Emperor_of_Corruption

IndexChandrababu - The Emperor of Corruption 5Recent Scams List of Chandrababu 8Capital Robbery 9AgriGold Looted! 12Corruption in Irrigation Department 17EPC Out, Additional Payments In!! 19Polavaram Project Costs Skyrocketed! 20Patti Seema Project– Exclusively for Kickbacks 21Benami bags Huge Contracts 23“Additional Liquor!!” 25Galeru-Nagari Project Escalated! 27Mining Barytes Commissions 28Imported Coal Lasts Long! 30Solar Golmaal!! 32These 10 Companies Deserve 'Additional Incentives’! 33Pushkaram Funds Gone Godavari Way! 34Mantri has Every Right to Cheat!! 34Exploitation of Sand Mafia 35Thermal Projects of Favoritism 37Huge Scam in Electricity Department 38CM's Relative Is Always a ‘Worthy’ Man! 41One Hand Proposes, Another Hand Approves 42Four Departments for Party Cadre 43Water, Tree and Evergreen Favouritism 44Central Funds Misappropriated 46A Friend in Deed 47Gift to Galla Family 48Special Development Fund No More! 49‘Additional’ to Nellore Barrage 50Kuppam Branch Canal Works only for Cronies 50Boon to Vamsadhara Contractors 51Lokesh Deal with Millers 51Chandranna’s Kanuka 52Buttermilking the state 52Emperor of Corruption 3

Selling the Lands Outright! 53Babu’s Extravagance Costs the State 55From 2 Acres to Super Riches! 59Chandrababu's Scams in Previous Regime 64Scams List - 1995 to 2004 66Details of Land Gifting 67Corruption in the Sale of PSUs 68What They Said? 69Democracy in Danger 72A World Class Scam or A World Class City? 79A City Under Seize 80The Devil in Detail 83Capital Culprits 88A World Class Scam 93The Captured Capital 98Nara Lokesh and his Benami Inc. 99Sujana Chowdary’s Land Robbing 101Murali Mohan - The Real Benami 102Ravela… Traitor of Dalits 104Rs. 295 Crore Dowry to CM’s Relative 105Assigned Lands in Prathipati’s Account 106Quid pro quo with Lingamaneni 107One Bit, One Benami 111Narayana.. Narayana 112Rama... Rama… Krishna… Krishna 116Payyavula Keshav Descended 117Dhulipalla's Poramboke Lands 118Kodela’s Son, the Rising Star of the Land! 120Kommalapati Sridhar… Perfectly Illegal! 122The Farmers’ Response 124Lingamaneni Ramesh - A King of Encroachments 127A Ravan in Every Lanka 131Narendra Kumar did not Stop 137Share of Anjaneyulu is 4.69 acres! 138Assigned Lands Alienated 139Red Zone in the Name of Green Zone 1454 Emperor of Corruption

Chandrababu NaiduThe Emperor of Corruption Andhra Pradesh CM Chandrababu Naidu has achieved a record ofsorts in corruption. Under his so called able leadership, the onlygrowth that is recorded is collusive corruption, fudging the figures toproject abnormal growth, whereas the reality is quite contrary.Corruption in his last twenty-four months rule outsized the corruptionthat took place in his earlier tenure of nine years. Kickbacks, bribes, shares, commissions…the name could differ, butcorruption is open and ubiquitous in the state. The Telugu DesamParty (TDP) government has unilaterally and without any obligationunder the contract has granted escalations to the civil contractorswith retrospective effect even in Engineering, Procurement andConstruction (EPC) contracts where the contractor has given anundertaking to not to claim escalation. While facilitating suchescalations to the contractors through GO MS No.22, theChandrababu government is amassing huge amounts as kickbacks. Though AP Reorganisation Act mandates the Union Governmentto take over and complete the Polavaram project, instead of handingover the project to the Government of India, the TDP government hasimplemented the ill-advised no storage, temporary project of PattiSeema at the cost of Rs. 1600 crore, just to pocket Rs. 710 crore askickbacks. With the tailor-made prerequisites, the governmentawarded the contract to its most favoured contacting firm at excess of21.9% on the Estimated Project Value (EPV). According to the existingnorms, any tender which quotes more than 5% excess to the EPVcannot be accepted. To circumvent this tab, the government hasshown 16.9% (21.9% - 5%) as the bonus for completing work withinone year, which is the actual stipulated time. And worse, the bonusclause was not even a part of the contract when the tenders werecalled for. Having accomplished that, the TDP government is now trying totake over Polavaram project by substantially escalating the project Emperor of Corruption 5

cost only for pocketing kickbacks, even when the prices of petrol,diesel, steel, aluminum and sand have come down, while cement ratesare stable. Today, in Andhra Pradesh, there is nothing that can be donewithout a bribe and there is nothing that cannot be done with a bribe.From sand reaches to solar plants, tenders in Irrigation Department toPower Department, Chandrababu ensured that not a single process isunaffected by his corrupt government. For instance, his governmenthas made the illicit sand mining a major source of income by almostall the TDP functionaries starting from MLAs to Ministers to ChiefMinister himself running as a syndicate. This is running into thousandsof crores of rupees. Chandrababu has focused on the legal plunderfrom the day one and made corruption a systemic practice in thestate. After acquiring the ill-gotten money, Chandrababu Naidu hasbrazenly started luring the MLAs from YSR Congress Party (YSRCP), themain opposition. If they join TDP, they are paid a minimum of Rs. 20 toRs. 30 crore, the lure of ministerial berths to MLAs, who got elected onYSRCP B Form and symbol. Chandrababu government has so farpoached 17 out 67 YSRCP MLAs. Such blatant display of ill-gottenmoney is not being questioned while the \"Anti Defection Law\" whichis part of our Constitution is being mocked at in broad daylight andyet our democracy remains silent. The TDP is conveying a direct message to opposition MLAs- 'If youare with us, there is heaven or else you are in hell'. What is worse is thatthe Chief Minister and his colleagues in the cabinet are givingstatements that they would welcome all the MLAs from theopposition with open arms while assuring them that they would notbe disqualified. When it comes to Amaravati, the state government, in the name ofdeveloping a world-class Capital, is doing a world-class real estatescandal to the tune of Rs. 1 lakh crore. Breaching the 'oath of secrecy',Chandrababu revealed the details of the actual location of the Capital 6 Emperor of Corruption

city to the members of his coterie. Subsequent to this, to bring down the value of the lands in theprospective Capital location Amaravati, the TDP government throughits media friends propagated that the Capital city was going to comeup in other locations such as Nuzvid or Nagarjuna University areas.Fooled by this propaganda, people flocked to these areas and the landvalue in Amaravati region came down overnight. Seizing the moment,cronies of Chandrababu, his ministers, MLAs, MPs and his partyleaders bought land in the Amaravati region at throwaway pricesduping the local farmers. Once his cronies have finished thepurchases, the capital declaration came on December 28, 2014, whichtantamounts to \"Insider trading\" and breach of \"Oath of Secrecy\". In the name of land pooling, the government grabbed the fertile,irrigated, multi-crop lands of the farmers, while sparing landsbelonging to his cronies. The poor farmers who sacrificed their landswere supposed to get the paltry extent of residential and commercialplots in their own villages. However, even today they have no clue asto as to when and where these plots would be given. It's most glaring to note that in the name of zoning regulations, thelands belong to his cronies are made part of most lucrative real estateenabling zones, while those of the poor farmers are drawn into agrizone. There is no end to such stories of open corruption byChandrababu Naidu. These scandals have been brought out by\"Sakshi\" daily with irrefutable proofs. Emperor of Corruption 7

Recent Scams of Chandrababu (In Rs. in Crores)Corruption in the name of Capital City 1,00,000AgriGold Scam 10,000Corruption in the Irrigation Department 6,000Gifts from Liquor Syndicate 5,800Kickbacks in Power Projects 4,000Kickbacks from Sand Mafia 2,637Polavaram Project Cost Escalation 3,000Incentives to Industrialists 2,500Water & Tree Scheme Distribution 1,800Benefit from Abandoning EPC Method 1,500Fiber Optic Grid Contract to a Benami 1,400Central Funds Misappropriated 900Wastage of Funds for Godavari Pushkarams 750Bribes in Patti Seema Lift Irrigation Project 710Corruption in APGenco Thermal Projects 670Four Departments for Party Cadre 500Kickbacks from Barytes Mining 390Land at Throwaway Price to a Friend of Nara Lokesh 338Gift to CM's Relative 245Benefit to Contractors in Vamsadhara Project 214Kickbacks in Coal Imports 200Lokesh Deal with Millers 200Gains from Solar Tenders 155Additional Payments in Galeru-Nagari and Avuku Projects 153Kuppam Branch Canal Works to TDP District President 120Lands to NTR Trust 100Gains from Support to a Minister who masterminded the Cotton Scam 100Money made from “Chandranna Gift’ Scheme 100Land gifted to Galla Family 40Buttermilking the State! 39‘Additional’ Cost of Nellore Barrage 10Total: 1,44,5718 Emperor of Corruption

