BRS Working President and MLA K T Rama Rao interacts with the media in Hyderabad, Telangana.
Credit: PTI File Photo
Hyderabad, DHNS: In a twist to the ongoing controversy around 400 acres of land in Kancha Gachibowli of Hyderabad, the opposition BRS leader, K T Rama Rao on Friday suspected a Rs 10,000 crore financial fraud by the chief minister, A Revanth Reddy in connivance with a BJP MP.
KTR on Friday (April 11) alleged that though the said land doesn’t belong to Telangana Industrial Infrastructure Corporation (TGIIC), it mortgaged the land to ICICI bank and secured Rs 10,000 crore loan in the form of bonds.
Talking to reporters, KTR alleged that the bank relied solely on assurances from Trust Investment Advisor Pvt. Ltd., a broker company that was paid Rs 169 crore by the state government as a commission. Another entity, Beacon Trusteeship, was allegedly used as a front to execute the transaction.
KTR questioned the bank’s decision to approve the loan despite knowing the land was under litigation, calling it a “fraudulent act” that warrants investigation.
KTR said he would be writing to RBI, Serious Fraud investigation Agency and other central agencies to probe the alleged financial scandal. KTR alleged that a BJP MP played a central role in facilitating the scam by introducing Trust Investment Advisor Pvt. Ltd. to the state government. He claimed that the MP’s involvement was the sole reason ICICI Bank approved the loan, despite the land’s disputed status. “This BJP MP will be named soon. The state government has promised undue benefits to him through this deal,” KTR said, warning that the central government’s inaction would confirm a BJP-Congress nexus.
KTR highlighted a glaring discrepancy in the land’s valuation.
“Initially, the government valued the 400 acres at Rs. 30,000 crore, issuing a Government Order (GO) in June 2024 that pegged the per-acre value at Rs. 75 crore. However, five months later, in November 2024, a new valuation by another agency reduced the per-acre value to Rs. 52 crore, and a subsequent open-market assessment further slashed it to Rs. 41.6 crore, bringing the total value down. What is the rationale behind this drastic reduction. It was a deliberate move to facilitate the transfer of the land to Revanth Reddy’s associates at a fraction of the inflated value,” he added.
Citing the stamps and registration department, KTR noted that the market value in the Kancha-Gachibowli area is Rs. 26,900 per square yard, translating to a total value of Rs 5,207. 84 crore for 400 acres.
“How can land worth Rs 5,207. 84 crore be inflated to Rs. 30,000 crore and then conveniently reduced to Rs. 16,640 crore? This is a textbook case of financial manipulation,” he charged.
KTR directed scathing criticism at ICICI Bank, accusing it of gross negligence in approving the Rs. 10,000 crore loan without verifying land ownership or conducting basic due diligence. “ICICI Bank has lost all credibility. How can a bank of its stature release such a massive loan based on a broker’s word, without inspecting the land or checking documents? This is not just incompetence—it’s complicity,” he said. He warned that the bank’s reckless lending could lead to its downfall, predicting a “collapse” if such practices continue.
The BRS leader alleged that the bank relied solely on assurances from Trust Investment Advisor Pvt. Ltd., a broker company that was paid Rs. 169 crore by the state government as a commission. Another entity, Beacon Trusteeship, was allegedly used as a front to execute the transaction. KTR questioned the bank’s decision to approve the loan despite knowing the land was under litigation, calling it a “fraudulent act” that warrants investigation.
Adding a political dimension, KTR alleged that a BJP MP played a central role in facilitating the scam by introducing Trust Investment Advisor Pvt. Ltd. to the state government. He claimed that the MP’s involvement was the sole reason ICICI Bank approved the loan, despite the land’s disputed status. “This BJP MP will be named soon. The state government has promised undue benefits to him through this deal,” KTR said, warning that the central government’s inaction would confirm a BJP-Congress nexus.
KTR accused the state government of bypassing the Financial Reporting and Monitoring (FRBM) framework to secure the loan, with the broker company demanding a commission for arranging the funds. He questioned the selection process for Trust Investment Advisor and Beacon Trusteeship, demanding transparency on the rules followed. “Did they get the deal because a BJP MP recommended them? The government must answer,” he said.
KTR alleged that the Rs. 10,000 crore loan, touted as funding for farmer welfare schemes like Rythu Bandhu, was misused to pay commissions and bills to contractors and loyalists in the Congress cabinet. “They claimed Rs. 5,000 crore went to farmers, but even that is doubtful. Where is the remaining Rs. 5,000 crore? It’s been siphoned off to their cronies,” he said.
ICICI reaction
However ICICI Bbank said TGIIC had not mortgaged any land with them and not provided any mortgage loan to TGiIC.
“We would like to clarify that we have not provided any mortgage loan to Telangana State Industrial Infrastructure Corporation (TSIIC), and TSIIC has not mortgaged any land with us in relation to this bond issuance. We acted only as an account bank to TSIIC for receipt of bond issuance money and interest servicing,” said the bank in a statement in response to KTR’s allegations.