YSRC MLAs seek CBI probe against Naidu

Following is the full text of the memorandum submitted to Governor Narasimhan on Saturday by the YSRCP MLAs seeking directions to Government to probe allegations of corruption against TDP Chief Chandrababu Naidu.

Dt:21stSeptember 2013

Sri E S L Narasimhan garu,

His Excellency, the
Governor of

Andhra Pradesh,                                                 



Your Excellency                                                         

During the nine year term
of Mr Chandrababu Naidu as Chief Minister of Andhra Pradesh, the state was
rocked by scandal a day

The CAG censured him for
the wilful goof up in awarding short gestation power projects, BPL power
project and in the tariffs given to Spectrum and GVK, which were 200% of that
of the state owned APGPCL. Whereas APGPCL implemented its 174 MW combined cycle
gas based power project at Rs 2.70 cr per MW, in the same year, Mr Naidu
allowed Rs 4.50 cr per MW to GVK and Spectrum.

There were large scale of
complaints of bribery against Mr Naidu in the
allotment of various
port projects, privatization of Kakinada Sea Port, the international airport at
, the Hi-Tech city project, the IMG project, the
EMAAR project, the Konaseema power project and many more.

Naidu gave away the prestigious Hi-Tech city project on a limited invitation
basis (without global competitive bids) to his favourite company L &T for
11% equity share to Government, which contributed prime land at free of cost
for development of commercial complex by L & T, when that the going
practice in Hyderabad and other cities in India for the share to be given to
the owner of the property by the developer was 50%.  What a brazen act!

most brazen acts of corruption during the TDP regime were the allotment of
large extents of lands at less than 5% of the market value to IMG Bharath.  This is one of the biggest scandals in India.
There was a clear design to grab large extents of prime land in Hyderabad at
throw away price in the name of promoting sports. The care taker TDP
Government, after the dissolution of the House in 2003, allotted two bits of
land totalling in all to  850 acres of
prime land to a hoax company IMG promoted by a close associate of Mr Naidu viz Mr Ahobila Rao from his native
Chittoordistrict without even taking
the matter to the Cabinet.  According to
the MoU, 400 Acres of the lands were agreed to be transferred to IMG and these
were part of the University of Hyderabad Campus at Rs 50,000 per acre when the
market price at that time was Rs 3 cr per acre! 
The other block of land was an extent of 450 Acres near the Shamshabad
International Airport which has now become very prime and valuable after the commencement
of International Airport.  

This was sold
at Rs. 25,000/- per acre at the time of Registration and another Rs 25,000/- to
be paid after the commencement of International Airport on the condition that
the same may be spent for the development of the roads and infrastructure to
the site. The market price of the said land was about Rs. 1 Crore per acre.

story is that the state government genuinely believed that IMG Bharath was a
genuine subsidiary of the US Company, while the fact remains that IMG has
falsely claimed to be the subsidiary of IMG Academies, Florida, USA, an expert
Sports School. Except in the note file, there was no record of any deliberations
or dialogue between the Government and kthe Florida Company. The IMG had just a
paid up share capital of Rs one lakh, of which 99% is held by Mr Ahobila Rao
and the balance 1% is held by his brother Mr Prabhakara Rao, who incidentally
was favoured with yet another highly questionable Kuppam Israel drip irrigation
project by Mr Naidu. 

Not satisfied with this, as many as eight prestigious
sports stadia constructed with Government money was also leased to this sham
company for 45 years on the understanding that Government should pay Rs 2.5 cr
per annum for five years for maintenance, with a further condition that during
the currency of the said lease period of 45 years, the IMG is entitled to buy
the said stadia at a price to be determined by IMG itself!!! This is in addition
to the Government agreeing to providing water and power at free of cost for the
first three years besides abolishing the entertainment tax for a ten years

This entire transaction is widely believed to be a benami transaction
for bigwigs in the TDP Government. Surprisingly, the CBI expressed inability to
probe this case citing lack of manpower and other resources, whereas they could
put together 28 teams of CBI to raid houses of not only Mr Jaganmohan Reddy but
also of all his investors within days of filing FIR!

the TDP Government allotted 535 acres of prime land in Hyderabad to EMAAR at Rs
28 lakhs per acre in the year 2001 when that Smt Bhuvaneswari sold a land in
near vicinity of the lands allotted to EMAAR at Rs 100 lakhs per acre in 1998. It
would have been a different issue had the Government sold the land at such
highly subsidized rates if only it was for setting up a massive manufacturing
industry like BHEL which would generate huge employment besides contributing
revenues to the state or for weaker section housing. On the contrary, this
entire project was for construction of lavish villas and golf course for super
rich persons who can and should afford atleast the market price. Why should this
be subsidized? 

The answer is plain and simple---Mr Naidu had personal
relationship with the promoter of the project. Do we need any more proof for
this than the generosity of Mr Naidu who offered 500 acres of land to EMAAR
when that the promoters wanted just 250 acres for the project?  Like Hi Tech project, even this project was
not globally tendered but was taken up on limited invitation basis to allot the
project to the predetermined EMAAR, which was the lone applicant!! Despite this
unimpeachable evidence of complicity of Mr Naidu, the CBI which conducted an
elaborate and in depth probe against EMAAR refused even to symbolically investigate
Mr Naidu as to how his Government gifted away such a prime land valued at Rs 3
crore per acre at Rs 28 lakhs per acre. The loss to the exchequer was of the
order of Rs 1200 cr.

were many more scams like the Yeleru scam, the Counterfeit note scam of Mr
Ramakrishna Goud along with other TDP functionaries, the stamp scam and not to
speak of the hobnobbing of Mr Naidu himself with the biggest fraudster Mr Kola

CPM released a charge sheet against the TDP Government bringing out elaborately
various scams in the TDP Government. The BJP has framed 100 charges against Mr
Naidu in 1998 and promised to people that the first thing they would do if they
were voted to power in Centre was to arrest Mr Naidu. Unfortunately, the BJP
needed Mr Naidu’s support for forming their government at the centre and they
conveniently forgot the charge sheet and started adoring him as he was helping
them to be in power.

Chandrababu Naidu seems to be running the same luck even now. The Congress
party in the State needed his 90 odd MLAs support for continuing in power
despite all their non-governance and misrule imposing a huge burden on the
people of the state. So, despite our complaining several times to order probe
into the aforesaid allegations, they have been turning blind eye.

is now helping the Congress Government to divide Andhra Pradesh in the fond
hope of minimize the influence of YSR Congress Party atleast in Telangana. A
friend in need is a friend indeed! Thanks to this opportunistic alliance, no
probe is ordered against him. Emboldened by the fact that the state government
will anyway not probe any of these scandals and his disproportionate assets, Mr
Naidu, the champion of corruption and immorality has now turned a crusader
against corruption. He is now toying with the idea of organizing a national
seminar against corruption on 2nd October 2013 at New Delhi.

It is famously said that
he who comes to equity must come with
clean hands.’
 As Mr Naidu has become
a crusader against corruption in public life and because he does not believe in
equity, we request Your Excellency to
kindly direct the State Government to order a CBI probe into the misdeeds during
the nine year TDP regime with special focus on EMAAR and IMG.

 With Regards

Yours faithfully


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