Rs. 1,00,000 Crore Capital Robbery CM Chandrababu leaked vital information on Capital city location to his cronies and party men Nara Lokesh, his confidants and TDP leaders benefitted to the tune of Rs. 1,00,000 crore The government is doing real estate business with the lands of farmers❖ Under the guise of building a world-class Capital city, the Andhra Pradesh Chief Minister is running a real estate business while misleading the actual location, he leaked the information on actual location of the Capital city to his coterie and helped them accumulate lands worth at least Rs. 1 lakh crore at the cost of fortunes of other ordinary people. From his swearing-in on June 8, 2014, till the date of announcement (December 28, 2014) of the new Capital, the lands were being procured by his cronies. Isn't this insider trading or breach of oath of secrecy?❖ Even before an official statement was made about the location of the Capital city, the CM's cronies and their benamis bought large extents of land in this region. While benami registrations are only a tip of the iceberg, you will find many more of these sale transactions as registered GPAs as well, when thoroughly probed.❖ Due to the CM's favouritism, the lands of his cronies were not taken into \"land pooling\" while the lands of other farmers were taken by hook or crook. Land pooling only gave paltry extents of plots to the owners. For instance, in the case of Lingamaneni Estate and Ramakrishna Constructions, the Chief Minister first sent a police official to threaten them that their projects included assigned lands, hence, their projects could be confiscated and used for land pooling. While Lingamaneni The note issued by the Water Resources Department which shows that the Lingamaneni guest house was constructed in violation of River Conservation Act. Emperor of Corruption 9

Group purchased 804.32 acres, Ramakrishna Constructions bought 179.51 acres. The owners of both the groups compromised with the CM and got his protection from the land pooling. In a similar fashion, the CM also benefitted the ruling party MLA Kommalapati Sridhar by exempting his 43-acre real estate venture from land pooling for the reasons best known to him.❖ Chandrababu always brags that his 'land pooling' scheme is a complete voluntary process. He has decided to pool a total of 53,743.49 acres for the construction of the Capital city on the 29 villages located in Thullur, Tadepalle and Mangalagiri mandals. Out of this, 15,010.03 acres are assigned and government lands and remaining 38,737.46 acres of land was to be collected from the farmers. To this effect, the AP government issued a GO on January 1, 2015.❖ The cronies of Chandrababu have propagated that the government would take the assigned and lanka (riverbed) lands from the present owners without paying any compensation. These lands were allocated, long back, to the people belonging to SC, ST and BC communities. The government officials informed the public that the government could 'take back' the lands without any compensation as they were once given at free of cost. Scared by the propaganda, the owners of 1,843 acres of assigned land and 1,514 acres of lanka (riverbed) land sold their lands to TDP leaders at cheaper rates. Once these transactions were concluded, the TDP government came up with a generous compensation package for these lands in February 2016, fourteenThe AP Government orders issued on The Government orders issued on January 1, 2015, which stated that February 17, 2016, specifying the assigned lands would be pooled compensation for assigned lands after the conclusion of land deals by under land pooling process TDP realtors10 Emperor of Corruption

months after the firstannouncement.❖ It costs Rs. 30 lakh for layoutdevelopment for an acre of landeven according to the internationalstandards. About 3000 sq. yard canbe developed on each acre.However, the government isproviding the paltry extent of 1000-yard residential plot and 200/450-yard commercial plot per acre ascompensation to the farmers.❖ Cronies of Chandrababu who haveprocured land have also been The Draft Policy Guidelines of thefavoured by 'Zoning'. Chandra CRDA that classified the Capital citybabu's cronies have come under lands into different zonesreal estate zone facilitating their real estate activities while otherfarmers lands in the two districts have been pushed to \"Agri Zone-1\" tocreate demand for his cronies' lands. While APZ-1 has a heavyagricultural tilt, the APZ-2 is going to host Future UrbanisedDevelopable Area. In APZ-3, every activity in the proposed urban area isallowed. TDP leaders and their benamis have bought about 10,000acres of land in APZ-3 and proposed urban area even before they werezoned as seen in the picture with dots. Agriculture Zone - 1 Agriculture Zone - 2 Agriculture Zone - 3 Present Urban Area Proposed Urban Area Proposed Industrial Area Dots represent the lands of cronies of CM Emperor of Corruption 11

Rs. 10,000 CroreAgriGold Looted!No. of Depositors and Agents 40 LakhDeposits of Subscribers Rs. 6,850 CroreInterest on Deposits Rs. 3,150 CroreTotal Scam Amount Rs. 10,000 Crore Lakhs of small-time employees, ordinary farmers and working familieshave deposited their meagre savings with AgriGold, lured by the high-interest rates offered by the company. With this money, AgriGoldmanagement has bought thousands of acres of lands. Finally, it failed torepay the matured value of the deposits to its subscribers. When such scandal took place, the governments shall sell off the landsowned by the company and its management and repay the money to thedepositors. However, even before the scandal became public, theAgriGold management siphoned off the available funds and also sold theprime properties with the active cooperation of the government. As agratitude for this unprecedented protection, the company sold some ofthe high-value assets to TDP leaders. This nexus can be corroborated bythe delay in attaching properties and the reluctance of the government inarresting the accused. AgriGold former vice-chairman Doppa RamMohan Rao joined TDP on April 30, 2016 in Vizag. This demonstratesthe perfect cordial relationship between Chandrababu and AgriGoldmanagement. This is a Rs. 10,000 crore scandal. The hard earned money of lakhs ofpeople has disappeared all of the sudden. However, the state governmenthas made no major arrests until the High Court nudged it for its inaction.Left with no option, the government started making arrests. It arrestedtwo accused i.e. the Chairman and MD of the company in February 2016.Due to this protection from the state government, AgriGold management12 Emperor of Corruption

AgriGold chairman A.Venkata Rama Rao with CM Chandrababu Naidu on April 17, 2001was able to sell off their key assets and siphon off the available cashdeposits, leaving the lakhs of depositors and agents high and dry. Thanks to such state protection, the investigation hasn't movedforward until the High Court reprimanded the government. The HighCourt expressed its concern over the way the investigation was beinghandled and even ordered the change of an investigating officer. In manysmall cases, governments make quick arrests and ensure that the culpritsare brought to the justice. But, in this case, thanks to the links betweenthe CM Chandrababu Naidu and the management of the beleagueredcompany, the latter could get all the protection it needed. The AgriGold Scam is four times bigger than the notorious SaradhaScam, in which Rs. 2,500 crore public money is involved. While SaradhaScam is being investigated by the Central Bureau of Investigation (CBI),AgriGold scam is left to the state Crime Investigation Department (CID).The AP government is doing nothing but weakening this case. It ensuredthat important assets of AgriGold are not attached by allowing to be soldby the AgriGold management even before the scam surfaced. It has evengone to the extent of informing the court that there was no need for thearrest as the accused are cooperative for the investigation. Everythingbecomes clear if one could connect the dots. Hopeless Investigation About 40 lakh people have lost their substantial savings due toAgriGold scam. According to CID's own statistics, there are 32 lakh Emperor of Corruption 13

depositors, 8 lakh agents and the volume of the scam is Rs. 10,000 Crore.Chandrababu is milking as much money as he could by keeping this caseunder his control without handing it over to the CBI for a quick andimpartial investigation. Due to this scam, already more than 100 peoplehave committed suicide, hundreds of agents have fled their homes.Indifferent to the serious situation, the state government is protecting thescamsters. Furious High Court There are two Public Interest Litigations were filed in the High Courtseeking CBI probe. As part of hearing on these PILs, the High Courtwhich is supervising the AgriGold scam investigation by the CID. TheCourt, several times, has expressed its anguish several times. It has manya time wondered whether the CID was working for the culprits andweakening the case. The court was furious when it came to know thatthere was only Rs. 6 lakh left in the bank accounts of AgriGold company.The most shocking thing is the Finance Minister YanamalaRamakrishnudu's statement some time before that AgriGold had thebank deposits of Rs. 570 Crore. Pattadar passbook issued in the name of Tene Venkayamma, wife of Agriculture Minister Prathipati Pulla Rao Minister's Wife bought AgriGold land Before the issuance of Attachment GO in February 2015, T.Venkayamma- the wife of Agriculture Minister Prathipati Pulla Rao 14 Emperor of Corruption

