Telangana govt to pursue CBI investigation in Kaleshwaram scam after High Court relief

Hyderabad: The Telangana government has decided to press the CBI to commence its long-delayed investigation into the alleged Kaleshwaram Lift Irrigation Project scam. The move comes after the Telangana High Court on Wednesday granted significant relief to BRS supremo and former Chief Minister K Chandrashekar Rao and his nephew, former Irrigation Minister T Harish Rao, ruling that no action shall be taken against them based on the Justice PC Ghose Commission report. The court termed the commission's findings prejudicial to the petitioners.

Deliberating on the verdict at a cabinet meeting on Thursday evening, ministers noted that the High Court had faulted neither the appointment of the Judicial Commission nor the report it submitted, and upheld the formation of the commission as both lawful and constitutional.

The court's objection was confined to a purely technical ground that notices had not been issued to the petitioners and its ruling was limited to staying any action against them based on the report's findings.

Legal experts briefed the cabinet that the High Court verdict poses no obstacle to the CBI proceeding with its investigation. The government had issued a GO nine months ago seeking a CBI probe into the irregularities, lapses, and malpractices surrounding the Kaleshwaram project, yet the investigation has not commenced. Against this backdrop, the cabinet resolved to formally request the CBI once again to expedite the inquiry. It also decided to study the full text of the verdict, consult senior legal experts in Delhi, and then determine, based on their advice, whether to challenge the ruling in the Supreme Court.

The Telangana government had formally ordered the handover of the investigation to the CBI in September last year. A government order issued by Special Chief Secretary for Home Ravi Gupta granted the central agency full powers to investigate suspected corruption, fund siphoning, and irregularities in the execution of the Medigadda, Annaram, and Sundilla barrages. The order also invoked consent under Section 6 of the Delhi Special Police Establishment Act, 1946, enabling CBI officers to investigate all accused persons — including public servants, private contractors, and companies connected to the barrage construction while specifically removing earlier restrictions on central agency jurisdiction in the matter.

The decision to involve the CBI followed damning findings from multiple investigative bodies. The National Dam Safety Authority (NDSA) constituted a committee to examine the causes behind the sinking of the Medigadda barrage piers. After inspecting the site, the committee submitted its report to the Telangana government, followed by interim and final reports. The NDSA concluded that the barrage failure stemmed from a combination of planning deficiencies, design flaws, quality control lapses, and construction defects arising from inadequate oversight.

Subsequently, the Telangana government appointed Justice Pinaki Chandra Ghose, a former Supreme Court judge, as a Commission of Inquiry under Section 3 of the Commissions of Inquiry Act, 1952, tasking it with investigating allegations of irregularities, embezzlement of public funds, and corrupt practices in the construction of the three barrages. The commission submitted its report on July 31, 2025, identifying several lapses and irregularities warranting serious criminal action. Its findings pointed to negligence, malicious intent, deliberate suppression of facts, and financial irregularities, concluding that there was "wrong and, in fact, no planning" in the construction of the three barrages.

The Telangana Legislative Assembly discussed the matter on the same day the commission report was submitted, with legislators noting that the findings of both the NDSA and the Commission of Inquiry warranted thorough investigation. The Assembly ultimately resolved to transfer the probe into all issues related to the Medigadda, Annaram, and Sundilla barrages to the CBI, citing the project's multi-jurisdictional complexity and the need for comprehensive federal oversight.