Cancel KLSR Infra contracts, says BRS; alleges Revanth Reddy govt favouring ‘benami firm’
The BRS demanded that the Telangana government immediately cancel all contracts awarded to KLSR Infra, alleging the company is insolvent and linked to Chief Minister Revanth Reddy. The party also sought ED and CBI probes into the firm’s ownership and contracts
Hyderabad: Bharat Rashtra Samithi (BRS) official spokesperson Manne Krishank on Wednesday demanded the immediate cancellation of all government contracts awarded to KLSR Infra, a Nellore-based infrastructure company facing multiple legal challenges and longstanding allegations of being a benami entity linked to Chief Minister A Revanth Reddy.
Addressing a news conference at Telangana Bhavan, he said the Telangana High Court had directed the Central Bureau of Investigation (CBI) to file a written response on the probe into the firm, while the National Company Law Appellate Tribunal (NCLAT) had ordered a freeze on its financial activities. Highlighting apparent contradictions in the government’s dealings with KLSR Infra, which he called a “financially bankrupt” entity mired in insolvency proceedings, he alleged that despite serious allegations that KLSR Infra was the benami company of Revanth Reddy, the Congress government had awarded contracts worth Rs 6,000 crore to this firm.
He questioned the rationale behind entrusting massive public funds to a company that, on October 15, borrowed a mere Rs 15 lakh from the Indian Bank to meet salary obligations. The controversy has deepened following complaints from several small contractors who alleged payment defaults by KLSR Infra. When the CBI reportedly failed to act swiftly, these contractors approached the Telangana High Court, prompting the court to issue clear directions to the CBI for a written submission on the investigation.
During an NCLAT hearing in Delhi, a two-judge bench mandated that KLSR Infra “must immediately halt all economic transactions”, citing ongoing insolvency concerns. Yet the Revanth Reddy-led government has continued approving new contracts worth thousands of crores for the same company, raising questions about accountability and transparency, Krishank said.
Detailing a series of high-value contracts allegedly entrusted to KLSR Infra by the Congress government, emphasising their scale and the firm’s precarious financial state, he said the list included Jangaon – Komuravelli works (Rs 168 crore), Suryapet -Paleru reservoir (Rs 191 crore), Mahabubnagar – Vikarabad road (Rs 116 crore), Kodad – Rajiv Gandhi Lift Irrigation: Rs 319 crore, Parigi – Shadnagar road ( Rs 185 crore) and Kodangal Veterinary College (Rs 145 crore). Additionally, KLSR Infra has secured contracts for the Young India School projects, with ongoing works valued at Rs 2,500 crore, he said.
When the Chief Minister served as Telangana Pradesh Congress Committee (TPCC) president, he reportedly used a luxury vehicle with registration number TS 07 FF 0009, allegedly gifted by the company. This connection, Krishank argued, further strengthened the suspicion about his benami links. He also recalled 2018 raids by the Income Tax Department on properties linked to Revanth Reddy and his family, which uncovered alleged shady investments and benami transactions involving KLSR Infratech Private Ltd, among other firms.
Although no charges were filed at the time, the BRS has renewed calls for a fresh ED probe into these ties. He referenced a recent NCLAT recusal incident, where a judicial member alleged pressure from a “member of the higher judiciary” to favour KLSR Infra in an insolvency appeal. The Supreme Court has since ordered an inquiry into the matter, with the Chief Justice too confirming the claims, Krishank said.
KLSR Infra, in its defence during those proceedings, claimed to be a “profit-making company with a turnover of over Rs 300 crore for the past five years”, but court records indicate outstanding dues exceeding Rs 2.88 crore to a creditor, leading to the initiation of Corporate Insolvency Resolution Process (CIRP) by the National Company Law Tribunal (NCLT) in 2023.
BRS demanded immediate cancellation of all contracts awarded to KLSR Infra, citing the ongoing judicial probes and the company’s frozen financial status. No new contracts should be given until the CBI investigation is completed and NCLAT delivers its final order, to prevent further misuse of public funds, he said, also slamming the central agencies for their inaction, questioning as to why Central and Telangana BJP leaders were protecting Revanth Reddy.
“Why is the BJP silent despite such massive allegations? Why are CBI, ED, and Income Tax not acting in this multi-crore scam?” he asked, accusing the BJP of a tacit alliance with the Congress.
“The same agencies that target opposition leaders seem to turn a blind eye when it’s the ruling party’s turn,” he added. BRS leaders have vowed to pursue legal recourse, including fresh complaints to the ED, while demanding a white paper on all infrastructure contracts awarded since the Congress assumed power in December 2023.