bought 14 acres of landfrom Uday Dinakar of RamAwas Resorts Hotels Group,which is an AgriGold groupcompany, on January 19,2015, a month ahead of theattachment of theproperties. This means thebigwigs of the governmenthave taken all the valuablelands and attached theremaining assets that are oflittle value. GO 23 Doesn'tContain All Assets In the backdrop of the The sale deed of the land purchased by theHigh Court's repeated minister Pulla Rao from Uday Dinakar, a directorreprimands, the AP of an affiliated company of AgriGoldgovernment issued GO No: 23 attaching the assets of AgriGold group.However, not all the assets of the company were attached through thisGO. While the investigation was going on, AgriGold group vice-chairmanSitaram Awas sold a land (one acre and 12 cents) in Tirupati on August 10,2015 for Rs. 14 Crore. Mr. Awas is the own brother of the Director ofAgriGold company. Though this land belongs to AgriGold company,neither this land was attached by the government nor Mr. Awas arrested.This is a very clear indication for overt protection that is being providedto the AgriGold group by Chandrababu government.First Case in NelloreThe first complaint against AgriGold was filed on December 12, 2014, inthree town police station of Nellore. Chandrababu feared that that issuewould go to the court and the court could order a probe by CentralBureau of Investigation (CBI). That was why he ordered a CID probe intothe AgriGold scam on January 5, 2015. After commissioning the probe, hehas pressurized the officials. This is the reason why the CID officials are Emperor of Corruption 15

repeatedly telling that HighCourt that there was no needto arrest the AgriGoldmanagement as they havebeen cooperative with theinvestigation.Where are theDeposits ofRs. 570 Crore?AP Finance MinisterYanamala Ramakrishnuduspeaking to DeccanChronicle on January 17,2015, said that AgriGoldgroup has the cash depositsof Rs. 500 crore in AP Finance Minister Yanamala Ramakrishnudu said AgriGold had Rs. 570 crore cash deposits incommercials banks and Rs. banks, according to the report of Deccan70 crore in non-commercial Chronicle, January 10, 2015banks. Later, thegovernment seized 22 bank accounts and submitted a report to the HighCourt saying that there was only Rs. 6 lakh in those accounts. The judgeobjected the report and questioned how this was possible and what thegovernment was doing while the money was being siphoned away fromthe accounts.Need for CBI investigation A full-fledged investigation has to be conducted by the CBI if justicehas to be rendered to the AgriGold victims. Many more assets of AgriGold,which would be brought out by the CBI investigation, have to beauctioned under the supervision of a sitting High Court Judge. Thegovernment must instill faith in the prospective buyers of the lands ofAgriGold group. There is every chance that TDP leaders spreading therumours that buying AgriGold lands is unwise decision; so that they couldget those lands at cheaper rates. The 40 lakh victims of AgriGold wouldget full justice only when these lands are sold at right prices. That's why itis the responsibility of the state government to instill the confidence inthe prospective buyers.16 Emperor of Corruption

Rs. 6,000 Crore Opposition of Two Chief Secretaries could Not StopCorruption in Irrigation Department A scam took place in the The money that name of cost escalation, has been offered as the return gift which is worth about Rs. 3000 CroreRs. 6000 Crore Some parts of the GOs 153, 154 and 156 which have finalised the additional payments The AP government removed the works of Galeru-Nagari SujalaSravanthi (GNSS), Handri-Neeva Sujala Sravanti (HNSS) and Gorakalluprojects from previous contractors against the existing regulations. Thenit escalated the costs of the projects many times and called for new Emperor of Corruption 17

tenders forming rings without even obtaining any administrativepermissions for them. While tenders have been called for 25 packages, ina strange coincidence, all the tenders were won by C. M. Ramesh, a TDPMP and Chandrababu's close confidant, and a few other leaders of theruling party. It is clearly evident from this that the most favouredcontractors of Chandrababu bagged all the contracts by forming into acartel with the direct help of the higher-ups in the government. Thus, the government has prepared the ground for the open robberyof Rs. 6,000 crore. In all packages, mobilization advances were issued,about 50 % bills were also paid before taking any administrativepermissions. As the Finance Department started raising its objectionsabout this illegal process, the heads of the government used force andsilenced the officials who were concerned about the issue. Indeed, thepayment of advances and bills without administrative permissions isagainst the law and attracts audit objections. Highlighting these intentional lapses, Sakshi daily publishedextensive, well-researched stories about the ongoing scam. To make theRs. 6,000 crore illegal affair legal, the state government has come out with‘new cost escalation’ proposals. However, given that the escalation was asham, both the erstwhile Chief Secretary I. Y. R. Krishna Rao and thepresent Chief Secretary S. P. Tucker refused to sign on these escalationproposals. To counter the opposition of the Chief Secretaries, CM ChandrababuNaidu and his son Nara Lokesh brought forth the ‘cabinet approval’. To thehorror and shock of bureaucrats, the highly corrupt cabinet ‘approved’ thethoughtless cost escalation proposals. Despite the ‘approval’ of thecabinet, the Chief Secretaries refused to sign on these proposals. Due totheir opposition, the proposals have gone back to the cabinet thrice. A proposal going back to cabinet thrice due to opposition frombureaucrats could be first of its kind incident in Independent India’shistory. Not just one, but two Chief Secretaries refusing to give the nod tothe government proposals indicates the dangerous levels of corruption inAndhra Pradesh. It is learnt that Rs. 6,000 crore scam has taken placeunder the government’s watch and half of the amount Rs. 3,000 crore hasalready changed hands. 18 Emperor of Corruption

Rs. 1,500 CroreEPC Out, Additional Payments In!!The additional payment The money that wasmade to the contractors paid as bribeRs. 3,000 Crore Rs. 1,500 Crore The GO 22, a generous boon to contractors The heads of AP government brought GO no: 22 to make additionalpayments to contractors. According to this GO, the government can escalatethe costs of the projects that were awarded under the Engineering,Procurement and Construction (EPC) method. Even though the projects awarded under the EPC need not to beescalated, the AP government has introduced a new provision for costescalation even for the projects that were awarded under the EPC, that toowith a retrospective effect from 2013. This GO hugely benefits the favouredcontractors, causing a huge loss to the exchequer, and that too when theprices of all commodities like petrol, steel, diesel, cement and sand have comedown. The government is also killing several other prudential practices. Forthe first time, it expressed willingness to pay Standard Schedule Rates (SSR)for concrete works. This is going to burden the exchequer an additional Rs.3,000 crore. Half of this money-Rs. 1,500 crore- would be repaid to the bigwigsof government as the kickbacks. Due to the GOs 22, the rate of cubic meter concrete has gone up frompresent Rs. 2,500 to Rs. 4,000. Now, the government has increased another Rs.3000 for cubic meter concrete and is ready to pay Rs. 7,000! This GO has madeprovision for generous additional payments for labour, sand, machinery,dewatering, controlled blasting, digging of hard soils, digging of hardest soils,among others what need not have been paid additionally according to EPCnorms. Instead of penalizing the contractors, they were given additional sumsfor reasons best known to CM. Emperor of Corruption 19

