Chandra Babu - Emperor of Corruption

8/17/2019 Chandra Babu - Emperor of Corruption

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2 Emperor of Corruption


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3Emperor of Corruption

Andhra Pradesh CM Chandrababu Naidu has achieved a record of

sorts in corruption. Under his leadership, the state has become the

capital of collusive corruption and is underperforming across the

sectors. In the last twenty four months, the quantum of his corruption

has overtaken the total corruption of his previous nine-year tenure

put together. Kickbacks, bribes, shares, commissions…the namecould differ, but corruption is open and ubiquitous in the state.

The Telugu Desam Party (TDP) Government has unilaterally and

without any obligation under the contract has granted escalations to

the civil contractors with retrospective effect even in Engineering,

Procurement and Construction (EPC) contracts where the Contractor

has undertaken not to claim escalation. While facilitating such

escaltions to the contractors through GO MS No.22, the Chandrababugovernment is amassing huge amounts as kickbacks.

Even though the Union Government has an obligation to take over

and completely implement the Polavaram project, the TDP

Government has implemented the ill-advised no storage, temporary

project of Patti Seema at the cost of Rs. 1600 crore just to pocket Rs

500 crore as kick backs by giving the contract. The government gave

the contract at 21.9% excess rate (to the Estimated Project Value) and

in that 16.9% as bonus for completing work in the stipulated time

period of one year. And worse, the bonus clause was not even a part

of the contract when the tenders were called.

Having accomplished that, the TDP Government is now trying to

take over Polavaram project by substantially escalating the project

cost only for pocketing kickbacks, even when the prices of Petrol,

Diesel, Steel, Aluminium and Sand rates have come down, while

cement rates have not gone up.

Today, in Andhra Pradesh, there is nothing that can be done

without a bribe and there is nothing that cannot be done with a bribe.

Chandrababu Naidu

The Emperor of Corruption


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From sand reaches to solar plants, tenders in Irrigation Department to

Power Department, Chandrababu ensured that not a single process is

unaffected by the corrupt government. For instance, his government

has made the illicit sand mining a major source of income by almost

all the TDP functionaries starting from MLAs to Ministers and Chief

Minister running as a syndicate. This is running into thousands of

crores of rupees. Chandrababu has focused on the legal plunder from

the day one and corruption was made a systemic practice. The legal

plunder of government has become an open phenomenon in theState.

After acquiring the ill-gotten money, Chandrababu Naidu has

brazenly started ‘Operation Akarsh’ whereby MLAs from our party are

being poached on day to day basis using Carrot and Stick policy. If

they join TDP, they are paid a minimum of Rs 20 to 30 crore, the lure

of ministerial berths to our MLAs who got elected on our party B

Form and symbol. Chandrababu Government has so for poached 12of our MLAs out of our strength of 67 in total. Such blatant display of

ill-gotten money is not being questioned while the “Anti Defection

Law” what is part of our constitution is being mocked in broad day

light and yet our democracy remains silent.

The TDP is conveying a direct message to opposition MLAs- ‘If

you are with us, there is heaven or else you are in hell’. So far, as many

as 12 MLAs and one MLC have openly defected to TDP lured bymoney and power and what is worse is that the Chief Minister and

his colleagues in cabinet are giving statements that they would

welcome all the MLAs of the opposition with open arms while

assuring them that they would not be disqualified.

When it comes to Amaravati, the State Government, in the name of

developing a world-class capital city, is doing a world-class real estate

scandal worth Rs. 1 lakh crore. Chandrababu breached the oath of

secrecy as he revealed the details of the actual location of the Capital

city to the members of his coterie. This translates to "Insider trading".

To bring down the value of the lands in the prospective Capital


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location Amaravati, the TDP government through its media friends

propagated that the capital city was going to come up in other

locations- Nuzvid or Nagarjuna university areas. Fooled by this

propaganda, people flocked to these areas and the land value in

Amaravati region came down overnight. Seizing the moment,

Chandrababu cronies, his ministers, MLAs, MPs and leaders bought

land in the Amaravati region at throwaway prices duping the local

farmers. And later after his cronies have finished the purchases then

the capital declaration came on December 28, 2014, paramounting"Insider trading" breaching "Oath of Secrecy". This scandal has been

brought out by "Sakshi" daily with irrefutable proofs.

In the name of land pooling, the government grabbed the fertile,

irrigated, multi-crop lands of the farmers, while sparing lands

belonging to his cronies. In return, the farmers were supposed to get

paltry extent of residential and commercial plots in their own villages.

Now, there is no clue as to when and where these plots would begiven. Indeed, he did not take some lands as they belonged to his

men and their benamis. The Chief Minister, however, did not spare

those lands without a reason. The CM recieved quid pro quo benefits

for his generosity.

Chief Minister did not stop with this, he has "zoned" the entire two

districts to create demand for his cronies and to favour his cronies.

Lands belonging to his cronies were marked in real estate zones whileothers were in "Agri Zone-1"

There is no end to such stories of open corruption by Chandrababu

Naidu. Though experts are of the opinion that 5000-acre land is

enough to build the new Capital, Chandrababu insists on gathering

34,000 acres for the city. He is taking the land from the farmers and

handing them over to private players on settlement basis.

Several proofs and GOs which demonstrate his corruption have

appeared in mainstream media. They are being mentioned in our

discussions in Assembly. However, the government is not ready to

face any investigation. The Chief Minster made it clear that his

government was not going to commission any probe whatsoever!


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IndexRecent Scams List 8

Capital Robbery 9

Corruption in Irrigation Department 12

EPC out, Additional Payments in!! 14

Polavaram Project Costs Skyrocketed! 15

Patti Seema Project– Exclusively for Kickbacks 16

Benami bags Huge Contracts 17“Additional Liquor!!” 18

Galeru-Nagari Project Escalated! 19

Mining Barytes Commissions 20

Imported Coal lasts long! 21

Solar Golmaal!! 22

These 10 companies deserve ‘additional incentives’! 23

Pushkaram Funds have gone Godavari Way! 24Mantri has Every Right to Cheat!! 24

Exploitation of Sand Mafia 25

Thermal Projects of Favoritism 26

Huge Scam in Electricity Department 27

Balakrishna's Relative Is Always a ‘Worthy’ Man! 30

One hand proposes, another hand approves 31

4 Departments for Party Cadre 32Water, Tree and Evergreen Favouritism 33

Central Funds Misappropriated 35

A Friend in Deed 36

Gift to Galla Family 37

Special Development Fund No More! 38

‘Additional’ to Nellore Barrage 39

Boon to Vamsadhara Contractors 40

Chandranna’s Gift 40

Lokesh Deal with Millers 41

Kuppam Branch Canal Works only for Stooges 41

Day-light Robbery in Goddumarri 41


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Babu’s Extravagance Costs the State 42

Scams between 1995-2004 45Scams list - 1995 to 2004 46

Details of Land Gifting 47

Corruption in the Sale of PSUs 48

Democracy in Danger 50

A World Class Scam or A World Class City? 56

The Daylight Robbery 58

The Devil in Detail 60Capital Culprits 64

A World Class Scam 69

The Captured Capital 74

Nara Lokesh and his Benami Inc. 75

Sujana Chowdary’s Land Robbing 77

Murali Mohan - The Real Benami 78

Ravela… Traitor of Dalits 80Rs. 295 Crore Dowry to Balakrishna’s Relative 81

Assigned Lands in Prathipati’s Account 82

Quid pro quo with Lingamaneni 83

One Bit, One Benami 87

Narayana.. Narayana 88

Rama... Rama… Krishna… Krishna 92

Payyavula Keshav Descended 93

Dhulipalla's Poramboke Lands 94

Kodela’s Son, the Rising Star of the Land! 96

Kommalapati… Perfectly Illegal! 98

Open Fraud and Deception… the Farmers’ Response 100

Lingamaneni Ramesh - A King of Encroachments 103

A Ravan in Every Lanka 107

Dhulipalla did not Stop 113

Share of Anjaneyulu is 4.69 acres! 114

Assigned Lands Alienated 115

Red Zone in the Name of Green Zone 121


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Recent Scams of Chandrababu(In Rs. in Crores)

