Massive scam in Khammam’s Buggapadu Food Park land allocation, Opposition demands probe

A major controversy has erupted in Khammam over the allotment of land at Buggapadu Mega Food Park to an Andhra-based company at rates far below market value. Allegations of a scam have surfaced, with opposition leaders demanding an enquiry into the role of Minister Tummala Nageswara Rao.

Khammam: The Buggapadu Mega Food Park at Sathupalli in the district has become the epicentre of a major controversy wherein an Andhra company secured the park land at a throwaway price.

There have been allegations of a massive scam in the transfer of land worth hundreds of crores to a private company in violation of established norms at the behest of a senior district Minister, whose son is said to be a sleeping partner in the company.

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According to sources, the land in the Buggapadu Food Park area is fetching a price of Rs 50 to 55 lakh per acre. The Telangana Industrial Infrastructure Corporation (TGIIC) had fixed the land rate at Rs 40.47 lakh per acre.

But, the government allotted 72 acres of land in the park to Deepak Nexgen Feeds Pvt. Ltd. Fisheries located at Bommuluru in Bapulapudu mandal of Krishna district in Andhra Pradesh for a mere Rs 21 lakh per acre. The allocation was said to be made without the
State Cabinet’s approval.

It is said that the same company purchased an acre of land next to the park from a farmer for Rs 75 lakh for an access road. It raised a question; why did the government hand over the park land for just Rs 21 lakh to the company that paid Rs 75 lakh per acre.

According to TGIIC officials, as per the DPR the land would be owned by the company if it could develop infrastructure and provide employment to around 3000 persons in the next two years. The land was handed over to the company at a low price as industrialists were not coming forward to set up industries owing to the high land price.

It might be recalled that the foundation stone for the park was laid in 2008 to establish food processing units benefitting farmers in Khammam and Kothagudem districts. Over 200 acres of land were acquired from farmers. In 2016, the previous BRS government also developed infrastructure at a cost of around Rs 109 crore.

Former Minister Puvvada Ajay Kumar in a statement demanded an enquiry into the land allocations at the food park at rates far below market value. He suspected the role of Minister Tummala Nageswara Rao in this matter and called for an investigation into his role.

Sathupalli former MLA Sandra Venkata Veeraiah speaking to the media on Saturday also made a similar demand and wanted the government to protect the park lands. It was said that the whole issue came to light after a Minister in Khammam leaked the matter to the media.