crore," it said. Of the total revenue spending,
an 85.17% share was spent on revenue earnings
while the remaining funds were drawn from loans. government spent its resources on the day-to-
With the current trend of spending, the state day expenses.
economy is gradually nearing danger, CAG warned. ● In 2016-17, the average capital expenditure of the
● "In the financial year 2016-17, the revenue states was 19.70% while that of AP was 11.48%,
expenses increased by Rs. 20,265 crore from the the lowest.
previous year. If the loan amounts are spent on ● Violating the recommendations of the 14th
revenue expenses without gaining any Finance Commission, the government spent its
permanent assets, the burden of loans would additional resources worth Rs 4,370 crore to
further aggravate in future," it said. other areas rather than investing in permanent
● The CAG observed that the government heavily assets. A burden of Rs. 76,888 crore is to borne by
dependent on loans than its own revenues. the State's budgets in the next five years.
Governments should try and accumulate
resources to achieve a healthy economy. Instead Injustice to Social Sectors
of investing in permanent assets, the state A paltry 4.62% share of the capital expenditure

262 Emperor of Corruption


was spent on activities in social sectors--education, Zilla Parishad loses lakhs of rupees.
health, family welfare, irrigation and sanitation. By
the end of the financial year 2016-17, the burden of Only Rs. 12 lakh recovered from
loans on government amounted to Rs 2,01,314 Rs. 192 crore
crore, which is 2.03 times the revenue incomes and
Of the 12,975
28.79% of the GSDP. The State government is trying
villages, search
to showcase a lowered loan amount.
operations were con-
Added with the loans excluded in the budget
ducted only in 65
worth Rs 11,867 crore and the loans secured
villages in 2016-17,
through guarantees worth Rs 9,665 crore, the total
recovering only Rs. 12
loan amounts to Rs 2,22,845 crore.
lakh recovered from the Rs. 192 crore of corruption.
AP State Disaster Adhering to the guidelines of the 14th Finance
Commission, the centre released Rs. 1,454 crore to
Response and Fire Services the state while it could submit the UCs for only Rs
Department ignored 642 crore.
The government refused to take care of the lands
The government of the Gram, Mandal and Zilla Parishads even as they
failed to take measures were being encroached. In the audit on the 8,653
to modernize and acres belong to seven Zilla Parishads, only 705 acres
strengthen the AP State under 35 Mandal Parishads was recorded. Since the
Disaster Response and local bodies did not maintain records pertaining to
Fire Services their respective lands, there is a danger of them
Department. Only three losing rights over the lands.
of the five
Enforcement Department's
recommendations we
have done were Searches a 'farce'
addressed (partially) by July 2017. Fire stations, In the search operations
equipment and personnel are not in place as per the of the Enforcement
Standing Fire Advisory Council (SFAC). The Department, irregularities
department did not formulate a precautionary plan. were found to the extent of
The government allotted only Rs 475.36 crore while Rs. 70.88 crore. While Rs.
the department sought Rs 1210.17 crore budget. The 10.37 crore for taxation on
proposal to arrange groups of personnel in non-transport vehicles,
Vijayawada, Visakhapatnam and Tirupati were not quarterly tax and the penalty
addressed in ten years. for Rs. 6. 57 crore and Haritha
tax for Rs 1.11 crore were the recorded losses. A
Lands allocated to complete failure in recognizing the unfit vehicles
the NTR Trust was observed.
As many as 98,006 vehicles found without fitness
The allocation of Zilla Parishad lands to the NTR certificates. Of the 20,64,606 cases registered
Trust in East Godavari district was unlawful. The lands between April 2011 and March 2016, an
belonging to the Gram, Mandal and Zilla Parishads overwhelming 5,05,352 of them, amounting to 24%,
can be given on lease only for three years. But, were related to the sound horns. The high-security
violating norms, in September 2015, the NTR Trust number plate project was not implemented. From
was given land for lease for 99 years. The Rs 30 lakh 28,150 vehicle owners, the registration tax was
lease rate was confined to Rs 25,000. Every year, the collected instead of fitness fees. With this, Rs 1.76

Emperor of Corruption 263


crore went down the drain. Not a single case was purchase of buses by utilising the loans from SBI and
registered in the high-security number plate project. HUDCO, the RTC incurred a burden of Rs 4.52 crore
in interests. A loss of Rs. 91 lakh was incurred in the
S.P.Y. Reddy was irregularities in leasing out a 2,460 sq. ft. area in
benefited Rs. 60 crore Vijayawada's Nehru Bus Station.
The state government has haeavily benefited
Nandyal MP S.P.Y. Reddy, who jumped ship to the TDP
Despite Central funds…
from YSRCP. In a notable event, the standards for The state government did not release the Rs
production in SPY Reddy's liquor distillery were 1,972.65 crore allotted by the Centre for various
reduced and the fees not collected. The State schemes in flood relief, transport, highways, the
government is obligated to collect Rs. 129 crore from capital city, backward places in Northern Andhra,
S.P.Y. Reddy, who had accepted in writing that his Rayalaseema and others in 2016-17. While the centre
distillery's production would be 2,000 lakh litres. released Rs. 3,835.03 crore for Swachh Bharat and
Later, he had asked the government to reduce the other requirements, the state government released
production to 1,000 lakh litres. The government order only Rs 2,219.30 crore as its share. Out of the Rs.
for a reduced standard for production is unlawful. The 163.95 crore allocated for mid-day meals scheme,
government lost Rs. 60 crore after the Excise only Rs. 95 crore was utilized. This was sheer absurd
Commissioner withdrew his demand notice. and defies any human logic.

