The True Story of CBN

8/3/2019 The True Story of CBN

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The True Story of Andhra Pradesh Ex CM Mr 420 Nara Chandrababu Naidu :

In 1978, when Chandrababu Naidu became MLA for the first time, he was owning just two-acre land in

Naravaripalle village in his native Chittoor district. He did not own even a car and, infact, his first car, an

Ambassdor was gifted by his father-in-law late chief minister NT Rama Rao. From here, till 2004 before

he was ousted by the Congress in the hustings,... Chandrababu earned thousands of crores through

dubious means.

When Chandrababu entered politics his father, owner of two acre land, was eking out his livelihood by

farming. His mother used to support the family by selling milk and curd in the surrounding villages of

Naravaripalle. His brother, Rammurthy Naidu, a former MLA, used to repair electric motors.

After his father-in-law NT Rama Rao became chief minister, Chandrababu had set up Bhuvaneswari

Carbides in 1984-85, but that turned out to be a mis-adventure.

In 1988, Chandrababus annual income was Rs 36,000 and in a decade it went up to Rs 19.29 crore.

Chandrababu, in a document submitted to Company Law Authorities claimed that he had no businesses.

Then, how did he earn crores of rupees is a big question. In the affivadit submitted to ElectionCommission in 2009, Chandrababu declared that his wife and he together have assets worth Rs 51 crore.

There is nothing new in the friendship between politicians and corporate world. But, why did

Chandrababu drag late chief minister YS Rajasekhara Reddy and his son YS Jaganmohan Reddy into the

corporate war between two mining companies? Why is he spitting venom against the late chief

ministers son?

In 2004, people taught Chandrababu a lesson by showing him his place when he tried to describe

Rajasekhara Reddy a factionist? In 2009, he talked about so-called corruption, but people did not believe

him. With the untimely and unfortunate death of Rajasekhara Reddy, Chandrababu believed that the

field is wide open to him. But, the unstinted support of masses to Jaganmohan Reddy is driving the TDP

president crazy. Unable to digest this, Chandrababu and his media syndicate is now desperately trying tomalign the image of Jaganmohan Reddy.

His nine-year rule as chief minister (1995 to 2004) was a saga of corruption. He never ordered CBI

inquiry into any of the scams that surfaced during his regime as he was a direct beneficiary. His present

friend and foe in 2004 elections, CPM in a conservative assessment estimated that the scams during TDP

regime would worth Rs 12,367 crore. There could be another Rs 10,000 crore worth scams, which could

not be exposed. He always relied on Gobellsian propaganda in promoting his image and to cover up his

follies.

"Here just a tip of his corruption ice berg"

LIQUOR SCAM: One of the major scams of Chandrababu Naidu was the liquor scam in which Rs 600

crore tax payers money was paid to three liquor manufacturing companies in excess between 1997 and

2000. State Vigilance and Enforcement Department gave a detailed report on how Babu regime bent the

rules to favour the three companies and how others were denied sale in AP. (In fact The Hindu then

wrote a front page piece on the scam too). An important file pertaining to the scam was literally

consigned to flames by Chandrababu, who later went on to obtain a stay from the High Court on

technical grounds so that he would not be examined.


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YELERU SCAM: Unprecedented corruption took place in land acquisition and compensation to the

displaced in Yeleru canal works. Role of a judge and several TDP leaders was alleged in the scam worth

Rs 100 crore. Court even faulted four senior IAS officers, but Babu regime did not take any action against

them. Justice Somasekhara Commission could not complete the inquiry as Babu and his men created

several legal hurdles for it making it impossible for the commission to function.

MANGANESE MINES LEASE: Chandrababu government leased out 223.84 acre manganese mines in

Vizianagaram district to SK Swaragi & Co in February 2001. Interestingly, the same mines were leased to

AP Mineral Development Corporation in 1999 for a period of 10 years. To help Swaragi, the state

government cancelled the lease agreement with APMDC. Obviously money changed hands in the deal.

LAND ALLOCATION TO IMG BHARATHA: This is the biggest of all scams. Though being a care-taker chief

minister, Chandrababu allocated 400 acres land in the prime Gachibowli locality in Hyderabad at Rs

50,000 per acre as against the market value of over Rs 2 crore per acre. This land belonged to the

University of Hyderabad. Chandrababu played a key role in chosing Billi Rao and Prabhakar Rao, in the

scam and used them as a front to siphon away money.

L&T SCAM : L&T had been Chandrababus pet company. Within four days of swearing-in as chiefminister on Sept 1, 1995, Chandrababu allotted 148 acre land in the upmarket Madhapur area to L&T.

Within one year, he allocated another 18 acres and subsequently another 78 acres had been allocated

to the company. The then joint collector submitted a report to the state government stating that about

100 acres land had been encroached upon by L&T. But, the report was swept under the carpet.

