Bharat Rashtra Samithi working president K T Rama Rao on Friday alleged a Rs 10,000 crore financial fraud linked to the 400-acre Kancha Gachibowli land that is at the centre of a controversy in Telangana and wrote to the Reserve Bank of India, the Serious Fraud Investigation Office, the Securities and Exchange Board of India, the Central Vigilance Commission and the Central Bureau of Investigation, demanding an investigation.
Addressing a press conference, Rao accused Chief Minister A Revanth Reddy as the “architect, executor, and key player” behind the contentious land deal and urged Prime Minister Narendra Modi and Union Finance Minister Nirmala sitharaman to order a comprehensive investigation to prove their commitment to transparency.
Alleging that the state government manipulated the 400 acres of forest land adjacent to the University of Hyderabad to secure a Rs 10,000 crore loan from banks, Rao said the property was illegally pledged without verifying ownership, conducting environmental assessments, or obtaining forest department approvals.
The Telangana Industrial Infrastructure Corporation (TGIIC), he alleged, mortgaged the land despite lacking legal title, with no sale deed, mutation, or alienation process to establish ownership.
Stating that the valuation of the 400 acres was initially pegged at Rs 30,000 crore at Rs 75 crore per acre and then brought down to Rs 52 crore per acre and Rs 41.6 crore per acre in a matter of months, Rao questioned the rationale behind the reduction, alleging it was a deliberate move to facilitate the transfer of the land to Reddy’s associates at a fraction of the inflated value.
KTR cited the Stamps and Registration Department and said that the market value in the Kancha-Gachibowli area is Rs 26,900 per square yard, translating to a total value of Rs 5,239.84 crore for 400 acres. “How can land worth Rs 5,000 crore be inflated to Rs 30,000 crore and then conveniently reduced to Rs 16,640 crore? This is a textbook case of financial manipulation,” he charged.
He also accused a multinational bank of gross negligence in approving the Rs 10,000 crore loan without verifying land ownership or conducting basic due diligence.
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He claimed that a BJP MP’s involvement was the sole reason the private bank approved the loan, despite the land’s disputed status. “This BJP MP will be named soon. The state government has promised undue benefits to him through this deal,” KTR said, warning that the central government’s inaction would confirm a BJP-Congress nexus. He said TGIIC mortgaged land it did not legally own, and the bank approved the loan without verifying documents, calling it a “fraudulent act” that warrants investigation.
Rao alleged that property that “does not belong to TGIIC” was pledged to a broker, who went to the bank, saying, “this is a land valued at Rs 75 crore per acre whereas the actual value is something and ownership is something else, therein lies the fraud…”. “Once we start the investigation, we will find more details,” he added.
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