Corruption in the name of Capital City 1,00,000

Corruption in the Irrigation Department 6,000

Gifts from Liquor Syndicate 5,100

Kickbacks in Power Projects 4000

Kickbacks from Sand Mafia 3,375

Polavaram Project Cost Escalation 3000

Incentives to Industrialists 2500Water & Tree Scheme Distribution 1800

Benefit from abandoning EPC Method 1500

Fiber Optic grid contract to a benami 1400

Gains from ‘Wadawadalaa Chandranna’ Scheme 900

Wastage of Funds for Godavari Pushkarams 750

Bribes in Patti Seema Lift Irrigation Project 700

Corruption in AP GENCO Thermal Projects 670

Nomination works in Irrigation Department 500

Land at throwaway price to a Friend of Nara Lokesh 338

Gift to Balakrishna's Son-in-law 245

Benefit to Contractors in Vamsadhara Project 214

Kickbacks in Coal Imports 200

Lokesh Deal with Millers 200

Gains from Solar Tenders 155

Additional Payments in Galeru-Nagari and Avuku Projects 153

Kuppam Branch Canal Works to TDP district president 120

Lands to NTR Trusts (in 2 districts) 100

Gains from Support to a Minister who masterminded the Cotton Scam 100

Kickbacks from Bitrates Mines’ Allocation 100

Money made from “Chandranna Gift’ Scheme 100Land gifted to Galla Family 40

Open Cheating in Goddumarri 25

‘Additional’ Cost of Nellore Barrage 10

Total: 1,34,295


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Rs. 1,00,000 Crore

Capital RobberyCM Chandrababu leaked vital information regarding the

Capital city location to his benamis and party men

Nara Lokesh, his confidants and TDP leadersbenefitted to the tune of Rs. 1,00,000 crore

The government is doing real estate business

with the lands of farmers❖ Under the guise of building a world-class capital city, the Andhra

Pradesh Chief Minister is running a real estate business. He leaked the

actual location of the Capital city to his coeteire and helped them

accumulate at least Rs. 1 lakh crore at the cost of fortunes of other

ordinary people. From his swearing till the date of announcement (28th

December 2014) the new capital lands were procured by his cronies.

❖

Even before an official statement was made about the location of thecapital city, the CM’s stooges and their benamis bought large extents of

land in this region. However, most of those sale transactions were not

registered officially. Initially, they took the possession of lands with the

help of General Power of Attorney (GPA) documents. The ruling party

realtors got GPAs for thousands of acres as they came to know the

about the Capital city's location. The GPAs helped them to buy more

land with less money, while some were registered by on the

announcement while others were registered after the announcement

with the help of GPAs in their favour.

❖ Showing very clearly how his cronies lands were not taken into "land

pooling" exempting these lands while other farmers lands were taken

either by hook or crook. Land pooling only gave paltry extents of plots

to the owners. For instance, in the case of Lingamaneni Estate and

Ramakrishna Constructions, the Chief Minister first sent a police official

The note issued by the Water

Resources Department

which shows that the

Lingamaneni guest house

was constructed in violation

of River Conservation Act.


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The AP Government orders issued on

January 1, 2015, which stated that

assigned lands would be pooled

under land pooling process.

The Government orders issued onFebruary 17, 2016, specifying thecompensation for assigned lands

after the conclusion of land deals by TDP realtors

to threaten them. They were told that since their projects also included

assigned lands they breached the laws. Hence, their projects would be

confiscated and used for land pooling. While Lingamaneni Group

bought 804.32 acres, Ramakrishna Constructions bought 179.51 acres. The owners of both these projects compromised with the CM. CM

protected them from land pooling. The CM also benefitted the ruling

party MLA Kommalapati Sridhar by exempting his 43-acre real estate

venture from land pooling for reason best known to him alone.

❖ Chandrababu bragged that his ‘land pooling’ scheme is a voluntary

process. He announced that the new Capital city will be built on 29 villages

located in Thullur, Tadepalle and Mangalagiri mandals. It was decided thata total of 53,743.49 acres needs to be pooled for the capital city. Out of this,

15,010.03 acres is assigned and government land and remaining 38,737.46

acres was to be collected from the farmers. To this effect, the AP

government issued a GO on January 1, 2015.

❖ His cronies have also propagated that the Government would take the

assigned and lanka (riverbed) lands without paying any compensation

from the present owners. These lands were allocated, long back, to the

people belonging to SC, ST and BC communities. The government

officials informed the public that the government could ‘take back’ the

lands without any compensation as they were distributed without a

cost. Scared by the propaganda, the owners of 1,843 acres of assigned

land and 1,514 acres of lanka (riverbed) land sold their lands to TDP

leaders at cheaper rates. Once these transactions were concluded, the


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TDP government came up with a generous package for these lands in

February 2016, fourteen months after the first announcement.

❖ According to the international

standards, it costs Rs. 30 lakh for

residential development an acre of

land. About 3000 sq. yard can be

developed on each acre. However,

the government is providing per

acre 1000-yard residential plot and

450-yard commercial plot as

compensation to the farmers. Thegovernment is developing roads,

parks, buildings. His cronies have

come under real estate zone

facilitating their real estate

activities while other farmers lands

have been pushed to "Agri zone-1"

to create demand for his cronies'

lands. While APZ-1 has a heavy

agricultural tilt, the APZ-2 and 3

are going to host Future Urbanised Developable Area, which will be

developed by the government once it has completed the development

of the Capital city limit. TDP leaders and their benamis have bought

about 10,000 acres of land in APZ -2 and 3.

The draft policy guidelines of the

CRDA that classified the Capital city lands into different zones.

Present

Urban

Area

ProposedUrbanArea

Proposed

IndustrialArea

Agriculture Zone - 1




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The AP government removed the works of Galeru-Nagari Sujala

Sravanthi (GNSS), Handri-Neeva Sujala Sravanti (HNSS) and Gorakallu

projects from previous contractors, which was against the regulations.

Then it escalated the costs of the projects many times and called for new

Some parts of the GOs 153, 154 and 156 which have

finalised the additional payments

A scam took place in thename of cost escalation,

which is worth about

Rs. 6000 crore

The money thathas been offeredas the return gift

Rs. 3000 crore

Rs. 6,000 CroreOpposition of Two Chief Secretaries’ could Not Stop

Corruption in Irrigation Department


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tenders without obtaining any administrative permissions for the same.

While tenders have been called for 25 packages, in a strange coincidence,

all the tenders were won by C.M. Ramesh and a few other leaders of the

ruling party.

Thus, a plan was hatched for the open robbery of Rs. 6,000 crore. In all

packages, mobilization advances were issued, about 50 % bills were also

paid before taking any administrative permissions. As the Finance

Department started raising its objections about this illegal process, the

heads of the government used force and silenced the officials, who were

concerned about the issue. Indeed, the making the payment of advances

and bills without administrative permissions is against the law andattracts audit objections.

Highlighting these intentional lapses, Sakshi daily published

extensive, well-researched stories about the ongoing scam. To make the

Rs. 6,000 crore illegal affair legal, the state government has come out with

‘new cost escalation’ proposals. However, given that the escalation was a

sham, both the erstwhile Chief Secretary I.Y.R. Krishna Rao and the

present Chief Secretary S.P. Tucker refused to sign on these escalationproposals.

To counter the opposition of the Chief Secretaries, CM Chandrababu

Naidu and his son Nara Lokesh brought the ‘cabinet approval’ to the fore.

To the horror and shock of bureaucrats, the highly corrupt cabinet

‘approved’ the thoughtless cost escalation proposals. Despite the

‘approval’ of the cabinet, the Chief Secretaries refused to sign on these

proposals. Due to their opposition, the proposals have gone back to thecabinet thrice.

A proposal going back to cabinet thrice due to opposition from

bureaucrats could be first of its kind incident in Independent India’s

history. Not just one, but two Chief Secretaries refusing to give nod to the

government proposals indicates the dangerous levels of corruption in

Andhra Pradesh. According to officials of the Irrigation Department Rs.

6,000 crore scam has taken place under the government’s watch and half of the amount i.e. Rs. 3,000 has already changed hands.


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The heads of AP government brought GO no: 22 to make additionalpayments to contractors. According to this GO, the government can

escalte the costs of the projects that awarded under the Engineering,

Procurement and Construction (EPC) method.

Even though the projects awarded under the EPC need not to be

escalated, the AP government has introduced a new provision for cost

escalation even for project that were tendered under the EPC. That too

with a retrospective effect from 2013. This GO hugely benefits the

favoured contractors, causing a huge loss to the exchequer, and that too

when prices of all commodities like cement, steel and diesel have crashed.

The government is also killing several other prudential practices. For

the first time, it expressed willingness to pay Standard Schedule Rates

(SSR) for concrete works. This is going to burden the exchequer an

additional Rs. 3,000 crore. Half of this money-Rs. 1,500 crore- would be

repaid to the bigwigs of government as the kickback.

Due to the GOs 22 and 63, the rate of cubic meter concrete has goneup from present Rs. 2,500 to Rs. 4,000. Now, the government has

increased another Rs. 3000 for cubic meter concrete and is ready to pay

Rs. 7,000! These GOs have made provision for generous additional

payments for labour, sand, machinery, dewatering, controlled blasting,

digging of hard soils, digging of hardest soils, among others.