Further Highlights of the Report Hiked Estimated Costs


● Though it was mandatory on part of the state and Unattended Works
government to release the Centre's funds to the Despite increasing the
concerned departments within 15 days, the state project costs of 44 irrigation
government had delayed it for 249 days. Due to schemes by Rs. 27,403.74 crore,
this delay, the state government lost its share of not even a single project was
Rs. 48.96 crore. completed. The initial project
● Seven schemes were not rolled out even after cost was Rs. 49,107.78 crore.
their works were completed and seven more After citing delay due to land acquisition, Court cases
schemes were dropped after some progress. The and change in project designs, the government
exchequer had to bear the loss of Rs. 491 crore. announced it would complete the projects by March
● In Rayampalli in Anantapur district and Vutukuru 2017 while increasing the project cost estimations to
in Guntur district, the dangerous E. coli bacteria Rs 76,511.52 crore.
was found in the drinking water supplied
through government schemes. Skyrocketing Costs Halt Projects
● The state government has failed to take ● Handri-Neeva project
measures to tackle the uranium contents in cost estimation was
groundwater in Nagarjunasagar and Kadapa increased from the initial
regions, even after the centre warned in 2014. Rs. 1,307 crore to Rs.
● The Field Test Kits (FTK) used for testing drinking 4,317 crore. By March
water were abandoned. The kits were procured at 2017, Rs. 3,373.38 crore
an expense of Rs. 1.33 was spent and the second stage project
crore in 2014-15 and estimation was increased to Rs. 7,340.87 crore
2016-17. from an initial estimation of Rs 1,880 crore. An Rs.
5,533.81 was spent, still, the project works
RTC is in Losses showed no progress despite the increased
Due to the delay in spending.

264 Emperor of Corruption


● Even after spending Rs. 1,173.56 crore for
Vamshadhara project by March 2017, the works
did not gain pace. The estimation was increased
from Rs. 933.90 crore to Rs. 1,616.23 crore.
● The Thotapalli project cost estimate was
increased from Rs. 450.23 crore to Rs 774.91
crore. The works were not completed even after
spending Rs. 738.60 crore by March 2017.
● The Pushkara Lift Irrigation Scheme's estimated
cost was increased from Rs. 297.25 crore to Rs. state, there is a dearth of teachers in 1,014 primary
674.52 crore. The works were not completed and 37 upper primary schools.
even after spending Rs 681.76 crore by March As to the statistics of school dropouts, there was a
2017. stark difference between the figures of Sarva Siksha
Abhiyan and Education Department. Due to the
Making Lofty Claims unavailability of the child tracking system, there is no
In 2016-17, the Andhra Pradesh State Irrigation proper record of the drop out children.
Development Corporation (APSIDC) gave
administrative permission for stabilization of 1.55 Some More Findings of CAG
lakh acre ayacut and modernization of 181 lift ● Of the Rs. 312.64 crore deposited in the account
irrigation projects. The corporation had declared that of the state water and sanitation program project
it would complete the works by the end of year. Only director in 2016-17, Rs. 250 crore was spent by
11 schemes under SC Sub Plan and 17 schemes under March 2017 and Rs. 62.64 crore was unused.
ST Sub Plan were completed and stabilise only 1,749 However, it is learnt that these sums were
acres. transferred to other bank accounts before
transferring to the beneficiaries through
Fully Fudged Estimations electronic fund management system (EFMS)
The Neeru-Chettu Programme taken up by the accounts.
state government for water conservation of water ● While some of the departments were over-
resources was knocked out by the fudged numbers. A funded despite having no requirement, other
total of Rs. 1,242 crore was allocated for the program departments spent money beyond their
in two stages. One can easily make out that the allocations. While Rs. 21,967 crore surplus was
estimates were fudged from the fact that the shown under 35 accounts and Rs. 1,686 crore was
estimated costs increased eight times in the second over-spent under five accounts. In total, an Rs.
stage. 20,281 surplus was shown and this amount was
The state government has increased the not spent.
estimated costs of 17 projects under the micro ● The AP government has allocated Rs. 1,186.64
irrigation category from Rs. 95.31 crore to Rs. 158.59 crore as grant for the housing sector in 2016-17.
crore. It spent a total of Rs. 86.43 crore. Despite the However, it has spent only Rs. 456.95 crore and
expenditure, it could not complete a single project by the remaining Rs. 729.69 crore was kept unspent.
end of March 2018. Finally, Rs. 670.33 crore was unspent as there was
a shortage of requests from the unit offices and
Failing the Education System not filling the vacancies.
● In 2011-12 and 2015-16, only Rs. 1469.75 crore
In Andhra Pradesh, a total of 5,443 schools were
was spent out of the allocated Rs. 2,017.08 crore.
closed down between 2013-14 and 2016-17. Out of
The state government did not provide reasons as
them, 3,361 were government schools, 203 were
not non-spending of funds of the remaining
aided schools and 1,880 were private schools. In the
accounts.

