Naidu got Lamp;T kickbacks: Cong

At the very beginning of the discussion, the ruling party took the sting out of the attack by the Congress when chief whip R Chandrasekhar Reddy raised an objection over the House debating the issue when the matter was sub-judice.

Taking into consideration the opinion expressed by leaders of other Opposition parties, Speaker Y Ramakrishnudu ruled that the discussion would be allowed only if the Congress members restrained from making personal allegations as it would have a bearing on the case pending in the court.Making charges of kickbacks and undue favour, Janardhan Reddy questioned the allotment on three grounds, one, the low equity of 11 per cent retained by AP Industrial Infrastructure Corporation, two, the joint venture partner, and three, under-valuation of land and failure of the Government to call for global tenders before awarding the project.

Denying the allegations at the end of the discussion, Naidu said the land to Lamp;T had been given at the rate of Rs 2536 sq yard, which was more than the market price. Moreover, only six acres had been handed over to the company in the first phase.Replying to the suggestion of Reddy that the APIIC should hold an equity of at least 40 per cent going by the current land price, Naidu said that Hi-tec city was an infrastructure project and cannot be compared to a commercial venture.On why the other bidder Global Techno Industrial Parks Pvt Ltd was rejected, the chief minister8217;s explanation was that the Australian company had asked for land at the rate of Rs 2,200 per sq yard and sought government guarantee for loans to the tune of Rs 200 crore.

This was not agreeable to APIIC.During the course of the debate, Janardhan Reddy made other allegations against the Chief Minister relating to conversion of peripheral land of Jayabheri Constructions belonging to Film Development Corporation chairman Murali Mohan into core area. 8220;For doing this favour, 1,200 sq yards was given to the Chief Minister8217;s wife,8221; the Congress leader charged.

Refuting the charge, the Chief Minister said the application of Murali Mohan for conversion of peripheral area into core area had been rejected by the government.He conceded that the Lamp;T was entrusted the work of building the NTR memorial complex in Banjara Hills. Challenging the Congress leader to prove that a complex belonging to Heritage Foods a business firm of the chief minister8217;s family was being constructed in the city by Lamp;T, Naidu said: quot;If it is proved I am ready to face any consequence.quot;Defending the Government on the Lamp;T issue, CPI leader Vittal Reddy, however, suggested that APIIC seek a share of 48 per cent in the project. CPM leader P Ramaiah said that the Government should come forth with a detailed explanation on the awarding of the project.