Rs. 3,000 CrorePolavaram Project Costs Skyrocketed!The cost for Polavaram project The money that has changedafter cost escalation hands so far.Rs. 31,000 Crore Rs. 3,000 Crore Two portions of the proceedings that were approved by the state cabinet for escalating the costs of Polavaram project. Polavaram project is a national project according to the Section 90 (IV) ofthe AP Reorganisation Act. This means it is the responsibility of the Centralgovernment to fund the project, get the required clearances and completethe project. The Centre has formed Polavaram Project Authority (PPA) takecare of this project. The estimated cost of the project in 2010-11 was Rs.16,010.45 crore and the same was approved by the Planning Commission.However, the present TDP government has straight away taken this cost to Rs.31,000 crore, as affirmed by the Irrigation Minister Devineni UmamaheswaraRao. The AP government- which doesn't want to hand over this 'lucrative'project to the Centre- has so far failed to submit certain omissions to the PPAwith the objective to prevent the handing over the process. Since the APgovernment has failed to handover the project to the centre, the project ispresently under its watch and the state government is making the most of theopportunity. For instance, the value of head works which are being executed by thepresent contractor has been increased from present Rs. 4,041 crore to Rs.6,961 crore. In this amount, 50 % is kickbacks, which will go into the accountsof the bigwigs. Hundreds of crores of rupees have been given as mobilizationadvance to the companies such as Transstroy India Ltd. Subcontracts onnomination basis are brought into the picture at these inflated rates to easecorruption. The seventh package works left undone by L&T valued at Rs. 23Crore were given on nomination basis for an inflated price of Rs. 73 Crore. Inall, it is estimated that 50 % of the escalated total project cost is going into thepockets of the government heads.20 Emperor of Corruption

Rs. 710 CrorePatti Seema Project– Exclusively for Kickbacks After the The kickbacks Amount The total pocketed by escalation, that have been contractor by amount ofthe cost of Patti offered to the changing theSeema project government project design kickbacks ishas gone up to heads so far are Rs. 260 Rs. 710Rs. 1,600 Rs. 450 Crore Crore Crore Crore The memo said 5 % additional amount shall be paid to the contractors if they complete the works before the deadline Polavaram project is a God's gift to Andhra Pradesh. Instead of completing thismega project, Chandrababu Naidu brought forth the Patti Seema project, whichactually is a part of Polavaram project. The project cost was estimated to be awhopping Rs. 1,300 crore and contract was awarded to a contractor who is closeto Chandrababu Naidu. Firstly, some conditions in the tender schedule were tailor-made to suit to afew companies that are close to the CM. Though Estimated Project Value (EPV)was Rs. 1300 crore, the bid of the L1 contractor was Rs. 1,600 crore, which was 21.9% higher than the EPV. However, the company was given the contract byconverting the remaining 16.9 % (21.9%-5%) into the bonus for completing theproject in time! Meaning the same one year period for which the tenders werecalled for. Actually, the bonus clause was not even a part of the contract when thetenders were called. The AP government has added this provision to Patti Seemaproject contract to get additional kickbacks. The Chief Minister Chandrababu Emperor of Corruption 21

Naidu and his son Lokesh inflated the cost of Patti Seema project to Rs. 1,600 croreand are said to be benefitting to the tune of Rs. 710 crore. It is learnt that thekickbacks were the reason for government's generosity towards the contractors.Open Exploitation in Patti Seema Motor pumps have come down from 30 to 24 and pipelines have come down from 15 to 12. Costs have come down, but not the project value!! The contractor of Patti Seema project has cooked up a plan to downscale theproject cost, thereby augmenting his profits. He changed the project design andstarted the work even without obtaining the required permissions from the stategovernment. Despite bringing down the actual project cost, he did not reduce theestimated cost. The government heads also found merit in the contractor's designbecause as it also serves their 'purpose' i.e. they could get their share from the'savings'. The initial contract between the state government and Megha EngineeringInfrastructure Ltd. (MEIL) was to lift 8,500 cusecs of water by putting together 30motor pumps and 15 lanes pipelines. However, the contractor has brought downthe number of motor pumps to 24 and pipelines to 12. This effectively broughtdown 20% of the estimated cost of Rs. 1,300 crore i.e. Rs. 260 crore due toeconomies of scale. The contractor and the government heads want to pocket this money.Generally, when the number of the pipelines and motor pumps comes down, theactual cost of the project should also come down. But, it did not. Despite suchdiscrepancy, the AP government has approved the changed design withoutraising any objection. This means the government and the contractor havecolluded and siphoned off the taxpayers' money. The MEIL has sent its new proposal, after bringing down the motor pumpsand pipelines, to the Central Designs Organisation (CDO) on July 27, 2015.However, even before getting his design approved by the government, thecontractor had placed an order with a Chinese company for 24 motor pumps. Thismeans the contractor was very sure that the government was about to approvehis plan. The contractor was supposed to lay 15 lanes of the pipes of 3 meter diameter.However, he laid 3.2 meter diameter pipes and brought down the total number oflanes from 15 to 12. Chandrababu government raised no objection to thesedesign changes by the contractor and it is obvious why it gave such approval!22 Emperor of Corruption

Rs. 1,400 CroreBenami bags Huge Contracts The value of projects that were The 50% of kickbacksawarded to Harikrishna Prasad, a in the transaction is confidant of Nara Lokesh is Rs. 1,400 CroreRs. 2,800 CroreThe GO that has finalised the rules The 5th page of the GO that shows the and regulations of the tender Appointment of Harikrishna Prasad as a member of High-Level Tender Approval Committee, while he is a member of Tender Approval Committee he awarded works to his own company and that too to a blacklisted company Andhra Pradesh is introducing Fiber Grid project with the soleobjective to control the TV channels in the state. Any programme or pieceof information shown in the TV channels against Chandrababu Naiduwould be halted immediately with the help of this grid. To develop thenecessary infrastructure for this media control programme, the TDPgovernment has awarded a contract worth Rs. 333 crore to a companynamed Tera Soft. This Tera Soft is the company that has previously failed to implemente-pass for the public distribution shops in the state. For this reason, thecompany was blacklisted on May 11, 2015. Despite the blacklisting,Chandrababu awarded the tender to this company. Tera Soft companybelongs to Vemuri Harikrishna Prasad, who was previously arrested by theMumbai police for stealing an Electronic Voting Machine. The story behind this tender is as following. Chandrababu took adecision to float tenders for the Fiber Grid project some time ago. Toexecute his decision, he formed a committee in the name of \"High-LevelTender Approval Committee\" and made Harikrishna Prasad a member of Emperor of Corruption 23

the committee. By this time, he is the director of Tera Media CloudSolution which controls the Tera Soft. Tera Soft also is also connected to Heritage Foods of ChandrababuNaidu. Devineni Sitaramaiah, who is a director of Heritage Foods servedas a director of Tera Soft until September 30, 2014. Harikrishna Prasad hasmanned the social media campaign of Telugu Desam Party during 2014elections and also a key person in Heritage Foods. This meansChandrababu has entrusted the contract to a company that is owned byone of his cronies. The favouritism of Chandrababu clearly indicates the family andbusiness relations between the Chief Minister and Harikrishna Prasad.Chandrababu Naidu is inflating the clout of Harikrishna Prasad so that hecould 'partner' with big corporations such as Cisco Software. The CMwants to award the contracts for bigger projects such as UWIN and E-Pragati to Tera Soft by showing the Cisco and other major companies asthe implementing agencies of these contracts. The plans are in the pipeline to award E-pragathi project- which isworth of Rs. 2,398 crore- and a few other projects to Tera Soft's partnerCisco Software. While the total value of these projects is Rs. 2,800 crore,half of the money i.e. Rs. 1,400 crore is supposed to reach the pockets ofthe government heads.24 Emperor of Corruption

Rs. 5,800 Crore“Additional Liquor!!”The kickbacks from the liquor Bribe paid by the Liquor syndicate in last 24 months Syndicate for Karnataka-style Rs. 4,800 Crore liquor policy Rs. 1,000 Crore The GO that permitted the expansion of existing capacity of liquor manufacturers The Andhra Pradesh government stated in 2015 that it was going tocome up with a new liquor policy on the lines of the policies of TamilNadu and Kerala. In Tamil Nadu and Kerala, the governments run theliquor shops and there is no place for private individuals in the liquorbusiness. This statement was indeed an indirect warning to the liquorsyndicate of the state and it was aimed at making them surrender to thegovernment. As government expected, the liquor syndicate has made peace withthe government by offering a bribe of Rs. 1000 crore to the heads of thegovernment. Thanks to this understanding, the state government haschanged its mind and finally came up with Karnataka-style liquor policy,where there would be no active role for the government in the liquorbusiness. Had the AP government come up with Tamil Nadu style policy;the liquor syndicate would have gone out its business and at the mercy ofthe government. Liquor would not have been sold above the Maximum Emperor of Corruption 25