Rs. 1,500 Crore

EPC out, Additional Payments in!!The additional payment

made to the contractors

Rs. 3,000 crore

The money that was

paid a bribes

Rs. 1,500 crore

The GO 22, a generous boon to contractors


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Polavaram project is a national project according to the Section 90 (IV) of the AP Reorganisation Act. This means it is the responsibility of the Centralgovernment to fund the project, get the required clearances and completethe project. The Centre has formed Polavaram Project Authority (PPA) takecare of this project. The initial estimated cost of the Polavaram project in2005-06 was Rs. 10,151.45 crore. The amended estimation of the project in2010-11 was Rs. 16,010.45 crore and the same was approved by the PlanningCommission. However, the present TDP government has straight away takenthis cost to Rs. 31,000 crore.

The AP government- which doesn’t want to hand over this ‘lucrative’project to the Centre- has so far failed to submit certain omissions to the PPAwith the objective to prevent the handing over the process. Since the APgovernment has failed to submit the project to the centre, the project ispresently under its watch. The state government is making the most of theopportunity.

For instance, the value of head works which are being executed by thepresent contractor has been increased from present Rs. 4,041 crore to Rs.

6961 crore. According to prevailing norms of kickbacks, Rs. 690 crore will gothe accounts of the bigwigs. Hundreds of crores of rupees have been given asmobilization advance to the companies such as Transstory India Ltd. Theseventh package works left by undone by L&T valued at Rs. 23 crore wasgiven on nomination basis for an inflated price of Rs. 73 crore.

In all, according to the officials of the Irrigation Department, 10% of thetotal project cost i.e. Rs. 3,000 crore is going into the pockets of thegovernment heads.

Rs. 3000 crorePolavaram Project Costs Skyrocketed!The cost for Polavaram project

after cost escalation

Rs. 31,000 crore

The money that has changed

hands in this transaction is

Rs. 3,000 crore

Two portions of the proceedings that were approved by the

state cabinet for escalating the costs of Polavaram project.


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Polavaram project is a God’s gift to Andhra Pradesh. Instead of completing this

mega project, Chandrababu Naidu brought forth the Patti Seema project, which

actually is a part of Polavaram project. The project cost was estimated to be a

whopping Rs. 1,300 crore and contract was awarded to a contractor who is close

to the Chandrababu Naidu.

Firstly, some conditions in the tender schedule were tailor-made to suit to a

few companies that are close to the CM. Though Estimated Project Value (EPV)

was Rs. 1300 crore, the bid of the L1 contractor was Rs. 1,600 crore, which was 21.9

% higher than the EPV. According to the rules, any bid that is more than 5 % of the

EPV amount shall be rejected. However, the company was given the contract by

converting the remaining 16.9 % (21.9 % - 5 %) into the bonus for completing the

project in time! Actually, the bonus clause was not even a part of the contract

when the tenders were called. The AP government has added this provision to

Patti Seema project contract to get additional kickbacks. Though there was an

opportunity to bring down the project cost by changing the designs and

reducing the number of motors and pipelines, the government is paying anadditional amount of Rs. 250 crore to the contractor.

The Irrigation Department officials think that the kickbacks were the reason

for government’s generosity towards the contractors. The Chief Minister

Chandrababu Naidu and his son Lokesh inflated the cost of Patti Seema project to

Rs. 1,600 crore and are said to be benefitting to the tune of Rs. 700 crore.

Rs. 700 crorePatti Seema Project– Exclusively for Kickbacks

After the escalation,

the cost of Patti Seema

project has gone up to

Rs. 1,600 crore

The kickbacks that have been

offered to the government

heads so far are

Rs. 450 crore

The total amount

of kickbacks is

Rs. 700 crore

The memo which enabled the contractors to quote 5 % additional amount. The memo said 5 %additional amount shall be paid to the contractors if they complete the works before the deadline.


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An Electronic Voting Machine (EVM) thief, an accused in EVM

tampering case, TDP Information Technology advisor, a key person in

Heritage Group of Chandrababu and his benami…all of them are one and

the same person- Vemuri Harikrishna Prasad.

Though his company Tera Software and its affiliates were blacklisted

by the Andhra Pradesh Technology Services, Chandrababu Naidu

government awarded the works of Fiber Grid project worth Rs. 320.85

crore to this company. U-WIN, a central government project which

collects the data of unorganized labourers was also gifted to the

company of Harikrishna Prasad. While the initial cost of this project cost

was Rs. 45 crore, it was increased to Rs. 180 crore and awarded to Tera

Software. The plans are in the pipeline to award E-pragathi project- whichis worth of Rs. 2,398 crore- to Tera Software’s partner Cisco Software.

While the total value of these projects is Rs. 2,800 crore, half of the money

i.e. Rs. 1,400 was supposed to reach the pockets of the government heads,

according to the officials who don’t want to be named.

Rs. 1400 crore

Benami bags Huge ContractsThe value of projects that were

awarded to Harikrishna Prasad-

a confidant of Nara Lokesh is

Rs. 2,800 crore

The 50% of kickbacks

in the transaction is

Rs. 1,400 crore

The GO that has finalised the rules

and regulations of the tender

The 5th page of the GO that shows the

appointment of Harikrishna Prasad as a

member of High-Level Tender Approval

Committee.


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The Andhra Pradesh government stated in 2015 that it was going to comeup a new liquor policy on the lines of the policies of Tamil Nadu and Kerala.

The thing is in Tamil Nadu and Kerala, the governments run the liquor shops

and there is no place for private individuals in the liquor business. This

statement was indeed an indirect warning to the liquor syndicate of the state

and it was aimed at making them surrender to the government.

As government expected, the liquor syndicate has come for comprise and

allegedly offered a bribe of Rs. 1000 crore to the heads of the government.

Thanks to this understanding, the state government has changed its mind

and finally come up with Karnataka-style liquor policy, where there would be

no active role for the government in the policies liquor business. Had the AP

government come up with Tamil Nadu style policy; the liquor syndicate

would have gone out its business.

There are also allegations that the syndicate members are already paying

Rs. 200 crore every month to sell their liquor products above the Maximum

Retail Price (MRP). That means the bigwigs of the government raked up Rs.4,000 crore in last 20 months. Besides these earnings, the state government

has invited applications for new distilleries. It has received 12 applications

and gave four permissions. It is learned that these four companies have

already paid Rs. 400 crore to heads of the government. In all, liquor has been

a quite lucrative business for the heads of the government.

Rs. 5,100 crore

“Additional Liquor!!”

The GO that permitted the production of liquor

The kickbacks from

the liquor syndicate

in last 20 months

Rs. 4,000 crore.

The bribe that was paid bythe Liquor Syndicate for

Karnataka-style liquor policy

Rs. 1,000 crore

The bribe that was paid

for new distilleries

Rs. 100 crore


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In Galeru-Nagari

Sujala Sravanti (GNSS),

the AP government has

increased the project

costs unprecedentedly.

For instance, the leftover

work worth Rs. 10 crore in

the 29th package mere

was removed from the

contractor’s scope

without any penalties and

the same was retendered. The cost was increased

to Rs. 115 crore and

awarded to Ritvik Projects

of C.M. Ramesh, an MP of

the ruling party, without even taking administrative permissions. Ironically,

two consecutive Chief Secretaries of the state have objected this

unprecedented escalation of project cost. Despite their opposition, the state

government discussed the proposal in the cabinet and approved. TheEngineering, Procurement and Construction (EPC) model of the Irrigation

Department never allows for project cost escalation.

After making the payment of Rs. 35 crore bill, a dispute arose between

C.M. Ramesh and the Irrigation Minister as to the percentages of the

commissions. Due to this dispute, the truth about the absence of

administrative permissions came out. As a result, further payments were

stopped to the company of C.M. Ramesh. The outraged MP-cum-contractor

exposed the corruption in the Avuku tunnel works (Package No: 30), which isa part of GNSS project. He wrote a letter to the government stating that the

Irrigation Department officials were making the additional payment of Rs. 44

crore to the contractor, which was against the provisions. In these two

instances, the taxpayers’ money paid to the contractors were - Rs. 99 crore

and Rs. 44 crore; a total of Rs. 153 crore.


Rs. 153 crore

Galeru-Nagari Project Escalated!

The memo issued by the Chief Engineer seeking a report on

Avuku tunnel works as there were corruption allegations.

The additional amount paid to TDP MP C M Ramesh in

two packages of Galeru-Nagari Project is Rs. 153 crore.


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At least Rs. 178 crore worth collusive corruption took place in the sale

transactions of barytes mineral. The state government which initially said

that it was inviting global tenders actually colluded with private

companies and awarded the tender to it through Andhra Pradesh

Minerals Development Corporation (APMDC). The tender norms were

tailor-made and only three companies were made eligible for the process.

