Opinion: The Real Estate Republic of Telangana: A $3-trillion mirage built on licensed loot

Mismanagement, corruption, and unrealistic economic claims have pushed Telangana into a deepening financial crisis under the Congress government

Dr Sravan Dasoju

When Telangana’s Congress government unveiled its grandiose ‘Vision 2047,’ proclaiming that the State would become a $3 trillion economy contributing 10% to India’s GDP, many wondered whether this was ambition or illusion. For a State that rose to global IT recognition under the Bharat Rashtra Samithi (BRS) government led by K Chandrashekhar Rao, the declaration sounds less like an economic vision and more like a rhetorical distraction — an attempt to camouflage a catastrophic fiscal collapse and institutionalised corruption under Chief Minister A Revanth Reddy’s administration.

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The irony is stark. When KCR’s government built the State’s impressive infrastructure, created world-class projects, and positioned Telangana as a global services hub, it faced baseless accusations from the Congress and its media allies regarding irrigation projects and development spending. Yet, not a single BRS leader has been proven guilty of any wrongdoing. The accusations remain exactly what they were: politically motivated charges by an opportunistic Congress desperate to regain power.

Now, two years into Congress rule, the State is drowning in a fiscal crisis so severe that even the CAG has sounded an alarm. The difference is revealing: the BRS was accused without proof, whereas the Congress is guilty based on documentary evidence.

A Year of Chaos, Looting

Under Revanth Reddy’s leadership, Telangana’s finances have deteriorated at an alarming pace. By mid-September 2025 — just halfway through the financial year 2025-26 — the Congress government had already exhausted 83.58% of its planned annual fiscal deficit, posting a staggering deficit of Rs 45,139 crore. Revenue collections stood at a mere Rs 76,940 crore while expenditure ballooned to Rs 89,394 crore, driven by politically motivated welfare schemes designed to buy votes, not build the State. Most damningly, the State posted a revenue deficit of Rs 12,452.89 crore by mid-year, meaning the government could not even fund basic services without resorting to destructive borrowing.

This is not mere fiscal mismanagement; it is systemic looting. The Congress government came to power on promises of loan waivers, employment guarantees, and welfare schemes — all expensive, fiscally ruinous, and politically convenient. By mid-year, it had failed to deliver meaningfully on any of these promises while simultaneously destroying the State’s fiscal position.

The CAG’s audit report has documented liabilities ballooning to Rs 4.68 lakh crore, representing 35.64% of GSDP, well above the prescribed 29.70% limit. Over the next decade, the State must repay Rs 2.67 lakh crore in principal and interest on market borrowings alone. Yet the real scandal lies not in the numbers but in where the money is going: the Musi beautification project and the vaguely defined Bharat Future City scheme — vehicles for large-scale corruption and crony capitalism.

The Musi Scandal

The Musi beautification project, supposedly aimed at cleaning and developing the Musi riverfront in Hyderabad, has become synonymous with Congress corruption. Real estate lobbyists, contractors linked to Congress leaders, and private developers have benefited enormously from land acquisitions, demolitions, and reconstruction contracts. The true beneficiaries are not ordinary Telangana residents but the well-connected cronies of the Revanth Reddy administration.

For the people of Telangana, Congress rule is increasingly defined not by fulfilment but by betrayal, a political model where grand promises win elections but never reach the beneficiaries they are meant for

Under the BRS government, major development projects such as the construction of irrigation dams, roads, and urban infrastructure were completed with accountability and purpose. Yes, the BRS faced accusations, but they were unproven and politically motivated. The Congress, meanwhile, is looting openly. The Musi project will consume enormous public resources, displace thousands of poor families with minimal rehabilitation, and enrich a select few. Where is the transparency? Where are public audits? The silence is deafening.

Future City a Mirage

The Bharat Future City project — a proposed 30,000-acre development with hubs for AI, life sciences, and pharma — is another classic scam dressed in technical language. The government claims to have attracted Rs 3 lakh crore in investments, including Rs 40,000 crore, for life sciences. Yet, ground-level reality tells a different story. Precious little physical infrastructure has been built. Land acquisition has been chaotic, with farmers and small landholders pushed out with inadequate compensation. Private corporations are being handed sweetheart deals that ensure massive profits at public expense.

The project exists more on paper and in press releases. It is a mechanism to justify large expenditures, attract the attention of global investors, and divert public focus from the fiscal catastrophe it has created. Meanwhile, state resources that should go into strengthening schools, hospitals, and basic infrastructure are instead being channeled into ‘mega’ projects benefitting the wealthy and politically connected.

Administrative Incompetence

The BRS government, despite relentless accusations, delivered impressive results. Telangana’s GSDP grew at 10.1%, outpacing the national average. Per capita income reached Rs 3.79 lakh — the highest among large Indian States. The State became a global IT and business services hub, attracting talent and investment from across the world. The services sector grew to 66.3% of GSDP, generating employment and foreign exchange. These were the outcomes of competent governance.

