Cong MP called for questioning

The CBI,which is investigating allegations of corruption in the Emaar-AP Industrial Infrastructure Corporation township project,served a notice on Congress Rajya Sabha MP K V P Ramachandra Rao for questioning

Written by Sreenivas Janyala | Hyderabad | Published: January 16, 2012 3:35 am

The CBI,which is investigating allegations of corruption in the Emaar-AP Industrial Infrastructure Corporation (APIIC) township project,on Sunday served a notice on Congress Rajya Sabha MP K V P Ramachandra Rao for questioning.

The agency has asked Rao,a close friend and mentor of the late Y S Rajasekhara Reddy and now close to his son Y S Jagan Mohan Reddy,to appear at its field office at Dilkush guest house on Monday.

Rao’s wife K Sunita bought 1,277 sq yards in the township. K R R Krishnam Raju,father of Rao’s daughter-in-law,also bought 1,260 sq yards in the township. Rao was adviser to the government when the share of the APIIC in the township was reduced from 49 per cent to 26 per cent,allegedly causing an estimated loss of Rs 4,130 crore to the state exchequer.

The main allegation against Emaar is that it undervalued the land rates for government records but sold it at very high prices to individual buyers,denying APIIC its share. The allegations are that the illegal money was diverted into accounts of the Dubai-based Emaar. In 2009,a probe by Vigilance and Enforcement headed at that time by V Dinesh Reddy,currently DGP,found irregularities in the sale of villas and plots by Emaar MGF.

The Vigilance report said Emaar-MGF showed that it sold over 100 plots and villas at Rs 5,000 per sq yard. But the market rate at that time was between Rs 35,000 and Rs 40,000 per sq yard.

“Emaar-MGF actually sold the plots at the market rate and pocketed the profits thereby denying the APIIC its share,” the probe report states,adding that this caused a loss of Rs 4,130 crore to the state exchequer. Emaar-MGF allegedly took cheques for the plots at Rs 5,000 per sq yard while the rest was paid by the buyers in cash.

The allegations against Rao as well then APIIC chairman Ambati Rambabu are that they played a key role in Emaar’s decision to reduce APIIC’s share as well as faking accounts.

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