These three companies that participated in the tender process were

coordinated by the ruling party bigwigs and became a cartel. These

companies were awarded the Mangampet mines in YSR Kadapa district to

these companies. The government has brought down the basic price of

barytes and benefitted these companies to the tune of Rs. 178 crore. The

government issued GO No: 163 in 2015 to facilitate this private gain.

In a bizarre twist, Chandrababu Naidu cancelled the previous tender

that was awarded to Chennai-based Trivnei Earth Movers Private Ltd. andonce again awarded the tender to the same company at more escalated

price. Due this understanding the government is going to pay Rs. 531

crore additional amount to this company. It is estimated that a few

hundreds of crores of rupees would be given as kickbacks to the heads of

the government.

Rs. 100 crore

Mining Barytes Commissions

The GO that has decreased the basic rates.

The benefit that was given toprivate companies in barytes

mineral sale transactions

Rs. 178 crore

The money that changed

hands in this transaction

Rs. 100 crore


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About Rs. 500 crore taxpayers’ money was wasted in purchasing theimported coal for Andhra Pradesh Power Generation Corporation Ltd. (APGenco). A Public Interest Litigation (PIL) was filed in the Hyderabad HighCourt in this regard. The following is the story. The AP Genco entered intoagreements with the central government units PEC Limited and MSTC Ltd. onMay 6, 2013 to purchase imported coal. Though the tenure of the contractwas only for 6 months, the purchases continued until the end of 2015. Although it was the government companies that were on screen, the coal mafiaran the actual show under the guise of sub-contracts.

While 12 lakh ton coal was purchased during the contract period, 19.25lakh tons of coal was purchased after the agreement time. The coal rate in theinternational market per ton during the contract period was US$ 69.15, itbecame US$ 80.15 after the inclusion of sea freight charges of US$ 11.However, the coal price came down in the international market to US$ 52.40by March 2015 and its final rate after addition of US$ 7.23 of sea freightcharges was US$ 59.63.

The AP Genco paid additional price of US$ 20.55 for each ton of coal it hadimported. In all, it paid Rs. 246 crore additionally. Though it was the

contractor’s onus to transport the coal from Krishnapatnam port to thethermal projects, the AP Genco paid this fee too. For the transportation costs,the contractors were paid Rs. 100 crore during the contract period and Rs. 200crore after the contract time was over.

A total of Rs. 546 crore of public money was misused by the government.According to a highly reliable source, a good amount of that money went intothe pocket of the Chief Minister.

The money that changed hands in this

transaction is Rs. 200 crore.

The summons issued by the Central Revenue Intelligence Directorateon the problems in the bills of imported coal.

Rs. 200 crore

Imported Coal lasts long!The value of a possible scandal in the

coal purchases is Rs. 500 crore


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The AP Genco favoured a few private companies in awarding thetenders for solar power projects, which are to be established in Anantapur

district. The details are as following. The AP Genco called for Engineering, Procurement & Construction

(EPC) tenders for its 500-MW solar power project in Talaricheruvu village

near Tadiparti town of Anantapur. The BHEL, which quoted Rs. 6.26 crore

for Mega Watt was selected as L-1 through reverse bidding method.However, the government strangely gave this project at the same price to

other companies such as Sterling, Tata, L&T and MEGA. The problem is this price itself is an inflated price. The NTPC which is

establishing a similar thermal power plant in the same district hasfinalised the price of Rs. 4.91 crore for MW. According to power sectorexperts, Rs. 4.75 crore is the reasonable cost for the production one MW

solar power.

Even the eligibility criteria of the companies have become an issue.While 17 companies participated in the tender bidding of National

Thermal Power Corporation (NTPC), only five companies got the eligibilityto participate in the tender process of AP Genco. This was because the

important conditions of the tender were tailor-made to suit the interestsof curtained favoured companies. The AP Genco is paying Rs. 1.51 croreextra for each MW of power, which means the company will be burdened

by Rs. 755 crore. When the scandal was taken up Sakshi daily and a few

PILs were filed in the Hyderabad High Court, the AP government stoppedapproval process. It was clear the tender process was initiated to kick start

a scam and finally got stopped due the Court and media intervention.

The prospective loss that will haveto be borne by AP Genco, as it hadto allow the highest bidding, is

Rs. 755 crore.

The money that changedhands in this transaction is

Rs. 155 crore

The new regulations created by the Andhra Pradesh Power GenerationCorporation Ltd. (AP Genco) to select the ‘choicest’ companies

Rs. 155 crore Solar Golmaal!!


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The Chandrababu Naidu Government decided to provide ‘additional

incentives’to 10 industries for reasons that were best known to him. Recently, the

Govenrment have released industrial incentives pending for the last few years to

their choicest industries even without asking, setting aside several other

industries which claimed the incentives and are waiting eagerly for the release of

the same. For this, the Government went beyond its present industrial policy and

this decision cost the exchequer Rs. 5000 crore. It is learnt that half of this amount

i.e. Rs. 2500 would reach the government heads. While the new industrial policy

of the state allows only 50 % subsidy in power charges, these 10 companies were

given 100 % reimbursement in VAT and CST!

Rs. 2,500 crore

These 10 companies deserve ‘additional incentives’!

Chandrababu gave additional incentives to 10 companies,going beyond the announced industrial policy. This GO shows the

additional incentives that were showered on Tarakeswara Textiles Pvt. Ltd.

The total value of additional

incentives that were

extended to 10 companies

Rs. 5000 crore

The kickbacks to the

heads of the government

Rs. 2,500 crore


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The Andhra Pradesh government has allocated Rs. 1,500 crore for the

works of Godavari Pushkarams. However, half of that amount Rs. 750

crore was pocketed by the ruling party leaders and government officials.

Out of the total amount of Rs. 1,500 crore, the Road and BuildingsDepartment was allocated Rs. 782 crore, the remaining funds were

obligated to other departments. During the execution of these works, all

the rules and regulations were set aside. The works that were below Rs. 10

lakh were given to the ruling party men on nomination basis. The R&B

Department issued an order to this effect.

BJP MLC Somu Verraju complained to the Vigilance Department that

out of Rs. 782 crore, Rs. 400 crore was snatched away due to the

ubiquitous corruption in the works. A probe is going on into thiscorruption.

The total funds allocated for

Godavari Pushkarams is

Rs. 1,500 crore

The amount that recycled in

the form of kickbacks is

Rs. 750 crore

Pushkaram Funds

Have gone Godavari Way!

Allegedly the Chief Minster backed a scam which was perpetuated by the

Agriculture Minister Prathipati Pulla Rao; who is playing a crucial role in the Capital

Region Development Authority (CRDA) affairs. He did this scam with help of a

cotton trader from Guntur district. Both of them have cheated the cotton farmers

of the district by selling their cotton to Cotton Corporation of India (CCI) in the

disguise of farmers. They used their relatives and brokers to sell cotton to the CCI.

The Vigilance and Enforcement Department report on this issue has made it clear

that 80 % of the purchases conducted by the CCI in Guntur district were bogus.

Though there was sufficient evidence for the role do the Minister in the

scandal, the Chief Minster rubbished the report and backed the minister. As of

now, the scam is under CBI probe. According to an estimate, the rapacious

minister made Rs. 200 crore by sidelining the farmers and paid Rs. 100 crore to the

Chief Minister for the protection.

The amount that was appropriated by relatives,confidants of the Agriculture Minister

Prathipati Pulla Rao is Rs. 200 crore.The bribe amount is

Rs. 100 crore

Mantri has Every Right to Cheat!!


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Rs. 3,375 crore

Exploitation of Sand Mafia

The GO. No. 94 which presented the new sand policy

The clipping which shows the state Finance Minister YanamalaRamakrishnudu, who was confessing that an open robbery of

Rs. 2000 crore took place in the name of the sand mining

The actual income

that was supposed

to be earned by the

state government by

February 2016

through sand mining

Rs. 5,496 crore

The actual incomeearned

Rs. 964 croreThe money that

was swallowed

Rs. 4,500 croreThe 75% of the

amount went to the

Chief MinisterChandrababu

Naidu and his son

Nara Lokesh i.e.

Rs. 3,375 crore

In Andhra Pradesh, the sand mining is taking place in 383 sand

reaches. The state has about 83 major sand reaches on Krishna, Godavari,

Penna and Tungabadhra rivers and 300 minor reaches. If the value of alorry of sand is Rs. 15,000 and a minimum of 50 lorries of sand were sold

from each major reach every day, the state government was supposed to

get Rs. 3174 crore income by the end of February 2016. Even if 10 lorries

of sand was sold from each minor reach every day, the government will

add another Rs. 2,295 crore to the state exchequer.

