NCLAT Case: Doubts over firm’s association with top Congress leader in Telangana behind ‘external pressure’

The recusal of an NCLAT judge from a case involving Hyderabad-based KLSR Infra citing pressure from a senior member of the higher judiciary has triggered political controversy in Telangana, with allegations pointing towards a senior Congress leader known to have ties with the firm.

Hyderabad: The rare incident in which a judicial member of the National Company Law Appellate Tribunal (NCLAT) allegedly being approached by a member of the higher judiciary seeking an order in favour of a party, and recusing himself from hearing the matter, has more connections to Telangana than just the firm being from Hyderabad.

Now, with the Tribunal member recusing himself from hearing the appeal, citing external pressure, doubts are being raised over the source of the pressure. Political circles in Telangana are abuzz with talk that the pressure was allegedly being mounted by a senior Congress leader, whose association with KLSR Infra’s top honchos has been no secret in the State.

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With the leader now holding a very crucial position in the State government, the same company has been in the good books of the government and has been getting several projects. These include contracts for works related to the Rajiv Gandhi Lift Irrigation scheme, the SRSP Stage II works and balance works of the Mallanna Sagar reservoir.

Even before this, back in 2018, when I-T raids were conducted on the said Congress leader, officials had found links between the same firm and the leader, with the company executing several contracts in the leader’s constituency, and sub-contracting allegedly being done through the leader’s brother.

Opposition parties too have been questioning the proximity between the firm and the Congress leader, pointing out how the Land Cruiser vehicle that the leader used when he was an MP and also while holding a top position in the party, was registered in the name of KLSR Infra. They have also alleged that the same company was given contracts worth Rs.600 crore after the Congress leader got into a top position in the government.