Hyderabad (Telangana) [India], August 10 : BRS Working President KT Rama Rao (KTR) has alleged serious financial irregularities and a massive scam in the tender process for the proposed PM Ekta (Unity) Mall at Raidurg, Hyderabad, and demanded the immediate cancellation of the tender and an independent investigation into the entire transaction.
In a strongly worded letter to Union Finance Minister Nirmala Sitharaman, KTR urged the Centre to immediately stop further release of funds for the project and intervene before any irreversible decisions are taken.
He alleged that the Congress government in Telangana, headed by Chief Minister Revanth Reddy, had framed questionable tender conditions that could result in disproportionate benefits to a private developer at the cost of public resources, according to a release.
KTR said the proposed project has an estimated cost of approximately Rs 2,059.81 crore, excluding the value of land, and has received around Rs 202 crore in Central assistance. The project is proposed on approximately 6.30 acres of prime land at Raidurg, with around 27 lakh square feet of built-up area.
The biggest concern, KTR said, relates to the distribution of commercial space. While the Government's minimum share in the project is only around 9 lakh square feet, the private developer is entitled to a minimum of 18 lakh square feet.
KTR questioned how a private developer could receive at least twice the Government's minimum built-up area in a project being developed on valuable public land with substantial Central financial assistance, the release said.
The selected developer consortium comprises Vamsiram Builders & Developers Pvt. Ltd. as the Lead Member and Aparna Infrahousing Pvt. Ltd. as the partner. According to KTR, the consortium offered an additional 18,000 square feet of Grade-A commercial office space over the minimum Government entitlement, taking the Government's total built-up area to approximately 9.18 lakh square feet.
However, the private developer continues to have a minimum entitlement of 18 lakh square feet, besides the possibility of additional area arising through future planning efficiencies or permissible FSI.
KTR demanded that the Congress government explain why such extensive commercial rights have been provided to a private developer when the project involves valuable public land and Central financial assistance. He questioned whether Telangana is receiving adequate value in return for the public resources being committed to the project, the release said.
KTR also raised serious questions over the project's financial model. He pointed out that the ₹200 crore interest-free loan sanctioned under the Special Assistance to States for Capital Investment (SASCI) scheme for the PM Unity Mall is proposed to be routed through the Telangana Trade Promotion Corporation Limited (TGTPC) to the selected developer on a back-to-back basis.
He further alleged that the tender framework allows expenditure already incurred on project preparation, consultancy, surveys, approvals and site preparation to be adjusted from the funds. KTR said such an arrangement requires independent scrutiny before any further public money is released.
According to a release, KTR said that the Congress government cannot use the PM Ekta Mall brand or Central assistance as a shield for an opaque or questionable transaction. A prestigious project name, he said, cannot by itself make a financial arrangement transparent. Where public land, public money and valuable commercial rights are involved, complete transparency and independent investigation are essential.
KTR also questioned the Centre's response to earlier complaints submitted by the BRS regarding alleged irregularities and corruption under the Congress government. He recalled that the BRS had raised allegations relating to AMRUT tenders, coal-related issues and other matters, and said that despite providing details and evidence to the concerned authorities, there had been no meaningful action.
He further pointed out that the Prime Minister and several Union Ministers have publicly spoken about alleged corruption and the functioning of the Congress government in Telangana. However, he questioned why concrete action had not followed the complaints submitted by the BRS, the release said.
Against this backdrop, KTR urged the Centre to treat the PM Ekta Mall issue as an opportunity to demonstrate its commitment to accountability. He demanded that the existing tender be cancelled immediately and no further Central funds be released until an independent investigation is completed.
KTR said the investigation should examine the land valuation, project cost, financial model, tender conditions, bid evaluation, Government's share, private developer's commercial rights and utilisation of Central funds. It should also determine whether the tender conditions or financial structure resulted in any undue or unlawful benefit to a private entity.
The release further said that KTR demanded that the complete DPR, financial model, land valuation, tender documents and bid evaluation records be made available for public scrutiny. He also insisted that the investigation should not be restricted to the same State Government machinery that designed and implemented the project.
KTR called for an independent examination by appropriate audit, vigilance and investigative agencies, including the CAG wherever applicable, so that the facts are established and responsibility is fixed.
"Public assets of Telangana cannot be used for private bargaining, and public money cannot become the foundation for private enrichment," KTR said. He demanded that the Centre immediately stop the release of funds, cancel the tender and order an independent investigation.
KTR said the BRS would continue to fight against the alleged misuse of public money and public assets and would place all available evidence before the appropriate authorities until those responsible are held accountable under law.