Retail Price (MRP). There are also allegations that the syndicate members are alreadypaying Rs. 200 crore every month to sell the liquor products above theMRP. That means the bigwigs of the government raked up Rs. 4,800 crorein last 24 months. Besides these earnings, the state government hasinvited applications for expansion and new distilleries. It has received 10applications for expansion and gave four permissions to their choicestdistilleries. It is learnt that Rs. 400 crore has changed hands in thistransaction. For new distilleries, the government received 8 applications.However, this whole process came to a halt because of the pendinglitigations in the AP High Court.26 Emperor of Corruption

Rs. 153 CroreGaleru-Nagari Project Escalated! The additional amount paid to TDP MP C. M. Ramesh in Rs. 153 Croretwo packages of Galeru-Nagari Project is In Galeru-NagariSujala Sravanti (GNSS),the AP government hasincreased the projectcosts unprecedentedly.For instance, the leftoverwork worth Rs. 10 crore inthe 29th package wasremoved from thecontractor’s scopewithout any penalties andthe same was retendered. The cost was increasedto Rs. 115 crore and The memo issued by the Chief Engineer seeking a report onawarded to Ritvik Projects Avuku tunnel works as there were corruption allegationsof C. M. Ramesh, an MP ofthe ruling party, without even taking administrative permissions. Ironically,two consecutive Chief Secretaries of the state have objected thisunprecedented escalation of the project cost. Despite their opposition, thestate government discussed the proposal in the cabinet and approved. TheEngineering, Procurement and Construction (EPC) method of the IrrigationDepartment never allows for project cost escalation. After making the payment of Rs. 35 crore bill, a dispute arose between C.M. Ramesh and the Irrigation Minister as to the percentages of thecommissions. Due to this dispute, the truth about the absence ofadministrative permissions came out. As a result, further payments werestopped to the company of Mr. Ramesh. The outraged MP-cum-contractorexposed the corruption in the Avuku tunnel works (Package No: 30), which isa part of GNSS project. He wrote a letter to the government stating that theIrrigation Department officials were making the additional payment of Rs. 44crore to the contractor, which was against the provisions. In these twoinstances, the taxpayers’ money paid to the contractors were - Rs. 99 croreand Rs. 44 crore; a total of Rs. 153 crore. Emperor of Corruption 27

Rs. 390 CroreMining Barytes CommissionsThe loss incurred by the Andhra Pradesh Loss incurred byMineral Development Corporation is Rs. APMDC is Rs. 531 crore 280 crore.The kickback pocketed by heads of the The share of the government government is Rs. 140 Crore. bigwigs is Rs. 250 Crore The GO that has decreased the basic rates. Andhra Pradesh CM Chandrababu Naidu spoke so passionately aboutcalling global tenders for the barytes mining. However, what he has doneat the end of the day was to prevent national and global companies fromparticipating in the barytes tender process. Chandrababu government first issued a GO which complied with theexperts' opinion that 70 % to 75% of global market price has to be kept asthe basic price. Then the government issued another GO which cancelledthe first GO and decided 65% to 70% of the global price as the basic price.Finally, the CM has decided 65% of the global price as basic tender price. He has ensured that only three companies would participate in thetender process and also coordinated them to form a ring. Thanks to thegovernment's exercise of facilitating a ring and reducing the base price,the companies have benefitted to the tune of Rs. 280 crore and it is learnt28 Emperor of Corruption

that half of the amount Rs. 140 Crore paid to the government heads as thekickback. Barytes Mining Corrupted After coming into power, the TDP government has cancelled theexisting tender for barytes mining. It has removed VLC&SC company andawarded it to Chennai-based Triveni Earthmovers Pvt. Ltd. for a shortperiod of time. A little later, the government has once again revised thetender and awarded to the same Triveni company at a higher rate; withthe help of tailor-made tender regulations. Thanks to the restrictive regulations, only two companies couldparticipate in the tender process. Though both the organisations haveformed a ring and quoted a higher price, the state government did notcancel the tender and awarded the tender to Triveni Earthmovers. Through the process of tender cancellation, awarding it to Trivenicompany for the short-term and re-awarding the revised tender to thesame Triveni company, Chandrababu inflated the contract price by 33%,compared to the price of the initial contractor VLC&SC, who was removed.This decision of the government burdened Andhra Pradesh MiningDevelopment Corporation (APMDC) to the tune of Rs. 531 crore and shareof the decision makers in this amount is Rs. 250 crore. Emperor of Corruption 29

Rs. 200 Crore Imported Coal lasts long! The value of a possible scandal in the The money that changed hands in thiscoal purchases is Rs. 500 Crore transaction is Rs. 200 Crore The summons issued by the Central Revenue Intelligence Directorate on the problems in the bills of imported coal About Rs. 500 crore taxpayers' money was wasted in purchasing theimported coal for Andhra Pradesh Power Generation Corporation Ltd.(APGenco). A Public Interest Litigation (PIL) was filed in the HyderabadHigh Court in this regard. The following is the story. The APGenco entered into agreements with the central governmentunits PEC Limited and MSTC Ltd. on May 6, 2013, to purchase importedcoal. Though the tenure of the contract was only 6 months, the purchasescontinued until the end of 2015. Although it was the governmentcompanies that were on screen, the coal mafia ran the actual show underthe guise of sub-contractors.30 Emperor of Corruption

While 12 lakh ton coal was purchased during the contract period,additional 19.25 lakh ton of coal was purchased after the agreement time.The per ton coal rate in the international market during the contractperiod was US$ 69.15; it became US$ 80.15 after the inclusion of seafreight charges of US$ 11. However, the price came down to US$ 52.40 byMarch 2015 and its final rate after addition of US$ 7.23 of sea freightcharges was US$ 59.63. Had Genco called for fresh tenders, this savingwould have come. This means the APGenco paid additional price of US$ 20.55 for eachton of coal it had imported. In all, it made Rs. 246 crore additionalpayments. Though it was the contractor's onus to transport the coal fromKrishnapatnam port to thermal projects, the APGenco paid this fee too.For the transportation costs, the contractors were paid Rs. 100 croreduring the contract period and Rs. 200 crore after the contract period. A total of Rs. 546 crore of public money was misused by thegovernment. According to a highly reliable source, a good amount of thismoney went into the pocket of the Chief Minister. Emperor of Corruption 31

Rs. 155 Crore Solar Golmaal!!The prospective loss that will have The money that changedto be borne by APGenco, as it had hands in this transaction is to allow the highest bidding is Rs. 155 Crore Rs. 755 Crore. The new regulations created by the Andhra Pradesh Power Generation Corporation Ltd. (APGenco) to select the ‘choicest’ companies The APGenco favoured a few private companies in awarding thetenders for solar power projects, which are to be established in Anantapurdistrict. The details are as following. The APGenco called for Engineering, Procurement & Construction(EPC) tenders for its 500-MW solar power project in Talaricheruvu villagenear Tadiparti town of Anantapur. The officials of BHEL were used to rigthe price in tie up with others. The BHEL which quoted Rs. 6.26 crore forMega Watt was selected as L-1 through reverse bidding method.However, the government strangely gave this project at the same price toother companies such as Sterling, Tata, L&T and MEIL. The problem is the price quoted by the BHEL itself is an inflated price.The NTPC which is establishing a similar thermal power plant in the samedistrict has finalised the price of Rs. 4.91 crore for MW. Even the eligibility criteria of the companies were an issue. While 17companies participated in the tender bidding of NTPC, only fivecompanies got the eligibility to participate in the tender process ofAPGenco. This was because the important conditions of the tender weretailor-made to suit the interests of certain favoured companies. TheAPGenco is paying Rs. 1.51 crore extra for each MW of power, whichmeans the company will be burdened by Rs. 755 crore. When the scandalwas reported by Sakshi daily and a few PILs were filed in the HyderabadHigh Court, the AP government stopped the approval process. It wasclear the tender process was initiated to kick start a scam and finally gotstopped due the Court and media intervention.32 Emperor of Corruption

Rs. 2,500 CroreThese 10 Companies Deserve 'Additional Incentives’! The total value of additional The kickbacks to theincentives that were extended heads of the government to 10 companies Rs. 2,500 CroreRs. 5,000 Crore Chandrababu gave additional incentives to 10 companies, going beyond the announced industrial policy. This GO shows the additional incentives that were showered on Tarakeswara Textiles Pvt. Ltd. The Chandrababu Naidu government decided to provide 'additionalincentives' to 10 companies for reasons best known to him. For this, thegovernment went beyond its present industrial policy and this decision cost theexchequer Rs. 5,000 crore. It is learnt that half of this amount Rs. 2500 crore wouldreach the government heads. While the new industrial policy of the state allowsonly 50 % subsidy in VAT and power charges to new industries, but these 10companies were given 100 % reimbursement in VAT and CST! Besides this, recently, the govenrment has released industrial incentivespending for the last few years to their choicest industries even without asking,setting aside several other industries which are entitled to the same incentivesand are waiting eagerly for the release of the same. Emperor of Corruption 33