RAHEJA IT PARK SCAM : 100 acres land was allotted to Raheja IT Park for peanuts in the costly

Madhapur area. About Rs 50 crore changed hands in the deal.

EMMAR PROPERTIES: Chandrababu allotted 700 acre land to EMMAR Properties at throw away price.

Congress party leveled serious allegations of corruption in the deal and demanded a CBI probe. But, true

to his style, he never agreed for a probe into the deal. Violating all conditions, EMMAR Propertiesdivided the land into plots and sold them. Surprisingly, Chandrababus daughter-in-law also owns a plot

in EMMAR Properties.

KAKINADA PORT: Chandrababu entered into a deal with the then Malaysian prime minister Mahathir

Mohammed. His son Farzan Ahmed floated Kokanada Sea Ports and here too L&T joined the

consortium. Besides, some TDP leaders also joined the projects and it is no secret that they were

Chandrababu benamis. The TDP regime allocated 168 acres at throw away price. In return, Mahathir

Mohammed facilitated Chandrababus investments in hospitality industry in Malaysia.

HERITAGE FOODS: This is family concern set up near Chandragiri in his native Chittoor district. It would

have been an ordinary business not drawing anyones attention, but for the fact that Chandrababu

made amendments to the dairy policy in the state. The amendments were such that they suited

Heritage Foods while badly hitting the cooperative dairy sector. The classic case is the prestigious

Chittoor Dairy which was floored by Chandrababu to the benefit of his company.

While other dairies in the state increased milk procurement price due to shortfall in milk production,

Chittoor dairy was forced to reduce the milk procurement price. As a result, farmers in Chittoor district

sold milk to Heritage Foods for better price. In 1994-95, Chittoor dairy milk procurement has come come

down to 76,000 litres per day from two lakh litres. Tirumala Tirupati Devasthanams too stopped buying


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ghee from Chittoor dairy resulting in a loss of revenue of Rs 1.3 crore per month. Milk supply to Chennai

and Bangalore was also stopped and Chittoor dairy was bleeding to death.

Though National Dairy Development Board came forward to revive Chittoor dairy, Chandrababu

government refused to chip in with 50 per cent contribution. That was the final nail in the coffin.

Chittoor dairy was closed while Heritage was earning fat profits. The Dairy was revived only after

Congress returned to power in 2004.

The other dimension to the Heritage Scam is floating of several benami companies by Chandrababu

&Co. Obviously, these are unlisted companies and shares worth Rs 1.32 crore in the name of his wife

Bhuvaneswari are in these companies. There is no way one can examine where-all these unlisted

companies invested and their worth. At the same time, there is a need to expose the volume of

unclaimed deposits in Margadarsi. There are allegations that Chandrababu has a major stake in the

unclaimed deposits.

DUPING THE INVESTORS: Heritage Foods, a listed company had 3 acre land in Madhapur, which is worth

Rs 100 crore. To grab the land, Chandrababu floated Heritage Infra, a subsidiary company. In this

company, Chandrababus wife has 28 per cent stake while his benami Nagaraju Naidu has 21 per cent.Susequently, the Rs 100 crore worth land of Heritage Foods was transferred to Heritage Infra for a mere

Rs 2.73 crore and thus duped the investors of their share. Once the operation was completed, Heritage

Foods withdrew its 51 per cent stake from Heritage Infra and the same was bought over by Sri Chakra

Merchandising Limited for Rs 35.69 crore. This is a benami company of Chandrababus frontman Sujana

Chowdhry. That is how, Chandrababu transferred investors money into his pocket.

GMR AIRPORT: Chandrababu allocated 5,500 acre to GMR for the construction of airport at

Shamshabad. Using his clout in the NDA government, Chandrababu extended various concessions to

GMR. Besides, Chandrababu and his gang purchased huge tracts of land in the vicinity of airport and

made profits. Initially, he conspired to have the airport near Ramoji Film City so that his media guru

would be benefited, but central government turned down the proposal. He also unsuccessfuly tried toconvince GMR to make L&T a stake holder in the airport.

KAKINADA SEZ: Kakinada SEZ is another major scam of Chandrababu. Much hype was created by TDP

regime that ONGC would be part of the SEZ. After money changed hands, the location of Kakinada SEZ

was changed to benefit the real estate lobby and also to the SEZ promoters. Role of TDP leaders was

strongly suspected in the deals and obviously Chandrababu has benami holdings in the project.

ASSOCIATION WITH SATYAM: Scam tainted Satyam Computers had been Chandrababus blue-eyed

company. The TDP president turned his back on Satyam soon after the scam surfaced.

Documents

The True Story of CBN