In total, the state government was supposed to get Rs. 5,469 crore

income from the sand mining. However, it has got only Rs. 964 crore. Thiseffectively means Rs. 4,500 crore of public money had gone to private

pockets. There are allegations that 75% of it (Rs. 3,375 crore) had gone to

the Chief Minister Chandrababu Naidu and his son Nara Lokesh. The state

Finance Minister Yanamala Ramakrishnudu at a press meet confessed the

sand scandal worth Rs. 2,000 crore.


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Rs. 670 crore

Thermal Projects of Favoritism

Chandrababu Naidu inflated the prices of the works of proposed thermal

power plants at Krishnapatnam and Ibrahimpatnam. The APGenco has

awarded two 800 MW power projects, Krishnapatnam TPP to Tata Projects

Ltd. at Rs. 6.3 crore per MW and Ibrahimpatnam TPP to BGR at Rs. 5.85 crore,respectively, which are quite high rate by any norms of the industry. While in

other states like Telangana and Gujarat, cost per MW is ranging from Rs. 3.94

crore to Rs. 4.76 crore, that too both these projects are of the same

specifications.

Though the Boiler, Turbine, Generator contracts of both the plants were

given to BHEL, a government undertaking, the ‘Balance of Plant’ contracts

were given the private companies.

To award contracts to these companies, the AP Genco adopted a criterionwhich was more stringent than those used by the NTPC. Despite its present

financial difficulties, the AP Genco was ready to pay Rs. 2,680 crore extra

money to the contractors. As this transaction was made public by Sakshi daily,

the contract process was halted temporarily.

The additional payments made by

AP Genco in the two thermal projects

Rs. 2680 crore

The kickbacks

Rs. 670 crore.

The NTPC qualifying requirements which said completion of one thermal project was sufficient to participate in its tender process

The AP Genco requirements that set the completion of at least

two projects as the eligibility criterion to favour BGR group


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There was a huge scam in AP Electricity Board. According to an

estimate, about Rs. 15,000 crore scam has took place in power

purchases from the private power plants. From that amount, bigwigs

of the government have pocketed at least Rs. 4,000 crore.

The Chief Minister and his son displayed extraordinary keenness inthe activities of AP Transco and AP Genco. They micromanaged the

contracts, the power purchases as well as other tenders. Though there

was no need, the government bought power from private suppliers

with the pretext that the state always needs additional power. The

Rs. 4000 crore

Huge Scam inElectricity Department

The ‘differences’ in powerpurchases from

private companies is

Rs. 15,000 crore

The moneythat paid

as the bribe is

Rs. 4,000 crore

While the AP Electricity Regulatory Commission has confined the power purchases to 735 million units, the Discoms have bought 13 million units


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state government never encouraged AP Genco to increase its power

production and gave priority to private power purchases.

Chandrababu Naidu gave orders to purchase 2000 MW power

right after he took over the office though there was no need. The

Discoms had to take this burden. Between May 2014 and October

2015, a total of 13,180 million units of power was purchased from the

private companies. Its value is not less than Rs. 8,289 crore. Some

portion of this power was bought at a record rate of Rs. 10 per unit

while the Genco could produce the same unit at Rs. 4.50. There has

been a discussion in the Power Department that Nara Lokesh, son of the CM, took huge kickbacks from the companies that benefited from

these transactions.

The power is available in the open market at the price of Rs. 1.90

per unit (during nights) and Rs. 2.71 per unit (during the day time). This

was made clear by the country’s largest power trading corporation

Indian Energy Exchange (IEX). Despite the availability of power at

lower prices, the power distribution companies (Discoms) of Andhra

Pradesh is buying power at a whooping rate of Rs. 5.11 per unit. The

IEX has reported this questionable practice to the AP Electricity

Regulatory Commission (APERC).

Indian Energy Exchange Laid it Bare


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In 2015-16 too, the maximum price of the power in the open

market was Rs. 3.77 per unit (24 hours). The IEX has questioned why

the AP government could not utilize this opportunity. (The AP Discoms

have placed short-term power purchase orders for more than 16,000

million units of power during this period at higher prices.)

The Discoms have proposed to buy 64,706 million units in 2016-17

financial year. Out of this, the production of AP Genco and the state

share from the central grid account for 39,420 million units. The

Discoms are going to buy remaining 25,286 million units from the

private power companies.


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The TDP government gifted the land- which is actually worth Rs. 250crore for only Rs. 4.99 crore to M.S.P. Rama Rao, a relative of TDP MLA and

actor Balakrishna. The land that was located in Jayanthipuram near

Jaggayyapeta to VBC Fertilizers and Chemicals Ltd., which belongs to Mr.

Rao, who is son of former TDP MP M.V.V.S. Murthy, a close confidant of

Chandrababu Naidu.

This land was previously earmarked for an industrial park by AP

Industrial Infrastructure Corporation. A GO (No: 523) was also issued by

the previous government to this effect on September 28 of 2013.

Amending this GO, Chandrababu government issued another GO (No:

269) on July 15, 2015 and allocated the land to VBC Fertilizers and

Chemicals Ltd. for the purpose of establishing a urea manufacturing

plant.

Rs. 245 croreBalakrishna's relative is always a ‘worthy’ man!

The GO that allocated 498.93 acres of land to VBC Fertilizers and Chemicals Ltd. near Jaggayyapet, Krishna district. While an acre of land costs Rs. 50 lakh here, it was

allocated for only Rs. 1 lakh

The land that is worth of Rs. 250

crore was gifted to a relative of

the Chief Minister for only

Rs. 4.99 crore

They benefitted by

Rs. 245 croreand above


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Chandrababu Naidu made strategic moves to grab valuable land in all

the district headquarters. As the Chief Minister, he approved the

applications that sought land allocation to NTR Trust. Interestingly, he was

the one who made these applications when he was chairman of the trust.

That means he made an application for the lands with on hand and

approved them with another; after he became the Chief Minister. He isnow going to extend this method to rest of the districts.

In the heart of Srikakulam town, 1.29 acres of land (Survey No: 700-1)

and another 0.71 acres of land (Survey No: 701-1) were allocated to NTR

Trust. This land was earmarked for the needs of the municipal

corporation. However, the same land is allocated to NTR Trust. To this

effect, orders were released on August 4. The land was leased to NTR Trust

for 99 years at annual lease fee of Rs. 25,000! Likewise, the 2000 sq. yards

land that is located in the heart of Kakinada city was also allocated to NTR Trust. The market value of this land is about Rs. 25 crore. In Kadapa, one

acre land in the located in the centre of the city was also allocated to the

Trust for Rs. 10 lakh. The market value of this land is about Rs. 50 crore. The

decks are being cleared to make similar allocations in rest of the 10

districts.

The GO that allocated the land in Kakinada to NTR Trust

The value of land that was allocated to

NTR Trust in three districts is Rs. 100 crore.

One hand proposes,

another hand approves


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The Chandrababu Naidu's government is leaving no stone unturned to

make money for party men. One of the direct ways to do so, is to award them

the work contracts on nomination basis without calling for any tenders. Such

works are majorly available in four departments viz. – Irrigation, Municipal

Administration, Panchayat Raj and Roads and Buildings Department. So far,

Rs. 695 crore worth works have been awarded to the ruling party cadre in

these four departments on nomination basis. These works do not include the

works of Water and Tree scheme, which also offers massive work

opportunities.

Rs. 350 crore worth works in Irrigation Department, Rs. 75 crore worth

works in Municipal Department, Rs. 120 crore works in Panchayath Raj

Department were allocated to the TDP cadre. As these are the Rs. 10 lakh-

below works, they are also not being audited. As a result, nobody is actually

caring for the quality of those works and a massive corruption is taking place

right under the nose of the government. Despite the protests from

opposition parties, the government is in no mood to look into the problemsof the nomination based work allocation.

The state Vigilance Department has given a report to the government that

funds have been misused in the nominated works in Guntur and Anantapur

districts. As usual, the government binned the report and nomination spree

continues.

The memo that granted 34 works of the

Irrigation Department worth Rs. 13.66 crore on nomination basis.

Rs. 500 crore

4 Departments for Party CadreThe value of the worksthat were allocated on

nomination basis

Rs. 695 crore

75% of it i.e. Rs. 500 crorewas converted into commission

which paid at different levels of

government


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Corruption spread its tentacles to each village in Andhra Pradesh after

Chandrababu Naidu became the Chief Minister. The Water and Tree

Scheme that was supposed to preserve the ecological environs has

become a major source of corruption in the state and a source of income

to ruling party cadre. As these works are being allocated on nomination

basis, it has become a scheme of ruling party’s rank and file.

