Congress govts in Karnataka, Telangana reel under nepotism scams

The Congress high command is also in a spot of bother over allegations against the Chief Ministers A Revanth Reddy and Siddaramaiah

Hyderabad: The Congress governments in both Karnataka and Telangana are facing the heat over scams emerging out of nepotism. Apart from leaders in the State units, the Congress high command is also now in a spot of bother ever since the allegations surfaced against both the Chief Ministers in these States, A Revanth Reddy and Siddaramaiah.

After filing an FIR against Karnataka Chief Minister Siddaramaiah, his wife and others, Mysuru Lok Ayukta has commenced its probe into the case linked to the Mysuru Urban Development Authority (MUDA) scam. Similarly, Chief Minister A Revanth Reddy is in the news for signing agreements with companies that were floated by his brothers and relatives apart from allegedly gifting AMRUT 2.0 tenders to a relative’s company.

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In Karnataka, the Mysuru Lok Ayukta on Tuesday launched a probe into the MUDA land allotment scam. Along with a team of surveyors and MUDA officers, the Lok Ayukta officials visited the 3.2 acres of land at Kesare that was allegedly acquired by the Chief Minister’s brother-in-law and gifted to his wife Parvathi. After MUDA acquired the land, Parvathi sought compensation and was subsequently allocated 14 plots. These plots were substantially more valuable than the original piece of land, according to reports.

After the Enforcement Directorate also on Monday booked the Chief Minister, his wife and others in a money laundering case linked to the MUDA scam, Parvathi wrote to MUDA on surrendering the 14 plots allotted to her. However, the Chief Minister, while addressing media persons in Bengaluru on Tuesday, claimed he had no role in the MUDA scam and insisted that he would not resign.

Telangana government too under scanner

Even as this controversy was rocking the Congress government in Karnataka, the Bharat Rashtra Samithi (BRS) in Telangana has exposed quite a few irregularities and scams allegedly involving Chief Minister A Revanth Reddy’s brothers and relatives. The BRS had first demanded an explanation from the State government for signing a Rs.1,000 crore MoU with Swachh Bio, just 16 days after the company was floated on July 21. The catch here was that the company was floated with the Chief Minister’s brother Jagadeeshwar Reddy Anumula as one of its directors.

BRS leader Manne Krishank said Revanth Reddy had misused the US visit to benefit his brothers from the Rs.1,000 crore Swachh Bio deal. Apart from the Chief Minister’s brother Jagadeeswhar Reddy, another director was Vedavalli Sivananda Reddy, who runs a bar in Uttar Pradesh, he had charged. Former Chennur MLA Balka Suman had come out with documents showing that the Chief Minister’s brothers had floated four major firms within a span of three months. Anumula Tirupathi Reddy established Urban Prism Infra LLP, Jagadeeshwar Reddy set up Swachh Biogreen and Krishna Reddy floated two companies – R9 constructions and RNine Properties, he said, raising doubts over the timing of establishment of these companies.

It was the turn of BRS working president KT Rama Rao then, when he revealed that the Chief Minister and his family was involved in a Rs.8,888 crore scam related to the AMRUT 2.0 scheme. Within three months of assuming office, the Chief Minister had orchestrated a fraud by misusing his authority, Rama Rao said.

“The CM awarded contracts worth Rs.1,137 crore to Shodha Infrastructure Ltd, owned by Soodhini Srujan Reddy, Revanth Reddy’s brother-in-law, despite the company reporting a mere Rs.2 crore in profits” Rama Rao said, also pointing out that Indian Hume Pipe Ltd, a publicly listed company, was coerced into forming a joint venture with Shodha Infrastructure. While Indian Hume Pipe was assigned just 20 percent of the project work, Shodha Infrastructure received 80 percent, he said and demanded a Central Vigilance Commission probe.

In another instance of nepotism, though many houses constructed in lake areas and belonging to the poor and middle class people were demolished in different areas, the Chief Minister’s elder brother Tirupati Reddy’s house, which is under the Durgam Cheruvu FTL/buffer zone, was spared. While other structures were demolished, some without prior notice and some hours within serving notices, Tirupati Reddy was given a month’s time to clear the structure. He managed to approach court and get a stay order and his house is safe.