Metro India News | Hyderabad 

The management of Leonio Resort (LMIPH Ltd) located at Bommarasipet in Shamirpet mandal, Medchal district, is facing serious allegations of illegal encroachments, misuse of political influence, and unauthorized activities. Locals have accused the management of forcibly occupying private plots, intimidating landowners with armed security personnel, and attempting to take ownership of leased properties.

Residents allege that the resort management, reportedly backed by ruling party leaders, has been using its influence to suppress dissent. Private individuals claim that their plots were encroached upon and that false cases were filed against them when they questioned these actions. The involvement of former Chevella MP Ranjith Reddy as one of the directors is said to have ensured the management faces no resistance from authorities.

The resort, which is not a gated community, was initially developed as a residential venture by a private developer who later sold several plots. The new owners allegedly took control of 32 plots within the premises and have been using them unlawfully. Despite the rightful owners building boundary walls and locking gates, the resort management reportedly broke them open and occupied the land. Victims say security guards, including ex-servicemen, have been threatening them with firearms.

Achyut Institute Secretary Kapil Kumar Sharma, one of the affected individuals, stated that he leased out 66,531 sq. ft. of land to Leonio. After the lease expired in September 2024, the management refused to vacate. When he demanded the property back in March 2025, an FIR was filed against him. It is alleged that police acted under political pressure, ignoring his complaint for several months, and only registered an FIR on April 25.

Sharma also leased 1.20 acres in 2009 for an STP facility to Leonio. Under the new management led by Ranjith Reddy, the resort began claiming ownership of that land and issued legal notices against him.

Recently, the victims met a local Congress leader and explained how they were being harassed and denied entry to their plots. The leader reportedly contacted a senior police officer, who mentioned that the Chief Minister’s Advisor was involved in the issue, prompting strong objections from the Congress leader over political interference.

Another major allegation concerns the illegal diversion of Mission Bhagiratha water. The resort management allegedly laid a five-kilometer-long underground pipeline from the Collector’s office through the R&B road to the resort without any permission. Officials reportedly failed to act despite visible road damage, allegedly due to political pressure.

As a result, nearby villages — Bommarasipet, Ponnala, Uddemarri, Babaguda, and Adraspalli — are facing severe drinking water shortages. Residents allege that water is illegally supplied to the resort every night between 9 PM and 6 AM, while surrounding villages remain dry.

Leonio’s parent company was taken over by the National Company Law Tribunal (NCLT) after defaulting on bank loans of Rs 2,218 crore. Despite its assets being valued at Rs 2,400 crore, it was allegedly acquired by JPEL Company for just Rs 237 crore, raising questions of a major financial irregularity.

Individuals including N.V. Ramaraju, Gaddam Ranjith Reddy, Anagandula Tirupathi Reddy, and Praveen Rao are said to be behind the acquisition. Documents submitted by N.V. Ramaraju stated that he would arrange funds by selling lands in Visakhapatnam — 12,700 sq. yards worth Rs 190.5 crore at Daspall Hills and 5,192 sq. yards worth Rs 90.86 crore at Waltair Ward. However, one of these lands was reportedly government property and the other under court dispute. The bank’s Resolution Professional allegedly ignored these details. Observers say a detailed investigation into the NCLT sale could expose a large-scale scam.

Kapil Kumar Sharma said, “Ranjith Reddy and his partners are trying to forcibly take over my property. Despite having all valid documents, I am being harassed with false police cases. Authorities are acting under pressure.”