In 2014-15 financial year, Rs. 2444.90 crore worth works were awarded

on nomination basis under this programme. Though the Chief Minister

talks about financial hardships of the state repetitively, the bills of Waterand Tree Scheme are being paid in time, without any delay. During his last

tenure, the Chief Minister took a loan of Rs. 1400 crore from World Bank

for a similar programme and spent at least half of the amount. However,

now, the ruling party cadre are spending only 25% on the works and rest

of the 75% is being used for distribution among the party cadre, leaders

Rs. 1800 croreWater, Tree and Evergreen Favouritism

The value of the Water and

Tree Scheme works that were

allocated on nomination basis is

Rs. 2,444.90 crore.

75 % of it i.e. Rs. 1,800 crorehas been appropriated

by the leaders of the

government and ruling party.

The GO that increased the monetary limit of the works of

Water and Tree Scheme from Rs. 5 lakh to Rs. 10 lakh.


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and the government officials.

This effectively means the government has abetted corruption worth

of Rs. 1800 crore. The works such as tank desilting, construction of ruralroads, digging works are being taken up under the below-Rs. 10 lakh

category. Most of the times, the ruling party cadre are showing the works

that were already done as new works. Or else they are doing them

partially. As there is no auditing of these works, it was very easy for them

to make money out of these works.

Rules that favour exploitation

The Hyderabad High Court has faulted the awarding of works worthRs. 5 lakh and above on nomination basis. However, it did not change a

thing for AP Chief Minster N. Chandrababu Naidu. He rather changed the

rules and started offering works up to Rs. 10 lakh on nomination basis. He

has divided all the works of Water and Tree Scheme into smaller works of

Rs. 10 lakh and distributed them generously among his party men.

The state government issued a memo (No: 1044/CAD-1) on January

27, 2016, ordering the speeding up of the works of Water and Tree

Scheme. On top of it, the Water Resources Department issued another

memo on March 20 directing to pay Rs. 29 for each cubic meter of silt in

desilting works. It ordered to entrust desilting works of the tanks that

have 100 acres and above ayacut to Irrigation Water Committees. On

February 20, the same department issued another memo which stated

that desilting works of tanks that have less than 100 acres ayacut need to

be executed by Janamabhoomi Committees. These memos ensured that

the committees that are dominated by the ruling party members get thecontract works.

The following are the works and their expenditure under Water and Tree programme: –

S.No. Name of Work Number Expenses

(in Rs. in Cr)

1. Tanks desilting 15.55 crore cubic meters 1192.52

2. Check dams and percolation tanks 25,308 188.56

3. Farm ponds 73,777 119.19

4. Other structures of water storage 80,230 711.20

5. Revival of lift irrigation schemes 159 233.43

Total 2444.90


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Chandrababu Naidu’s government did not allow the Central

government funds to be spent as per allocation. The central funds of Rs.

1,217 crore were diverted by the AP government and were used for works

of nomination basis. The state government started a new scheme named

‘Wadawadalaa Chandranna Bata’ (which translates into Chandrababu's

road in Every Locality) by appropriating the funds of the Finance

Commission and National Rural Employment Guarantee Scheme.

In 2015-16 financial year, state government set a target to build 3,043

kilometers rural roads at the cost of Rs. 1,217 crore. Most of these works

were divided into the works of Rs. 5 lakh value and were gifted away to

the TDP men in the villages through the Engineering Division of

Panchayath Raj Department. According to the departmental sources, the

TDP cadre is spending only 25% of the funds and appropriating the

remaining substantial lion's share.

By March 2016, works worth Rs. 685.60 crore were completed and

another Rs. 531.60 crore worth works were yet to be completed. Funds of

the Finance Commission and the NREGS have to be spent under the

supervision of village sarpanches. However, the AP state government

curtailed the rights of local bodies and unethically diverted funds to its

party cadre through nomination method.

While there is an option to take labour component up to 100 %, the

TDP govenrment has confined it to 60 %, bringing down the work days

avialable to the rural poor. As a result, a lot of people are migrating to

other states in search of work.

Rs. 900 crore

Central Funds MisappropriatedThe funds released by

the Centre forvillage panchayats

Rs.1,217 crore

75% of it i.e.

Rs. 900 crorehas gone into the

pockets of TDP men


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The state government cleared decks to gift a land worth Rs. 363 crore

at just Rs. 25 crore to the company of a friend of Nara Lokesh. The AP

Industrial Infrastructure Corporation (APIIC) allocated the land to

Centrical Solutions, the company of Sridhar, a friend of Nara Lokesh. While

the AP Land Management Agency (APLMA), which functions under the

Chief Commissioner of Land Administration proposed that the value of an

acre was Rs. 7.26 crore, the state cabinet set aside the agency’s

recommendation and decided the land value was Rs. 50 lakh per acre. The

market value of this land is said to be thrice to the price decided by the

APLMA.

The APLMA recommended APIIC that the 50-acre land has to be

allocated at the price of Rs. 363 crore (Rs. 7.26 crore per acre) through its

resolution on October 16, 2015. However, the cabinet decided to gift

away the 50-acre land to Centrical Solutions at the price of only Rs. 25

crore. To this effect, the Revenue Department issued a GO (No: 428) on

November 11, 2105. Because of this cabinet decision, the state exchequer

lost Rs. 338 crore.

Rs. 338 crore

A Friend in Deed

The GO that allocated 50 acres land to Centrical Solutions,the company of Lokesh friend Sridhar, in Vizag


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Chandrababu government gave away the prime land in temple town

Tirupati at a throwaway price to a company which belongs to the TDP MP

Galla Jayadev. The land is located in Karakambadi on Kadapa-Tirupati

highway and its value is Rs. 43.38 crore. However, the land was given to

Mangal Industries of Galla family at just Rs. 4.88 crore. The 21.69 acres land

patch was given to Mangal Industries at the value of Rs. 22.50 lakh per

acre; the GO no: 430 was issued to this effect by the Revenue Department

on November 12, 2015.

It is very difficult to get land in Karakambadi area, which is very near

to Renigunta Airport, Tirupati and Renigunta railways stations, Tirupati

bus stand and Mangalam bus depot. The market value of the land is Rs.

2.5 crore per acre but the government allocated it for Rs. 22.50 lakh per

acre. Galla Aruna Kumari, a former minister and mother of Galla Jayadev,could not get this thing done while she was a minister in the united AP

cabinet. However, Chandrababu got it done for her very easily as the Chief

Minster.

Rs. 40 crore

Gift to Galla Family

The GO that allocated the land toMangal Industries, which belongs to Galla family


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The misuse of monies of Special Development Fund (SDF) is another

irrefutable proof for the TDP government abuse of public office. The

government was not satisfied with gifting away the liquor shops, lands

and sand reaches; it is also gifting the SDF grants- which are intended for

the development of constituencies- to its party leaders. These funds are

allocated according to the recommendations of local MLAs. However, the

government set aside these regulations to distribute the funds among its

leaders.

While these funds are to be evenly distributed among the MLAs, the

TDP government is making use of the ‘discretion of CM’provision are and

not granting any funds to the opposition YSRCP MLAs. Wherever there are

opposition MLAs, the SDF grants are being granted to TDP constituency

in-charges and thus the government funds are being converted into

party funds. Even the GOs issued by different departments are also

mentioning the TDP in-charges as the elected MLAs!

The GO issued Rs. 2 crore to Silpa Chakrapani Reddy by mentioning him asSrisailam MLA, while the actual MLA is Budda Rajasekhar Reddy from YSRCP.

The GO that issued Rs. 2 crore to Tuni Constituency TDP In-chargeYanamala Krishnudu, while the actual MLA is Dadisetty Raja from YSRCP.

Special Development Fund

No More!


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SDF has become Kuppam FundMeanwhile, Chandrababu Naidu has converted the SDF into a fund for

his own constituency. Now, the fund is being referred Kuppam Fund,

named after his constituency. Chandrababu government allocated Rs.

500 crore to this fund in the 2015-16 budget. Those funds were supposed

to be allocated to all the MLA constituencies. However, the Chief Minister

can use his discretion to make slight adjustments in the funds allocation.

However, Chandrababu Naidu used a major share of this fund, Rs. 273.50crore for his own constituency Kuppam.

With the GO 349, the state government allocated Rs. 136.13 crore

funds for the construction of pukka roads in Kuppam constituency. Later

the same constituency got Rs. 137.37 crore for construction of cement

roads in 582 habitats. Thus, the Chief Minister’s constituency got Rs.

273.50 crore SDF grants in a single financial year. This is more than the

amount allocated to the rest of the 174 constituencies put together!