Under the Congress, competence has evaporated. Capital expenditure has been curtailed by 40%, signalling that the government cannot execute even basic infrastructure projects. The CAG has warned that, despite pockets of expertise in IT, the bureaucracy lacks capacity in manufacturing, agro-innovation, and industrial development — sectors vital for economic diversification. If the Congress government cannot execute projects in Hyderabad, the State capital, how can it execute Bharat Future City and dozens of manufacturing hubs across the State? It cannot.

The institutional weakness is not accidental. The Congress government has sidelined competent bureaucrats who worked under the BRS, and replaced them with loyalists and political appointees lacking expertise. The government struggles with basic budget management, as evidenced by the mid-year fiscal crisis. If a government cannot balance a single year’s budget, how can it steer a 25-year transformation toward a $3 trillion economy? The Vision 2047 document, though methodologically rigorous on paper, is merely a distraction from the government’s daily failure to govern.

Loot to the HILT

The Hyderabad Industrial Land Transformation (HILT) policy has become the biggest land-conversion scam in Telangana’s recent history — a legalised mechanism to transfer public industrial land to private builders, political financiers, and insider corporations. Without scientific studies, socio-economic mapping, environmental clearances, valuation transparency, or legislative scrutiny, 9,300 acres of industrial land worth Rs 6 lakh crore have been arbitrarily redesignated as multi-use zones, triggering speculative real-estate plunder.

Where industry should have risen, real-estate financiers have thrived. Where policy should have built factories, it has built fortunes for select political interests — turning Telangana’s industrial potential into a real-estate casino.

Unfulfilled Promises

The Congress rode to power on grand assurances — Rs 500 gas cylinders, Rs 4,000 pensions, Rs 15 lakh crop loan waivers, Rs 2,500 monthly cash transfers to women, job calendar, new government jobs, pending fee reimbursement, pensioners’ relief, 42% BC reservations, unemployment allowances, and debt relief. Two years later, every promise remains either diluted, deferred, or deserted. Welfare schemes are underfunded, pensions rationed, and job notifications stalled.

The government that weaponised hope has delivered disillusionment; the administration that spoke of empowerment has delivered debt, dependency and delays. For Telangana’s people, Congress rule now stands defined not by fulfilment but by betrayal, a political model where dubious promises win elections but never reach the beneficiaries they were made for.

Political Vendetta Vs Reality

The BRS government faced allegations regarding large irrigation projects, particularly the Kaleshwaram Lift Irrigation Scheme. Yet, now not a single BRS leader has been convicted. The accusations lost momentum once the Congress came to power, suggesting they were always politically motivated. The BRS built irrigation infrastructure benefiting millions; the Congress offers loan waivers without productivity improvements, creating dependency rather than sustainable livelihoods.

Now, as the Congress government loots the State under the guise of mega-projects and welfare schemes, where is the outrage from the same media that hounded the BRS? Where are the accusations and press conferences?

Administrative Crisis Is Real

The CAG’s findings are documented facts, not speculative. The mid-year fiscal crisis is not a projection; it is a present reality. For the State to reach $3 trillion economy, it must grow at 11% annually for 25 years, attract significiant FDI — from $2-3 billion annually to $15-20 billion, and transform manufacturing. The Congress government has demonstrated none of these capabilities. Manufacturing remains at only 18% of GSDP, ranking 25th among States and will likely worsen under Congress’ misrule.

Agriculture remains a challenge. Despite 42.7% of the workforce depending on farming, agricultural productivity continues to lag. Instead of modernising farming practices and driving productivity gains, the Congress government relies on loan waivers — a short-term fix that creates moral hazard and undermines long-term structural reform. This is not governance; it is vote-buying masquerading as policy.

The Congress government faces serious questions about its own stability. It came to power on welfare promises it is already failing to deliver. Given the Congress’s internal fragmentation, poor governance record, and mounting fiscal crisis, another electoral surprise in the next 2-3 years is highly probable.

The Blunt Verdict

The Congress’ $3 trillion vision is not ambitious; it is delusional. The State cannot achieve this target under an administration that loots through Musi beautification and Bharat Future City, that fails to balance budgets after just one year in power, that cannot execute basic infrastructure projects, and that lacks the administrative capacity to govern effectively. The BRS built a strong foundation for Telangana; the Congress government has squandered this inheritance in just over a year.

For Telangana’s citizens, the harsh reality is: the Musi project will remain an incomplete scar on the landscape. Bharat Future City will remain a paper dream. The fiscal crisis will worsen. And the State that was once a beacon of development and governance will decline into mediocrity under Congress misrule.

The warnings from the BRS and other observers are not based on political vendetta but on documented evidence of administrative failure, fiscal collapse, and systematic looting. For the sake of Telangana’s future, this government must be replaced by one with genuine administrative capacity and commitment to transparent, accountable governance. Until that happens, the $3 trillion vision will remain exactly what it is: a mirage.

(The author is Member of Legislatative Council, BRS)