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KVP, Rosaiah to face CBI heat

Posted by on August 12, 2011 0 Comment

It’s not just the Kadapa MP, Mr Y.S. Jagan Mohan Reddy, who might be hit hard by the CBI probe into the Emaar scam.

Other prominent politicians including Dr K.V.P. Ramachandra Rao and the former chief minister, Mr K. Rosaiah, might also be pulled up.

With the AP High Court taking two aspects in the Emaar scam seriously — the dilution of state equity and undervaluation of the properties while selling plots to prominent personalities — it is likely that the two leaders will be questioned by the Central Bureau of Investigation.

The High Court, while referring to the CBI report, had stated that some known and unknown public servants had abused their official positions by corrupt and illegal means knowingly and intentionally thereby causing wrongful loss to the APIIC.

Inquiries revealed that it was the Group of Ministers led by Mr Rosaiah that took the decision to split the joint-venture companies in the Emaar project from two to three, thereby diluting the state equity in these projects. The Andhra Pradesh Industrial Infrastructure Corporation had 49 per cent stake in the Hyderabad International Convention Centre and hotel project.

The Rosaiah Committee, which was constituted to vet certain infrastructure and industrial projects that had been granted by the Telugu Desam government but encountered by YSR, as he was the Opposition leader, had recommended reducing the equity to 26 per cent.

There’s also enough reason for Dr Rao to be questioned by the CBI. Both his wife and his brother-in-law, Mr K. Raghuramakrishnam Raju, had bought plots for only Rs 5,000 per sq. yd from Emaar. “The CBI will ascertain whether the payments were real and whether any undervaluation took place,” said a official.

Another important aspect the CBI will look into is the relation between Dr Rao and Mr Parthasarathy, one of the two nominees of APIIC on the board of Emaar Hills Township Limited. A brother-in-law of the former adviser, Mr Parthasarathy was one of the APIIC functionaries criticised by the High Court for failing to discharge their responsibilities.

Mr Parthasarathy, along with the then APIIC MD, Mr B.P. Acharya, were party to the EHTPL’s decision to enter into the development-cum-general power of attorney agreement with Emaar MGF.

Neither the state government nor the APIIC board was informed of the agreement that denied the state its due revenue.

CBI revelations

*CBI report reveals that some known and unknown public servants abused official position and caused loss to APIIC.

*GoM led by former CM K. Rosaiah effected the first reduction of APIIC equity from 49 per cent to 26 per cent.

*Former adviser K.V.P. Ramachandra Rao’s kin owned plots, the price of which is undervalued, say the agencies.

*B.P. Acharya and Parthasarathy Rao, a relative of KVP, are the board members of Emaar-APIIC joint venture. Deccan Chronicle

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