The GO that allocated Rs. 2.1 crore funds to

Dhone constituency Telugu Desam Party In-charge K.E. Prataph

Irrigation Department regulations were set aside to make additional

payments to the contractor of Nellore Barrage. The orders were issued topay an additional amount of Rs. 22.68 crore to the contractor at the

behest of the Chief Minister. The state government did not back off

despite a serious objection from the Finance Department to this decision.

In the additional amount, Rs. 10 crore reached the government heads.

Rs. 10 crore‘Additional’ to Nellore Barrage


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The government wants to increase the costs of remaining works in 86,

87 packages of Vamsadhara Project Second Phase from present Rs. 90

crore to Rs. 429 crore. For this, the government weakened the rule which

makes the consent of the High Power Committee headed by the Chief

Secretary mandatory for all the works that are above Rs. 100 crore. As a

result, according to some bureaucrats, the Chief Minister and the

irrigation minister are going to pocket 50 % of the escalated cost i.e. Rs.214 crore.

Rs. 214 crore

Boon to Vamsadhara Contractors

The ruling TDP leaders made Rs. 100 crore by supplying sub-standard

provisions to people under the ‘Chandranna’s Kanuka’ scheme during

Sankranti festival of 2016. The government spent Rs. 270 per head and Rs

430 crore in total on this scheme. Though the contractors sourced yellow

lentils at a higher price and supplied inedible jaggery and wheat flour, the

government did not take any action against them!

The GO that issued funds for Chandranna’s Gift scheme

Chandranna’s KanukaRs. 100 Crore


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Rs. 200 crore

Lokesh Deal with MillersIn March 2015, the AP state cabinet took a decision to waive off VATdues to the tune of Rs. 500 crore which the rice millers were supposed to

pay by the date of state bifurcation. Apparently, Nara Lokesh was behind

this deal. He received 200 crore from this decision. The story behind this

decision is as following.

The state government pressurized the millers to pay the VAT dues

through the officials of Commercial Tax Department. At the same time,Lokesh sent a message to the millers that their dues could be waived off

if they were ready for a deal. The millers responded positively and added

one more demand to their list of wishes i.e. the complete waiver of VAT on

future rice exports. At the behest Lokesh, the government agreed to their

demand and the transaction has been closed successfully.

The Chief Minister insisted that the Kuppam canal branch works will

be awarded to TDP Kadapa district president, which was against the

existing rules. This decision was resisted by Principal Secretary of Finance

Department P.V. Ramesh. However, the Chief Minister prevailed over him

and gifted the contract worth Rs. 430 crore to his party man. Out of this

amount, the contractor is set to pocket Rs. 120 crore.

Rs. 120 croreKuppam Branch Canal Works only for Cronies

The TDP government, went against the regulations and had given the

Goddumarri barrage contract to its party MP C.M. Ramesh. Though theofficials were not in favour of this award, they could not withstand the

pressure of the MP and gave him the contract worth Rs. 88 crore.

According to Irrigation Department sources, the MP is set to benefit to the

tune of at least Rs. 25 crore.

Rs. 25 croreDaylight Robbery in Goddumarri


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Chandrababu Naidu is a byword for extravagance. He started

spending the tax payer’s money from the day one of his coming into

power. He started it by using charter planes for his oath-taking ceremony

and since then he never stopped his mindless spending spree.

Chandrababu always talks about the financial hardships that the new

state is facing, however, on the other hand he spends money like water.He has been spending crores of rupees on renovating the CM offices in

Hyderabad, Vijayawada and residential buildings in both the cities. He has

a luxury bus and a convoy of brand new cars, which even the country’s

Prime Minister doesn’t have. It seems Chandrababu thinks unmindful

spending of government money is his birthright and his extravagance

knows no limit. Irrespective of the need, he has been appointing

consultants for various tasks and paying them heftily. He also spenthundreds of crores on multiple groundbreaking ceremonies.

Following is the list of some of his

profligate spending-

On Charter Planes Rs. 30 crore

On CM office in Hyderabad Rs. 10 croreOn Madinaaguda Farmhouse and rented houses in Jubilee Hills Rs. 5.87 crore

On the special bus Rs. 5.50 crore

On groundbreaking ceremony of the new capital city Rs. 100 crore

On travels of the officials between Hyderabad and Vijayawada Rs. 120 crore

On foreign consultants who have prepared the documents of the capital city Rs. 150 crore

On temporary secretariat Rs. 300 crore

On the master plan of the capital city Rs. 15 crore

Total Rs. 736.37 crore

Babu’s Extravagance Costs the State

Rs. 736 crore


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❖ Ever since Chandrababu Naidu became the Chief Minister, he spent Rs.

736 crore on various expenses. He has created a record sorts in

travelling on special charter planes. Probably, there is no other Chief

Minister in the country who had made such through use of charter

planes. Whether the destination is Delhi, Hyderabad or a district

headquarter, Chandrababu travels only in special planes! Until

February 2016, the Finance Department had paid Rs. 15 crore for

plane charge dues and another Rs. 15 crore is due.

The GO that allocated the Rs. 10.20 crore for renovation of the CM’s Camp Office in Vijayawada

Chandrababu Naidu has spent Rs. 45 crore on refurbishing

of CM offices in Hyderabad secretariat and another Rs. 42 crore

on similar facilities in Irrigation Guest House and CM Camp

Office in Vijayawada. The state officials are at a loss why the

government has to spend such whopping amounts or repairswhile new buildings could be built with that that money.


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❖ The Chief Minster spent Rs. 10 crore on Lake View Guest House, Rs.

5.87 crore on Madinaaguda Farmhouse and rented houses in Jubilee

Hills.

❖ In another record of sorts, Chandrababu conducted the

groundbreaking ceremony of Amaravati city thrice. For the temporary

arrangements of these festivities, he spent another Rs. 100 crore!

❖ So far Andhra Pradesh government has paid Rs. 120 crore as travel

allowance and dearness allowance to the officials who have been

commuting between Hyderabad and Vijayawada.

❖ The government spent Rs. 150 crore only on preparing documents for

the new capital. It paid another Rs. 15 crore to Singapur based

consultant for preparing the Master Plan of the city.

❖ A lavish bus with a price tag of Rs. 5.50 crore was purchased for the

tours of CM in the state, which is in addition to the charter planes.

❖ For the preparation of Vision 2029 document, the state government

has entered into an agreement with Ernest and Young at a cost of Rs.

12.62 crore. Strangely, the government has paid mobilisation advance

of Rs. 1.12 crore to the consultancy. The mobilisation advance is

generally paid in civil contracts.

What if there was no Extravagance? The answer is simple. Andhra Pradesh could have got a permanent

Secretariat with that money. The new state so far has no permanentbuilding for its Secretariat. Chandrababu Naidu has recently started

constructing a temporary secretariat building and he is spending Rs. 300

crore on it. If he could control his unnecessary spending, he could have

built a permanent, world-class secretariat building.


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The nine-year rule of Chandrababu Naidu between 1995 and 2004

was an embodiment of corruption. He gifted away lands and contracts to

his confidants, benamis and party men despite widespread criticism. He

branded the public sector units as mad dogs and then killed them. The

assets of these units were sold to his stooges at cheaper prices. He

converted watershed and work guarantee schemes as the major source of

income of his party cadre. During his tenure as an ad hoc Chief Minister

before the 2004 Assembly elections, he allocated 800 acres of land of the

University of Hyderabad to a company called IMG Bharat. This allocation

was later cancelled by Dr. Y.S. Rajasekhara Reddy’s government.

After Chandrababu decided to build the Hitec City at Madhapur, he

tipped off Murali Mohan, now TDP MP from Rajahamundry, about its

location. Murali Mohan bought all the lands he could around that area

and developed several real estate ventures. Chandrababu used same the

model in case of Amaravati and is making several times more money.

In liquor purchases too, he bent rules for three companies. According

to a report of Vigilance Department, the state lost Rs. 600 crore between

1995 and 2004 because of the policies of Chandrababu Naidu. There was

not even a single project that was awarded without taking commissions

during his first spell.

From the day one, Chandrababu has been gifting away the lands to his

friends, confidants, party men, benamis and stooges. Despite the resistance

from opposition parties, he allocated golf course land in Manikonda and 534

acres land to EMR Properties. Though there was no need, he gave away

17,434 acres of land to industrialists during his tenure and its value is about

Rs. 1.60 lakh crore.

Public sector ruinedIf you want to kill a dog, first brand it a mad one and then kill it.

Chandrababu applied this formula and killed several public sector units in

the state successfully. He first made them sick and then sold them away

at throwaway prices. While the value of lands of Hyderabad Allwyn wasRs. 150 crore, Chandrababu sold it away for just Rs. 3 crore. He also ripped

off Nizam Sugars, which offered a supporting system to the farmers since

Nizam’s times. Thus, he sold the public sector units worth of Rs. 636 crore

for Rs. 203 crore. According to some officials who worked in government,

he pocketed a good amount of the money from these transactions.

