Insolvent firm under Supreme Court radar linked to Revanth got govt contracts: KTR

Hyderabad: Alleging that an insolvent company acting as a benami for Chief Minister A Revanth Reddy has been awarded government contracts worth Rs 6,000 crore over the past two years, BRS Working President KT Rama Rao (KTR) demanded their immediate cancellation.

Talking to reporters on Wednesday he accused Revanth Reddy of misusing thousands of crores in public funds by diverting them to his alleged benami entity, KLSR. KTR called for blacklisting the company and canceling all ineligible contracts.

Despite its insolvency, he claimed, KLSR secured projects worth nearly Rs 6,000 crore under the current administration including AMRUT Scheme works, Jal Jeevan Mission, Young India Residential Schools, Telangana irrigation projects, and road development.

He questioned how a financially distressed firm, insolvent since 2023 and unable to pay even Rs 15 lakh in employee salaries, could furnish massive bank guarantees for contracts from 2024 to 2026—especially in the Municipal Administration Department and the Chief Minister’s own constituency. KTR urged Revanth Reddy to explain these awards.

KTR asserted that KLSR had been operating as a benami company for Revanth Reddy from the very beginning and that the links between the Chief Minister and the firm were well-known. He said the Supreme Court had recently issued notices to the Telangana government seeking clarification on large-scale financial transactions continuing in the company despite its insolvency proceedings, as well as allegations relating to attempts to influence judicial processes.

According to KTR, fearing that his benami operations would be exposed, Revanth Reddy orchestrated what he termed a political drama from Davos under the guise of forming a Special Investigation Team (SIT) in order to divert public attention.

KTR demanded that an immediate investigation be launched into the company and that all operations of the insolvent firm be halted until the probe is completed. He further called for the company to be blacklisted and for all contracts allegedly secured without eligibility to be cancelled.

KTR recalled that enforcement agencies had carried out raids on KLSR in 2018 and that the media at the time had reported links between the company and Revanth Reddy, who was then the PCC president. Despite the firm subsequently entering insolvency proceedings at the National Company Law Tribunal (NCLT), KTR alleged that the Chief Minister, after assuming office, facilitated the award of major government contracts to the company.

He further said that Income-Tax raids were conducted on relatives of Revanth Reddy on September 27, 2018, during which transactions between Sai Mourya Estates and KLSR were unearthed. According to him, funds from Bhopal Infra and Sai Mourya were traced to accounts linked to relatives of the Chief Minister.

KTR further said that in July 2023, disputes between KLSR and another company led both parties to approach the National Company Law Tribunal. Subsequently, KLSR filed a Corporate Insolvency Resolution Petition, after which financial transactions were restricted.

He alleged that attempts were later made to exert pressure on an NCLT judge through a senior judicial intermediary, prompting the judge to recuse himself from the case after disclosing the matter.

KTR claimed that Revanth Reddy was the key figure working behind the scenes to secure favourable rulings for the company, citing the firm’s alleged financial dealings with Sai Mourya, a company linked to the Chief Minister’s brother-in-law. He alleged that funds were routed through KLSR to acquire large tracts of land and reiterated that enforcement agencies had previously recovered evidence during their investigations.

He demanded that the Chief Minister explain how such a financially distressed company was awarded contracts of this magnitude, particularly in the Municipal Administration Department and in the Chief Minister’s own constituency.

KTR added that Supreme Court also issued notices seeking investigations by the Central Bureau of Investigation (CBI), the Serious Fraud Investigation Office (SFIO) and the Enforcement Directorate (ED).

He alleged that in order to divert attention from these notices, Revanth Reddy orchestrated a political spectacle using SIT notices relating to telephone tapping cases involving BRS leaders, including Harish Rao, Santosh Rao and party chief K Chandrashekar Rao.