BRS exposes massive scam in PM Ekta Mall tender, seeks cancellation and probe

The BRS has alleged irregularities in the tender process for the proposed PM Ekta Mall at Raidurg and demanded its cancellation and an independent probe. K T Rama Rao also sought a halt to further Central funds until the investigation is completed

Hyderabad: Terming the tender process for the proposed PM Ekta (Unity) Mall at Raidurg a massive multi-crore scam, the Bharat Rashtra Samithi demanded immediate cancellation of the tender, stoppage of further Central funds and an independent probe into the entire transaction. The party alleged that the Congress government in Telangana tilted tender conditions in favour of a private developer that could result in disproportionate benefits at the cost of public resources and urged the Centre to intervene before any irreversible decisions were taken.

The proposed project has an estimated cost of Rs 2,059.81 crore, excluding the value of land, and has received around Rs 202 crore in Central assistance. It is proposed on about 6.3 acres of prime land at Raidurg, with nearly 27 lakh square feet of built-up area.

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In a strongly worded letter to union Finance Minister Nirmala Sitharaman on Monday, the BRS working president K T Rama Rao raised serious concerns over the distribution of commercial space. While the government’s minimum share is around nine lakh square feet, the private developer is entitled to a minimum of 18 lakh square feet, which is twice the government’s minimum built-up area.

He questioned the rationale behind granting such extensive commercial rights to a private developer when the project involves valuable public land and substantial Central financial assistance.

The selected consortium comprises Vamsiram Builders & Developers Pvt. Ltd. as the lead member and Aparna Infrahousing Pvt. Ltd. as the partner. Rama Rao stated that the consortium offered an additional 18,000 square feet of Grade-A commercial office space over the government’s minimum entitlement, taking its total built-up area to about 9.18 lakh square feet. However, the private developer retains a minimum entitlement of 18 lakh square feet, apart from the possibility of additional area through future planning efficiencies or permissible FSI.

The BRS working president also questioned the financial model under which the Rs 200 crore interest-free loan sanctioned under the Special Assistance to States for Capital Investment (SASCI) scheme is proposed to be routed through Telangana Trade Promotion Corporation Limited to the selected developer on a back-to-back basis.

Rama Rao said the tender framework permitted expenditure already incurred on project preparation, consultancy, surveys, approvals and site preparation to be adjusted from the funds. He emphasised that the arrangement should be examined through an independent scrutiny before any further public money was released.

“Public assets of Telangana cannot be used for private bargaining, and public money cannot become the foundation for private enrichment,” he said.

He demanded scrutiny of the land valuation, project cost, financial model, tender conditions, bid evaluation, government’s share, private developer’s commercial rights and utilisation of Central funds. He also sought examination of whether the tender conditions or financial structure resulted in any undue or unlawful benefit to a private entity.

The former Minister called for the DPR, financial model, land valuation, tender documents and bid evaluation records to be made available in public domain. He also sought an independent examination by appropriate audit, vigilance and investigative agencies, including the CAG wherever applicable.

He questioned the Centre’s response to earlier BRS complaints alleging irregularities in AMRUT tenders, coal-related issues and other matters, stating meaningful action had not followed despite the submission of details and evidence.

Rama Rao urged the Centre to treat the PM Ekta Mall issue as a test of its commitment to accountability and demanded that no further funds be released until an independent investigation is completed. He said the BRS would continue to pursue the alleged misuse of public money and assets and place available evidence before the appropriate authorities until responsibility was fixed under law.