Emperor of Corruption 265


Appalling Governance in AP!
Fumihiko Maki's Blistering Attack... Special Article in Architectural Digest
Excessive Political Intervention...Lack of Transparency... No Ease of Doing Business... It's Business as Usual!

Governance conditions in Andhra Pradesh are processes were in place, the jury disappeared, and
at their worst, said Fumihiko Maki, the Chairman the jury report was never released to the public. The
of Maki & Associates, an award-winning Japanese Andhra Pradesh Capital Region Development
architecture company, in a special article written Authority (which administers the project on behalf
for April 2017 edition of Architectural Digest (AD). of the government) threw up its hands to follow
The AD is considered the Forbes of architecture. orders from above-while their employees
Here are a few highlights from Maki's article: empathised with us, privately of course, over how
"At the end of 2011, Maki and Associates was unfairly Maki and Associates was being treated.
announced as the winner of an international Most shockingly, we were never given the chance to
competition for designing the Bihar Museum in show competition revisions to the government,
central Patna. At the end of 2016, the museum was racing despite being asked for these revisions by the chief
towards completion. At around the same time, we endured minister, N Chandrababu Naidu, himself."
an unjustified removal as the master architects for the Cleary A Bad Standard
Amaravati Capital Complex in Andhra Pradesh-despite
"On 24 October, Maki and Associates was officially
winning an international competition for the same in March
terminated for reasons that are demonstrably false. A new
2016. These two experiences offer contrasting insights and
RFQ ('Request for Quotation': a standard business process
lessons about the Indian architectural profession as it faces
used to invite participants in a bidding process) was
new challenges to its identity within the context of global
launched on 25 October-the very next day!-and in early
practices." "From our distant perch in Japan, it seems to us
December, Foster and Partners of London, with Architect
that the reputations of these two Indian states are belied by
Hafeez Contractor of Mumbai, were selected. The
our experiences in each. Nobody thinks that Bihar is a good
announcement of this team has been decidedly muted, and
place to work, while Andhra Pradesh has posters
no new designs have been presented to the public. It is
throughout international airports describing it as the most
unclear if designs even exist, though it is known that the
"business-friendly" state in the country. In fact, the Bihar
winning team spent a good deal of time in Amaravati prior
government has shown sophistication and intelligence as
to the RFQ. Having Foster and Contractor do this work was
an architectural client, while the Andhra Pradesh
clearly a pre-set priority for the government, though it
government has revealed mostly confusion and
remains to be seen if-with over 1,000 employees, 11
inconsistency. Our perspective on these places and their
different offices, and hundreds of projects scattered across
politics may be somewhat limited, but we can definitely
the globe-Amaravati will remain a priority for Foster and
state that if the Bihar government had acted like their
Partners. According to the latest news, the chief minister
counterparts in Andhra Pradesh, the 25,000-square-metre
engaged Telugu film director SS Rajamouli and asked
Bihar Museum would not be opening this year. In Andhra
Foster's representatives to ?discuss the design with him. So
Pradesh, "business-friendly" seems much closer to
the "revolving door" we experienced in Andhra Pradesh
"business as usual" in India."
seems likely to continue. Foster, an architect of great talent
CRDA Not Independent! and discipline, will hopefully ignore this noise and keep the
"At Amaravati, the experience was a complete contrast. work under his own control-assuming he remains involved
The competition itself was well organised, and the in the design."
international jury was chaired by leading architects, design Only Time Will Tell
practitioners, and pedagogues like Christopher Charles "Five years is at once a short and a long period, and our
Benninger, KT Ravindran, Erwin Viray, SühaÖzkan, Rajeev contrasting experiences with these two Indian state
Sethi, and KeshavVarma, the ex-municipal commissioner of governments indicate that both hope and caution are in
Ahmedabad. They provided objective results based on order. There is hope, from our experience in Bihar, that
stated design criteria, and avoided suspect selection government projects can be well managed; but from our
processes. A full day was dedicated to each team's experience in Andhra Pradesh, we also see the possibility of
presentation, and the participants were fairly chaos and diminishing returns on substantial investments.
compensated. But once the competition ended, there were This is perhaps not a bad lesson for us, but clearly not the
no more checks and balances, just a farcical revolving door best message for a vibrant and growing nation like India to
of ever-changing opinions to consider. No clear approval send. The bar, in our opinion, can be set much higher."

266 Emperor of Corruption

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