The Andhra Pradesh cabinet has cancelled the allotment of 487 acres in Kadapa district to a company owned by Chief Minister Y S Rajasekhara Reddy’s son.

This move comes in the wake of the government’s decision to order an enquiry into the issue following severe criticism by the opposition.

To disprove the opposition’s allegations that the government land was given at less than market rate, the cabinet decided to auction the land with the starting price at Rs 50,000 an acre. The government maintains that the market rate is Rs 15,000 – Rs 18,000 and that the government had allotted it at Rs 1 lakh an acre to Raghuram Cements to prevent criticism. The CM had told the Assembly recently that his son would withdraw from the auction in case any bidder quoted more than Rs 1 lakh an acre.

However, the opposition has dismissed the move as “nothing but drama” saying that no one would “dare” to take on the CM’s son in their home district. TDP leader N Janardhan Reddy said that not a single Dalit family came forward to accept the 300-add acres in Edupayala village owned by the CM which he “surrendered” to the administration.



The controversy

A cabinet meeting on March 29 had agreed to allot 487 acres to Raghuram Cements owned by the CM’s son Y S Jaganmohan Reddy to set up a cement factory and a township that would create employment for 4,000 persons. However following criticism, Jaganmohan returned the allotment letter in three days. Dismissing charges of corruption, Y S R said, “If we do anything, they (TDP) say it is corruption. If they do anything they say it is development.”



He threw a challenge to his critics to participate in the auction. “My son’s company will also participate but will not purchase if the land is auctioned for more than Rs 1 lakh per acre,” he said. The government will soon bring out a notification to auction the land.

The he had advised his son not to do business in Andhra Pradesh as he was in public life and “opposition will not let go to any opportunity to tarnish his image”.

Dismissing TDP charges of corruption, YSR said, “If we do anything, they (TDP) say it is corruption. If they do anything they say it is development.” He threw a challenge to his critics to participate in the auction. “My son’s company will also participate but will not purchase if the land is auctioned for more than Rs 1 lakh per acre,” he said. The government will soon bring out a notification to auction the land.

Meanwhile, two loyalists of the CM, U Arun Kumar, MP and G Veerasiva Reddy, MLA have promised to quit politics and the Assembly respectively if the opposition proved that the allotment of the land was dubious in any manner. They dismissed the allegations that the land in two villages had been forcibly acquired from the owners.