KTR alleges scam in PM Unity Mall Tender

Metro India News | Hyderabad 

BRS working president K. T. Rama Rao has alleged serious financial irregularities and a massive scam in the tender process for the proposed PM Ekta (Unity) Mall at Raidurg, Hyderabad, and demanded the immediate cancellation of the tender and an independent investigation into the entire transaction.

In a strongly worded letter to Union Finance Minister Nirmala Sitharaman, KT Rama Rao urged the Centre to immediately stop further release of funds for the project and intervene before any irreversible decisions are taken. He alleged that the Congress government in Telangana, headed by Chief Minister Revanth Reddy, had framed questionable tender conditions that could result in disproportionate benefits to a private developer at the cost of public resources.

The BRS working president said the proposed project has an estimated cost of approximately Rs 2,059.81 crore, excluding the value of land, and has received around Rs 202 crore in Central assistance. The project is proposed on approximately 6.30 acres of prime land at Raidurg, with around 27 lakh square feet of built-up area, he said. The biggest concern, KTR said, relates to the distribution of commercial space. While the government's minimum share in the project is only around 9 lakh square feet, the private developer is entitled to a minimum of 18 lakh square feet. KTR questioned how a private developer could receive at least twice the Government's minimum built-up area in a project being developed on valuable public land with substantial Central financial assistance.

The BRS working president demanded that the Congress government explain why such extensive commercial rights have been provided to a private developer when the project involves valuable public land and Central financial assistance. He questioned whether Telangana is receiving adequate value in return for the public resources being committed to the project.

KTR also raised serious questions over the project's financial model. He pointed out that the Rs 200 crore interest-free loan sanctioned under the Special Assistance to States for Capital Investment (SASCI) scheme for the PM Unity Mall is proposed to be routed through the Telangana Trade Promotion Corporation Limited (TGTPC) to the selected developer on a back-to-back basis.

KT Rama Rao further alleged that the tender framework allows expenditure already incurred on project preparation, consultancy, surveys, approvals and site preparation to be adjusted from the funds. He said such an arrangement requires independent scrutiny before any further public money is released.