Pushkaram FundsGone Godavari Way! The total funds allocated for The amount that recycled in Godavari Pushkarams is the form of kickbacks isRs. 1,500 Crore Rs. 750 Crore The Andhra Pradesh government has allocated Rs. 1,500 crore for theworks of Godavari Pushkarams. However, half of that amount Rs. 750crore was pocketed by the ruling party leaders. Out of the total amount ofRs. 1,500 crore, the Roads and Buildings Department was allocated Rs. 782crore, the remaining funds were obligated to other departments. Duringthe execution of the works, no rules and standards were complied with.The works below Rs. 10 lakh were given to the ruling party men onnomination basis. The Roads and Buildings Department issued an orderto this effect, thus setting aside the transparent tendering process. BJP MLC Somu Verraju complained to the Vigilance Department thatout of Rs. 782 crore, Rs. 400 crore was snatched away due to theubiquitous corruption in the works.Mantri has Every Right to Cheat!!The amount that was appropriated by relatives, The bribe amount is confidants of the Agriculture Minister Rs. 100 CrorePrathipati Pulla Rao is Rs. 200 Crore. Allegedly the Chief Minster backed a scam which was perpetuated by theAgriculture Minister Prathipati Pulla Rao; who is playing a crucial role in the CapitalRegion Development Authority (CRDA) affairs. He did this scam with the help of acotton trader from Guntur district. Both of them have cheated the cotton farmersof the district by selling their cotton to Cotton Corporation of India (CCI) in thedisguise of farmers. They used their relatives and brokers to sell cotton to the CCI.The Vigilance and Enforcement Department report on this issue has made it clearthat 80 % of the purchases conducted by the CCI in Guntur district were bogus. Though there was sufficient evidence for the role played by the Minister in thescandal, the Chief Minster rubbished the report and backed the minister. As ofnow, the scam is under CBI probe. According to an estimate, the rapaciousminister made Rs. 200 crore by sidelining the farmers and paid Rs. 100 crore to theChief Minister for the protection.34 Emperor of Corruption

Rs. 2,637 CroreExploitation of Sand Mafia The actual income that was supposed to be earned bystate government in sand miningRs. 4,480 CroreThe actual income earnedRs. 964 Crore The money that was swallowedRs. 3516 Croe The 75% of the The GO. No. 94 which presented the new sand policyamount went to the Chief Minister Chandrababu Naidu and his son Nara Lokesh i.e.Rs. 2,637 Crore In Andhra ➤ The total number of sand reaches in thePradesh, the sand state is 383. Out of them, 83 are major sandmining is taking reaches and the remaining 300 are minorplace in 383 sand reaches.reaches. The statehas about 83 major ➤ The AP government took a decision tosand reaches on entrust the sand reaches to Dwacra womenKrishna, Godavari, on August 28, 2014.Penna andTungabadhra rivers ➤ Sand sales started on October 15, 2014, atand 300 minor the price of Rs. 650 per cubic meter.reaches. ➤ The government declared that it has When the price earned the revenue of Rs. 964 crore fromwas Rs. 40/cubic the sand sales between October 15, 2014,meter before and February 2016, meaning 17 months. That also implies that the amount stands at Rs. 680 crore per annum. Emperor of Corruption 35

Chandrababu'sregime, the totalrevenue earnedwas Rs.120 croreper annum for the383 reaches inSeemandhra. Withthe New SandPolicy ofChandrababu, the The clipping which shows the state Finance Minister Yanamalaprice has gone up Ramakrishnudu, who was confessing that an open robbery offrom Rs. 40/cubicmeter to Rs. 650/ Rs. 2000 crore took place in the name of the sand miningcubic meter, which is is a 16 times jump. This also means that therevenue from sand mining should have been Rs. 120 crore x 16 times i.e.Rs. 1,920 crore. According to government statistics, it got only Rs. 964crore income in 17 months, which makes Rs. 680 crore per annum,clearly showing the scam of Rs. 1240 crore (1920-680) per annum, thismeans for 2 years, a scam of Rs. 2,480 crore has taken place. In additionto this, the lenience given to some TDP leaders to mine the sand illegallyis causing the loss of another Rs. 1000 crore per annum, i.e. Rs. 2,000crore for 2 years.In total, the state government was supposed to get Rs. 4,480 croreincome from the sand mining. However, it has got only Rs. 964 crore for17 months. The state government got no income on sand mining aftergifting away the sand reaches to TDP men in the name of free sandpolicy in February, 2016. This effectively means Rs. 3,516 crore of publicmoney had gone to private pockets. There are allegations that 75% of it(Rs. 2,637 crore) had gone to the Chief Minister Chandrababu Naidu andhis son Nara Lokesh. The state Finance Minister YanamalaRamakrishnudu at a press meet confessed the sand scandal worth Rs.2,000 crore.Now, the AP government has announced a new sand policy, whichmeant to give sand for free of cost to the people. However, the free sandpolicy is meant only for TDP leaders. Today, the party leaders haveoccupied the sand reaches and selling the sand to the people. This thelatest looting opportunity for the rank and file of the ruling party.36 Emperor of Corruption

Rs. 670 CroreThermal Projects of Favoritism The additional payments made by The kickbacksAPGenco in the two thermal projects Rs. 670 Crore Rs. 2,680 Crore The NTPC qualifying requirements which said completion of one thermal project was sufficient to participate in its tender process The APGenco requirements that set the completion of at least two projects as the eligibility criterion to favour BGR group Chandrababu Naidu inflated the prices of the works of proposed thermalpower plants at Krishnapatnam and Ibrahimpatnam. The APGenco hasawarded two 800 MW power projects, Krishnapatnam TPP to Tata ProjectsLtd. at Rs. 6.3 crore/MW and Ibrahimpatnam TPP to BGR company at Rs. 5.85crore/MW, respectively, which are quite a high rate by any norms of theindustry. While in other states like Telangana and Gujarat, cost per MW isranging from Rs. 4.4 crore to Rs. 4.76 crore; that too both these projects are ofthe same specifications. Though the Boiler, Turbine, Generator contracts of both the plants wereawarded to BHEL, a government undertaking, the 'Balance of Plant' contractswere given the private companies. To award contracts to these companies, the APGenco adopted a criterionwhich was more stringent than those used by the NTPC to reducecompetition. Despite its present financial difficulties, the AP Genco was readyto pay Rs. 2,680 crore extra to the contractors. As this transaction was madepublic by Sakshi daily and a PIL was filed in the High Court, the contractprocess was halted temporarily. But, what is ironic is the fact that the processtook place. Emperor of Corruption 37

Rs. 4,000 Crore Huge Scam inElectricity DepartmentThe ‘differences’ in power The money purchases from that paid as the bribe is private companies is Rs. 4,000 CroreRs. 15,000 Crore While the AP Electricity Regulatory Commission has confined the powerpurchases to 735 million units, the Discoms have bought 13000 million units There was a huge scam in AP Electricity Board. According to anestimate, about a Rs. 15,000 crore scam has taken place in powerpurchases from the private power plants. From that amount, bigwigsof the government have pocketed at least Rs. 4,000 crore. The Chief Minister and his son displayed extraordinary keenness inthe activities of APTransco and APGenco. They micromanaged thecontracts, the power purchases as well as other tenders. Though therewas no need, the government bought power from private supplierswith the pretext that the state always would be in the need of38 Emperor of Corruption

additional power. The state government never encouraged AP Gencoto increase its power production and gave priority to private powerpurchases. Chandrababu Naidu gave orders to purchase 2000 MW powerright after he took over the office though there was no need. TheDiscoms had to take this burden. Between May 2014 and October2015, a total of 13,180 million units of power were purchased from theprivate companies. Its value is not less than Rs. 8,289 crore. Someportion of this power was bought at a record rate of Rs. 10 per unitwhile the APGenco could produce the same unit at Rs. 4.50. There hasbeen a discussion in the Power Department that Nara Lokesh, son ofthe CM, took huge kickbacks from the companies that benefited fromthese transactions. Indian Energy Exchange Laid it Bare The letter of IEX which exposed AP Government's generosity towards private power companies The Indian Energy Exchange (IEX), the country's largest power tradingcorporation through its letter to AP Electricity Regulatory Commission(APERC) made it clear that Chandrababu government was purchasingpower at higher prices despite the availability of better option. The IEX offered the power at the price of Rs. 1.90 per unit (duringnights) and Rs. 2.71 per unit (during the day time). Despite the availabilityof power at lower prices, the power distribution companies (Discoms) ofAndhra Pradesh is buying the power at a whopping rate of Rs. 5.11 perunit. The IEX has reported this questionable practice to the APERC. Emperor of Corruption 39

