Hyderabad (Telangana) [India], February 4 : Bharat Rashtra Samithi (BRS) Working President KT Rama Rao (KTR) alleged that Telangana Chief Minister Revanth Reddy is once again misusing thousands of crores of public money and diverting it to his benami company.
Speaking to ANI, KTR stated that the company KLSR functions as a front entity for the Chief Minister and presented what he described as documentary evidence to support his claims.
KTR asserted that KLSR had operated as a benami company for Revanth Reddy from the outset and that the links between the Chief Minister and the firm were well known.
He said the Supreme Court had recently issued notices to the Telangana government seeking clarification on large-scale financial transactions continuing within the company despite its insolvency proceedings, as well as on allegations of attempts to influence judicial processes.
According to KTR, fearing that his benami operations would be exposed, Revanth Reddy orchestrated what he termed a political drama from Davos under the guise of forming a Special Investigation Team (SIT) in order to divert public attention.
KTR demanded that an immediate investigation be launched into the company and that all operations of the insolvent firm be halted until the probe is completed. He further called for the company to be blacklisted and for all contracts allegedly secured without eligibility to be cancelled.
KTR recalled that enforcement agencies conducted raids on KLSR in 2018 and that the media at the time reported links between the company and Revanth Reddy, then the PCC president. Despite the firm subsequently entering insolvency proceedings before the National Company Law Tribunal (NCLT), KTR alleged that, after assuming office, the Chief Minister facilitated the award of major government contracts to the company.
He further stated that Income-Tax raids were conducted on Revanth Reddy's relatives on September 27, 2018, during which transactions between Sai Mourya Estates and KLSR were uncovered.
According to him, funds from Bhopal Infra and Sai Mourya were traced to accounts linked to the Chief Minister's relatives.
KTR said that in July 2023, disputes between KLSR and another company led both parties to approach the National Company Law Tribunal. Subsequently, KLSR filed a Corporate Insolvency Resolution Petition, after which financial transactions were restricted.
He alleged that attempts were later made to exert pressure on an NCLT judge through a senior judicial intermediary, prompting the judge to recuse himself from the case after disclosing the matter.
KTR claimed that Revanth Reddy was the key figure working behind the scenes to secure favourable rulings for the company, citing the firm's alleged financial dealings with Sai Mourya, a company linked to the Chief Minister's brother-in-law.
He alleged that funds were routed through KLSR to acquire large tracts of land and reiterated that enforcement agencies had previously recovered evidence during their investigations.
KTR alleged that despite its insolvency, KLSR secured government projects worth nearly Rs 6,000 crore under the present administration, including works related to AMRUT Scheme, Jal Jeevan Mission, Young India Residential Schools, Telangana irrigation projects, and Road development projects.
He demanded that the Chief Minister explain how such a financially distressed company was awarded contracts of this magnitude, particularly in the Municipal Administration Department and in the Chief Minister's own constituency.
KTR questioned how an insolvent firm from 2023 onwards could be awarded government contracts between 2024 and 2026, and noted that the Supreme Court had raised concerns about the company's ability to furnish massive bank guarantees despite allegedly lacking even Rs 15 lakh to pay employee salaries.
He said, "The apex court directed both the Centre and the State to investigate the inflow of hundreds of crores into the company and examine attempts to influence judicial proceedings."
"The Supreme Court also issued notices seeking investigations by the Central Bureau of Investigation (CBI), the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED)," KTR stated.
He alleged that in order to divert attention from these notices, Revanth Reddy orchestrated a political spectacle using SIT notices relating to telephone tapping cases involving BRS leaders, including Harish Rao, Santosh Rao and party chief K. Chandrashekar Rao.
KTR said the Chief Minister personally issued instructions from Davos to run what he called a distraction campaign.
KTR questioned why the Chief Minister had allegedly concealed the Supreme Court notices calling for an investigation into the Rs 6,000-crore contracts and financial irregularities involving KLSR.
He demanded clarity on whether the Chief Minister's interest in the insolvent company stemmed from commissions, a partnership, the laundering of illegal wealth, or direct ownership.
KTR urged the Telangana government to immediately allow an impartial CBI-led probe as directed by the Supreme Court. Until then, he demanded the cancellation of all contracts awarded to KLSR, suspension of ongoing works, blacklisting of the company from future tenders, and a comprehensive investigation by ED and SFIO.
He also called on Union Minister G. Kishan Reddy to pressure the Centre to ensure an impartial inquiry, stating that if the BJP was not shielding Revanth Reddy, it must demonstrate its sincerity by supporting the probe.
KTR concluded by asserting, "The matter involved corruption, criminal conspiracy, abuse of power and alleged money laundering, and demanded immediate action from both the Centre and the State governments." He said authorities must halt all operations of the KLSR company until a full investigation is completed.