Scams between 1995-2004

Chandrababu Previous regime


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Scams list - 1995 to 2004

Scam Worth in Rs. (in Crores)

Counterfeit Stamps Scam 5000

Deposits in Urban Banks that were closed 2000

Watershed Scheme Scandal 2000

Gains from Water and You Scheme 1600

Liquor policy favouritism 600

Food for Work Scheme Scandal 560Sale of lands of public sector units 400

Land allocated for tourism projects 350

Somasila lands scam 112

Eleru scam 100

Scholarships scam 100

Land allocation to cement factory in Vijayawada 55

Land allocation to Rahejas in Madhapur 50

Timers’ scam 30

Chief Minister’s Relief Fund 10


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Details of Land Gifting

Company Land Worth in Rs.

(in acres) (in Crores)

Shamshabad Airport 5500 79860

IMG Bharath 850 16456

EMR Properties 535 10367

Beachsand Trimex 1700 10000Vizag Pharma City 2143 10372

Krishnapatnam Port 2000 9680

Gangavaram Port 1800 8712

Raheja Group 109 280

Agakhan Foundation 100 1936Kakinada Port 354 1713

Hitec City (All Phases) 80 1548

IVRCL 50 968

Microsoft 42 813

Wipro 30 580Computer Associates 30 580

Malaysia Township 35 508

Maheswaram Hardware Park 18 348

Madhapur IT Park 9 174

Singapore Township 80 193

Dabur 1000 100

Orient Cements 820 8

Total 1735,434 1,59,900


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Corruption in the Sale of PSUs

Company Market Value Sold Value Rs.

(in Crores)

Allwyn Sanathnagar unit 150 3

Republic Forge Company 30 16

Nizam Sugars 120 55

Madhuranagar Sugar Ltd. 40 22.50

Lachhayyapet Sugar Mill 40 21.45

Montojapally Distillery 18 10

Chagallu Distillery 20 9

Co-operative Mills

Hanuman Junction Sugars 30 11.4

Nandyal Sugars 20 6.01

Palakollu Sugars 10 3.3

Gurajala Sugars 14 5.27

Hindupur Sugars 20 8

Inkollu Cotton Mill 30 4.59

Adilabad Cotton Mill 12 8

Nellore Cotton Mill 32 12.23

Edlapadu Cotton Mill 50 7.50

Total 636 203.35


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The Telugu Desham Party in Andhra Pradesh has

brazenly started ‘Operation Akrash’ whereby MLAs from

our party are being poached on day to day basis using

Carrot and Stick policy. If they join TDP, they are paid a

minimum of Rs 20 to 30 crore, the lure of ministerial

berths to our MLAs who got elected on our party B Form

and symbol. Chandra Babu Government has so for

poached 12 of our MLAs out of our strength of 67 in total.

Such blatant display of ill-gotten money is not being

questioned while the “Anti Defection Law” what is part of

our constitution is being mocked in broad day light and yet

our democracy remains silent.

Making mockery of democracy once again as never

done in the past, the MLAs who were given constituencydevelopment fund are denied these constituency

development funds and by suspending the Constituency

Development Fund usually operated by MLAs, the Chief

Democracy in Danger!

YSRCP MLAs Bhooma Nagi Reddy, Bhooma Akhila Priya, Jaleel Khan, Adinarayana

Reddy and MLC Narayana Reddy Joining TDP Party in Presence of Chandrababu

Naidu at CM Camp Office in Vijayawada on February 22, 2016.


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Minister has been granting official works in various

Assembly Constituencies by creating Special Development

Fund either to TDP MLAs, where they are there or in the

name of defeated candidates of TDP in the constituencies

which are represented by YSRCP. The Government is

directly issuing GO’s on their names showing them as

constituency in-charge while denying constituency

development funds to YSRCP MLAs.

The TDP is conveying a direct message ‘If you are with

us, there is heaven or else you are in hell’. So far, as many as

12 MLAs and one MLC have openly defected to TDP luredby money and power and what

is worse is that the Chief

Minister and his colleagues in

cabinet are giving statements

that they would welcome all

the MLAs of the opposition with

open arms while assuring themthat they would not be

disqualified.

Chandrababu is known for

his direct role in the Cash for

Vote case. In the recently

concluded election to the

Telangana Legislative Council,with an intention to get is nominee elected though the TDP

didn’t have required majority, N Chandrababu Naidu had

stoop down to such a heinous level which is unbecoming of

a political leader let alone a Chief Minister. Embolden by the

abundant ill-gotten money amassed through corruption, he

tried to purchase a TRS MLA by offering lots of money

through one of his trusted lieutenants Mr. Revanth Reddy. In

this process he was caught red-handed in audio and video

tapes. To come out of this Cash for Vote case he had

compromised with the Telangana Chief Minister by

mortgaging the interest of Andhra Pradesh thus causing

YSRCP Badvel MLA Thiriveddi Jayaramulu Joining in TDP in Presence of CM Chandrababu

Naidu in Vijayawada on February 29, 2016 .


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irreparable damage.

When we try to raise these issues in the Assembly, our

Members are suspended and threatened in complete

violation of Business Rules. The Hon’ble Minister for

Legislative Affairs says that Business Rules have no value

and citing the provisions of Art 212 of the Constitution, he

says that no court can call into question any act in the

assembly if it is in gross violation of rules and constitutional

principles of natural justice.

In the just concluded Budget session, when we gave

notice for the No Confidence motion against the Council of Ministers, the item was taken up

just then giving the

opportunity to the defectors

to say that they had no time to

follow the whip.

Similarly, when we gave

notice for Removal of Speaker71(1) of The Procedure and

Conduct of Business in the A P

Legislative Assembly read with

Article 179 (C) of the

Constitution of India, the

Speaker took up the matter for

discussion on the same day of notice by suspending the Rules. While Article 179 (C) of

the Constitution clearly specifies that no discussion on

removal of Speaker can take place without lapsing 14 clear

days. The Assembly Business Rules are subordinate to the

Constitution, despite which it was flouted with impunity,

just to protect the defectors from the whip.

Yet another instance is the division on the

Appropriation Bill 2016. Our Party gave advance intimation

to the Speaker that we are opposing the Appropriation Bill

and that we demand division, despite which, just as in the

YSRCP MLA from Yerragondapalem Palaparti David

Raju Joining in TDP in Presence Of CM Chandrababu

Naidu in Vijayawada in February 28, 2016.


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case of Uttarakhand, the Bill was declared passed with

voice vote and without division inspite of our protest and

asking. We wonder whether there is any rule of law in the

State?

The Parliament enacted anti defection law by way of

52nd Constitutional amendment in 1985, which added the

Tenth Schedule to the Constitution with the main intent to

curb the evil of political defections motivated by lure of

office or other similar considerations which endanger the

foundations of our democracy. Not satisfied with the

functioning of the Tenth Schedule, the Parliament amendedthe law by way of 91st

Constitutional Amendment in

2003 removing the exemption

available to bulk defections

constituting one third

legislators of a political party.

Now, even if 100% of Membersof a Legislative Party defect to

another political party, all such

members have to be

disqualified, unless the original

political parties decide to

merge.

Despite such a tough law,the anti-defection law is being flouted with impunity day in

and day out by our state assembly. As many as 12 out of the

15 elected MLAs belonging to TDP have crossed over to

ruling TRS at different periods of time in the present house.

One of them was even made a Minister in Telangana. No

action has been taken by the Telangana assembly in

pursuance of the provisions of Tenth Schedule so far. All of a

sudden, the Speaker Sri S. Madhusudana Chary on 10th

March 2016 merged the 12 Telugu Desam MLAs who have

defected to the TRS in TRS as they constituted more than

YSRCP Jaggampet MLA Jyotula Nehru Joining TDP

in Presence of AP CM Chandrababu Naidu in

Vijayawada on April 4, 2016.


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two-thirds of TDP Legislative strength in the Assembly and,

according to him, this did not invite anti-defection

provisions. This is a strange ruling!

While TDP supremeo shouted a hundred times from

roof tops about the blatant violation and inaction on the

part of the Speaker of Telangana Assembly in recent

events, he himself has started the same unethical and

unconstitutional act of encouraging defections from YSRCP

to TDP by admitting with a great fanfare 4 YSRCP MLAs and

one MLC on 22nd Feb 2016. The figure has gone up to 12

MLAs now. The ruling TDP is openly talking aboutmasterminding some more

defections with ill-gotten

wealth and lure for ministerial

berths, without any sense of

remorse. What will happen

next

Documents

Chandra Babu - Emperor of Corruption