In 2015-16 too,the maximumprice of the powerin the open marketwas Rs. 3.77 perunit (24 hours)while night hourswas at Rs. 2.72. TheIEX has questionedwhy the APgovernment couldnot utilize thisopportunity. (TheAP Discoms haveplaced short-termpower purchaseorders for more than 16,000 million units of power during thisperiod at higher prices.) The Discoms have proposed to buy 64,706 million units in2016-17 financial year. Out of this, the production of APGencoand the state share from the central grid account for 39,420million units. The Discoms are going to buy remaining 25,286million units from the private power companies.40 Emperor of Corruption

Rs. 245 CroreCM's Relative is always a 'Worthy' Man! The land that is worth of Rs. 250 Benefit iscrore was gifted to a relative of the Rs. 245 Crore Chief Minister for only and above Rs. 4.99 CroreThe GO that allocated 498.93 acres of land to VBC Fertilizers and Chemicals Ltd. near Jaggayyapet, Krishna district. While an acre of land costs Rs. 50 lakh here, it was allocated for only Rs. 1 lakh The TDP government gifted the land which is actually worth Rs. 250crore for only Rs. 4.99 crore to M. S. P. Rama Rao, a relative of CM and actorBalakrishna. The land that was located in Jayanthipuram nearJaggayyapeta was gifted to VBC Fertilizers and Chemicals Ltd., whichbelongs to Mr. Rao, who is the son of former TDP MP M.V.V.S. Murthy, aclose confidant of Chandrababu Naidu. This land was previously earmarked for an industrial park by APIndustrial Infrastructure Corporation. A GO (No: 523) was also issued bythe previous government to this effect on September 28 of 2013.Amending this GO, Chandrababu government issued another GO (No:269) on July 15, 2015, and allocated the land to VBC Fertilizers andChemicals Ltd. for the purpose of establishing a urea manufacturingplant. Emperor of Corruption 41

One Hand Proposes, Another Hand Approves The value of land that was allocated to NTR Trust in three districts is Rs. 100 Crore The GO that allocated the land in Kakinada to NTR Trust Chandrababu Naidu made strategic moves to grab valuable land in allthe district headquarters. As the Chief Minister, he approved theapplications that sought land allocation to NTR Trust. Interestingly, he wasthe one who made these applications when he was chairman of the trust.That means he made an application for the lands with one hand andapproved them with another after became Chief Minister. He is nowgoing to extend this method to rest of the districts. In the heart of Srikakulam town, 1.29 acres of land (Survey No: 700-1)and another 0.71 acres of land (Survey No: 701-1) were allocated to NTRTrust. This land was earmarked for the needs of the municipalcorporation. However, the same land is allocated to NTR Trust. To thiseffect, orders were released on August 4. The land was leased to NTR Trustfor 99 years at annual lease fee of Rs. 25,000! Likewise, the 2000 sq. yardsland that is located in the heart of Kakinada city was also allocated to NTRTrust. The market value of this land is about Rs. 25 crore. In Kadapa, oneacre land in the located in the centre of the city was also allocated to theTrust for Rs. 10 lakh. The market value of this land is about Rs. 50crore. Thedecks are being cleared to make similar allocations in rest of the 10districts.42 Emperor of Corruption

Rs. 500 CroreFour Departments for Party CadreThe value of the works 75% of it i.e. Rs. 500 Crorethat were allocated on was converted into commission which paid at different levels of nomination basis governmentRs. 695 Crore The memo that granted 34 works of the Irrigation Department worth Rs. 13.66 crore on nomination basis The Chandrababu Naidu's government is leaving no stone unturned tomake money for party men. One of the direct ways to do so is to award themthe work contracts on nomination basis without calling for any tenders. Suchworks are majorly available in four departments viz. - Irrigation, MunicipalAdministration, Panchayat Raj and Roads and Buildings Department. So far,Rs. 695 crore worth works have been awarded to the ruling party cadre inthese four departments on nomination basis. These works do not include theworks of Water and Tree scheme, which also offers massive workopportunities. GO no 34 was issued to increase the value of work onnomination basis to facilitate this robbery. Rs. 350 crore worth works in Irrigation Department, Rs. 75 crore worthworks in Municipal Department, Rs. 120 crore works in Panchayath RajDepartment were awarded to the TDP cadre. As these are the Rs. 10 lakh-below works, they are also not being audited. As a result, nobody is actuallycaring for the quality of the works and a massive corruption is taking placeright under the nose of the government. Despite the protests fromopposition parties, the government is in no mood to look into the problemsof the nomination based work allocation. The state Vigilance Department has given a report to the government thatfunds have been misused in the nominated works in Guntur and Anantapurdistricts. As usual, the government ignored the report and nomination spreecontinues. Emperor of Corruption 43

Rs. 1,800 CroreWater, Tree and Evergreen Favouritism The value of the Water and 75 % of it i.e. Rs. 1,800 Crore Tree Scheme works that wereallocated on nomination basis is has been appropriated by the leaders of theRs. 2,444.90 Crore government and ruling party The GO that increased the monetary limit of the works of Water and Tree Scheme from Rs. 5 lakh to Rs. 10 lakh Corruption spread its tentacles to each village in Andhra Pradesh afterChandrababu Naidu became its Chief Minister. The Water and TreeScheme that was supposed to preserve the ecological environs hasbecome a major source of corruption in the state and a source of incometo ruling party cadre. As these works are being allocated on nominationbasis, it has become a scheme of ruling party's rank and file. In 2014-15 financial years, Rs. 2,444.90 Crore worth works wereawarded on nomination basis under this programme. Though the ChiefMinister talks about financial hardships of the new state repetitively, thebills of Water and Tree Scheme are being paid without any delay. Duringhis last tenure, the Chief Minister took a loan of Rs. 1400 crore from WorldBank for a similar programme and spent at least half of the amount.However, now, the ruling party cadre is spending only 25% on the worksand rest of the 75% is being used for distribution among the party cadre,44 Emperor of Corruption

leaders and the government officials. This effectively means the government has abetted corruption worthof Rs. 1800 crore. The works such as tank desilting, construction of ruralroads, digging works are being taken up under the below-Rs. 10 lakhcategory. Most of the times, the ruling party cadre are showing the worksthat were already done as fresh works. Or else they are doing thempartially. As there is no auditing of these works, it was very easy for themto make money out of these works. Rules that Favour Exploitation The High Court has faulted the awarding of works worth Rs. 5 lakh andabove on nomination basis. However, it did not change a thing for APChief Minster Chandrababu Naidu. He rather changed the rules andstarted offering works upto Rs. 10 lakh on nomination basis. He hasdivided all the works of Water and Tree scheme into smaller works of Rs.10 lakh and distributed them generously among his party men. The state government issued a memo (No: 1044/CAD-1) on January27, 2016, ordering the speeding up of the works of Water and TreeScheme. On top of it, the Water Resources Department issued anothermemo on March 20 directing to pay Rs. 29 for each cubic meter of silt indesilting works. It ordered to entrust desilting works of the tanks thathave 100 acres and above ayacut to Irrigation Water Committees. OnFebruary 20, the same department issued another memo which statedthat desilting works of tanks that have less than 100 acres ayacut need tobe executed by Janamabhoomi Committees. These memos ensured thatthe committees that are of the ruling party members get the contractworks bypassing the duly elected panchayat raj system. The following are the works and theirexpenditure under Water and Tree programme: –S.No. Name of Work Number Expenses (in Rs. in Cr.)1. Tanks Desilting 15.55 crore cubic meters 1192.522. Check Dams and Percolation Tanks 25,308 188.563. Farm Ponds 73,777 119.194. Other Structures of Water Storage 80,230 711.205. Revival of Lift Irrigation Schemes159 233.43 Total 2444.90 Emperor of Corruption 45

