Harish Rao seeks SEBI probe into Rs 10,000 crore loan against Kancha Gachibowli land

Former Minister T Harish Rao has written to SEBI seeking a probe into a Rs 10,000 crore loan allegedly raised by mortgaging forest land in Kancha Gachibowli through TGIIC, citing SEBI violations and misuse of Telangana’s natural resources

Hyderabad: Former Minister T Harish Rao has written to the chairman of the Securities and Exchange Board of India (SEBI), demanding a comprehensive investigation into what he described as a massive financial fraud involving the Telangana government. He alleged that loans worth Rs 10,000 crore were raised by mortgaging 400 acres of forest land in Kancha Gachibowli through the Telangana Government Industrial Infrastructure Corporation (TGIIC), in violation of SEBI regulations and by concealing critical facts.

Citing findings by the Supreme Court-appointed Central Empowered Committee, Harish Rao pointed out that the mortgaged land was classified as forest area, and that the apex court had warned of jail time for officials responsible for its destruction.

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In a detailed four-page complaint, the BRS leader listed multiple violations of SEBI norms, including concealment of material information, non-disclosure of company structure and financials, and misuse of non-convertible securities to procure the loan. He also alleged that procedural lapses were committed in converting a private company into a public entity without proper transparency or SEBI clearance.

He highlighted that Rs 169.83 crore was paid as brokerage to middlemen in the process, and said TGIIC—whose annual revenues are under Rs 150 crore—lacked the financial capacity to service such a large debt. Describing it as a blatant misuse of Telangana’s natural wealth, he urged SEBI to act without delay and initiate a probe into the irregularities.

Harish Rao urged SEBI to investigate the land mortgage and loan issuance process, assess violations under relevant SEBI rules, and scrutinise the method used to classify the land and determine TGIIC’s financial viability. He also sought directions for full disclosure and public accountability from both the State government and TGIIC over the use of public lands for financial engineering.