Hyderabad: BRS working president KT Rama Rao has alleged serious financial irregularities and a massive scam in the tender process for the proposed PM Ekta (Unity) Mall at Raidurg, Hyderabad, and demanded the immediate cancellation of the tender and an independent investigation into the entire transaction.In a letter to union finance minister Nirmala Sitharaman on Monday, KTR urged the Centre to immediately stop further release of funds for the project and intervene before any irreversible decisions are taken. He alleged that the Congress govt in Telangana, headed by CM Revanth Reddy, had framed questionable tender conditions that could result in disproportionate benefits to a private developer at the cost of public resources.KTR said the proposed project has an estimated cost of approximately ₹2,059 crore, excluding the value of land, and has received around ₹202 crore in Central assistance. The project is proposed on approximately 6.30 acres of prime land at Raidurg, with around 27 lakh square feet of built-up area.The biggest concern, KTR said, relates to the distribution of commercial space. While the govt’s minimum share in the project is only around 9 lakh square feet, the private developer is entitled to a minimum of 18 lakh square feet. KTR questioned how a private developer could receive at least twice the govt’s minimum built-up area in a project being developed on valuable public land with substantial Central financial assistance.According to KTR, the consortium offered an additional 18,000 square feet of Grade-A commercial office space over the minimum Government entitlement, taking the Government’s total built-up area to approximately 9.18 lakh square feet. However, the private developer continues to have a minimum entitlement of 18 lakh square feet, besides the possibility of additional area arising through future planning efficiencies or permissible FSI.KTR demanded that the Congress govt explain why such extensive commercial rights have been provided to a private developer when the project involves valuable public land and Central financial assistance. He questioned whether Telangana is receiving adequate value in return for the public resources being committed to the project.KTR also raised serious questions over the project’s financial model. He pointed out that the ₹200 crore interest-free loan sanctioned under the Special Assistance to States for Capital Investment (SASCI) scheme for the PM Unity Mall is proposed to be routed through the Telangana Trade Promotion Corporation Limited (TGTPC) to the selected developer on a back-to-back basis.KTR warned that the Congress govt cannot use the PM Ekta Mall brand or Central assistance as a shield for an opaque or questionable transaction.He demanded that the existing tender be cancelled immediately and no further Central funds be released until an independent investigation is completed.KTR called for an independent examination by appropriate audit, vigilance and investigative agencies, including the CAG wherever applicable, so that the facts are established and responsibility is fixed.KTR said the investigation should examine the land valuation, project cost, financial model, tender conditions, bid evaluation, Government’s share, private developer’s commercial rights and utilisation of Central funds. It should also determine whether the tender conditions or financial structure resulted in any undue or unlawful benefit to a private entity.He demanded that the complete DPR, financial model, land valuation, tender documents and bid evaluation records be made available for public scrutiny. He also insisted that the investigation should not be restricted to the same stat govt machinery that designed and implemented the project.
