KTR seeks probe into Rs 2,059-crore PM Ekta Mall tender in Hyderabad
BRS working president KT Rama Rao has alleged a “massive scam” in the Rs 2,059-crore PM Ekta Mall project in Hyderabad and urged the Centre
BRS working president KT Rama Rao has alleged a “massive scam” in the Rs 2,059-crore PM Ekta Mall project in Hyderabad and urged the Centre to cancel the tender, stop further release of funds and order an independent probe. In a letter to Union Finance Minister Nirmala Sitharaman, KTR alleged that tender conditions framed by the Revanth Reddy-led Telangana government could disproportionately benefit a private developer despite the project being built on valuable public land and receiving Central financial assistance. Read Full Story “Public assets of Telangana cannot be used for private bargaining, and public money cannot become the foundation for private enrichment,” KTR said. The project, proposed on around 6.3 acres of prime land at Raidurg, has an estimated cost of Rs 2,059.81 crore, excluding the value of the land, and has received around Rs 202 crore in Central assistance, according to KTR. KTR FLAGS 2:1 SPACE SPLIT At the centre of KTR’s allegations is the proposed distribution of commercial space between the government and the private developer.
He claimed that while the government’s minimum share is around 9 lakh square feet, the private developer is entitled to at least 18 lakh square feet. KTR questioned why a private developer should receive at least twice the government’s minimum built-up area in a project involving prime public land and substantial Central funding. The selected consortium comprises Vamsiram Builders & Developers Pvt Ltd as the lead member and Aparna Infrahousing Pvt Ltd as its partner. According to KTR, the consortium offered an additional 18,000 square feet of Grade-A commercial office space over the government’s minimum entitlement, taking its share to around 9.18 lakh square feet. The developer, however, would still have a minimum entitlement of 18 lakh square feet, apart from any additional area that could arise through planning efficiencies or permissible FSI, he alleged. KTR has sought an explanation on whether Telangana is receiving adequate value in return for the public land and resources being committed to the project. KTR QUESTIONS FINANCIAL MODEL KTR also questioned the financing structure of the project.
He said an interest-free loan of around Rs 200 crore sanctioned under the Special Assistance to States for Capital Investment scheme for the PM Unity Mall was proposed to be routed through the Telangana Trade Promotion Corporation Limited to the selected developer on a back-to-back basis. He further alleged that the tender framework allows expenditure already incurred on project preparation, consultancy, surveys, approvals and site preparation to be adjusted against the funds. According to KTR, such an arrangement warrants independent scrutiny before any further public money is released. He also argued that the Congress government could not use the PM Ekta Mall branding or Central assistance to shield what he described as an opaque transaction, stressing that projects involving public land, public money and valuable commercial rights required complete transparency. ‘CANCEL TENDER, ORDER INDEPENDENT PROBE’ KTR demanded that the existing tender be cancelled and no further Central funds be released until an independent investigation is completed. He said the probe should examine the land valuation, project cost, financial model, tender conditions, bid evaluation, government share, commercial rights granted to the developer and utilisation of Central funds.
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