Rs. 900 CroreCentral Funds Misappropriated The funds released by 75% of it the Centre for Rs. 900 Crore village panchayats has gone into theRs.1,217 Crore pockets of TDP men Chandrababu Naidu's government did not allow the Centralgovernment funds to be spent for the purposes they were allocated. Thecentral funds of Rs. 1,217 crore were diverted by the AP Government andwere used for works of nomination basis. The state government started anew scheme named 'Wadawadalaa Chandranna Baata' (which translatesinto Chandrababu's Path in Every Locality) by appropriating the funds ofthe Finance Commission and National Rural Employment GuaranteeScheme (NREGS). In 2015-16 financial year, the state government set a target to build3,043 kilometers rural roads at the cost of Rs. 1,217 crore. Most of theseworks were divided into the works of Rs. 5 lakh value and were giftedaway to the TDP men in the villages through the Engineering Division ofPanchayath Raj Department. According to the departmental sources, theTDP cadre is spending only 25% of the funds and appropriating theremaining substantial share. By March 2016, works worth Rs. 685.60 crore were completed andanother Rs. 531.60 crore worth works were yet to be completed. Funds ofthe Finance Commission and the NREGS have to be spent under thesupervision of village sarpanches. However, the AP state governmentcurtailed the rights of local bodies and unethically diverted funds to itsparty cadre through nomination method by Janmabhoomi Committeeswhere elected sarpanch is only a spectator. Though there is an option to increase the labour component up to 100% in NREGS , the TDP government has confined it to 60 %, considerablybringing down the work days available to the rural poor. As a result, a lotof people are migrating to other states in search of work, while machineryand material supply dominate these works.46 Emperor of Corruption

Rs. 338 Crore A Friend in Deed The GO that allocated 50 acres land to eCentric Solutions Pvt.Ltd., the company of Lokesh friend Sridhar, in Vizag The state government cleared decks to gift a land worth Rs. 363 Croreat just Rs. 25 crore to the company of a friend of Nara Lokesh. The APIndustrial Infrastructure Corporation (APIIC) is going to allot the land toeCentric Solutions Pvt.Ltd., the company of Sridhar, a friend of NaraLokesh. While the AP Land Management Agency (APLMA), whichfunctions under the Chief Commissioner of Land Administrationproposed that the value of an acre was Rs. 7.26 crore, the state cabinet setaside the agency's recommendation and decided the land value was Rs.50 lakh per acre.The market value of this land is said to be thrice to theprice decided by the APLMA. The APLMA recommended APIIC that the 50-acre land has to beallocated at the price of Rs. 363 crore (Rs. 7.26 crore per acre) through itsresolution on October 16, 2015. However, the cabinet decided to transferthe land to APIIC. To this effect, the Revenue Department issued GO No:428 on November 12, 2015. The APIIC is going to allot the land to eCentricSolutions at the price of Rs. 25 crore. Because of this cabinet decision, thestate exchequer lost Rs. 338 crore. Emperor of Corruption 47

Rs. 40 Crore Gift to Galla Family The GO that allocated the land to Mangal Industries, which belongs to Galla family Chandrababu government gave away the prime land in temple townTirupati at a throwaway price to a company which belongs to the TDP MPGalla Jayadev. The land is located in Karakambadi on Kadapa-Tirupatihighway and its value is Rs. 43.38 crore. However, the land was given toMangal Industries of Galla family at just Rs. 4.88 crore. The 21.69 acres landpatch was given to Mangal Industries at the value of Rs. 22.50 lakh peracre; the GO no: 430 was issued to this effect by the Revenue Departmenton November 12, 2015. It is very difficult to secure land in Karakambadi area, which is verynear to Renigunta Airport, Tirupati and Renigunta railways stations,Tirupati bus stand and Mangalam bus depot. The market value of the landis Rs. 2.5 crore per acre but the government allocated it for Rs. 22.50 lakhper acre. Galla Aruna Kumari, a former minister and mother of GallaJayadev, could not get this thing done while she was a minister in theunited AP cabinet. However, Chandrababu got it done for her very easily.48 Emperor of Corruption

Special Development Fund No More! The GO issued Rs. 2 crore to Silpa Chakrapani Reddy by mentioning him as Srisailam MLA, while the actual MLA is Budda Rajasekhar Reddy from YSRCP The GO that issued Rs. 2 crore to Tuni Constituency TDP In-charge Yanamala Krishnudu, while the actual MLA is Dadisetty Raja from YSRCP The misuse of monies of Special Development Fund (SDF) is anotherirrefutable proof for the TDP government abuse of public office. Thegovernment was not satisfied with gifting away the liquor shops, landsand sand reaches; it is also gifting the SDF grants- which are intended forthe development of constituencies- to its party leaders. These funds areallocated according to the recommendations of local MLAs. However, thegovernment set aside these regulations to distribute the funds among itsleaders. While these funds are to be evenly distributed among the MLAs, theTDP government is making use of the 'discretion of CM' and not grantingany funds to the opposition YSRCP MLAs. Wherever there is opposition Emperor of Corruption 49

The GO that allocated Rs. 2.1 crore funds toDhone constituency Telugu Desam Party In-charge K.E. Pratap. How is it fairthat the CM can allot funds to anybody of his choice? In which case, where is the democracy?MLAs, the SDF grants are being granted to TDP constituency in-charges .Thus, the government funds are being converted into party funds. Eventhe GOs issued by different departments are also mentioning the TDP in-charges. Can the Chief Minister issue GOs giving away public moneyinvolving crores on the names of anybody of his choice? Rs. 10 Crore‘Additional’ to Nellore Barrage Irrigation Department regulations were set aside to make additionalpayments to the contractor of Nellore Barrage. The orders were issued topay an additional amount of Rs. 22.68 crore to the contractor at thebehest of the Chief Minister. The state government did not back off fromits decision despite a serious objection from the Finance Department. Inthe additional amount, Rs. 10 crore reached the government heads. Rs. 120 Crore Kuppam Branch Canal Works only for Cronies The Chief Minister insisted that the Kuppam canal branch works should beawarded to TDP Kadapa district president. This was against the existing ruleswhile it is important to note that his company was the only company whose pricebid was opened. This decision was resisted by Principal Secretary of FinanceDepartment P. V. Ramesh. However, the Chief Minister prevailed over him andgifted the contract worth Rs. 430 crore to his party man. Out of this amount, thecontractor is set to pocket Rs. 120 crore.50 Emperor of Corruption

Rs. 214 CroreBoon to Vamsadhara Contractors The government wants to increase the costs of remaining works in 86,87 packages of Vamsadhara Project Second Phase from present Rs. 90crore to Rs. 429 crore. For this, the government weakened the rule whichmakes the consent of the High Power Committee headed by the ChiefSecretary mandatory for all the works that are above Rs. 100 crore. As aresult, the Chief Minister and the Irrigation Minister are going to pocket50 % of the escalated cost Rs. 214 crore. Rs. 200 Crore Lokesh Deal with Millers In March 2015, the AP state cabinet took a decision to waive off VATdues of the rice millers to the tune of Rs. 500 crore which were supposedto pay by the date of state bifurcation. Apparently, Nara Lokesh wasbehind this deal. He received 200 crore from this decision. The storybehind this decision is as following. The state government pressurized the millers to pay the VAT duesthrough the officials of Commercial Tax Department. At the same time,Lokesh sent a message to the millers that their dues could be waived offif they were ready for a deal. The millers responded positively and addedone more demand to their wish list i.e. the complete waiver of VAT onfuture rice exports. At the behest Lokesh, the government agreed to theirdemand and the transaction has been closed successfully. Emperor of Corruption 51

Rs. 100 CroreChandranna’s Kanuka The GO that issued funds for Chandranna’s Gift scheme The ruling TDP leaders made Rs. 100 crore by supplying sub-standardprovisions to people under the ‘Chandranna’s Kanuka’ scheme duringSankranti festival of 2016. The government spent Rs. 270 per head and Rs430 crore in total on this scheme. Though the contractors sourced yellowlentils at a higher price and supplied inedible jaggery and wheat flour, thegovernment did not take any action against them!Buttermilking the State - Rs. 39 CroreTaking advantage of the overheat conditions in Andhra Pradesh state,Chandrababu drew a plan to pocket away Rs. 39 crore by buying milkproducts from his own company Heritage Foods for his government's buttermilk scheme. Without calling for tenders or giving preference to cooperative dairies, Chandrababu ordered the district collectors to buy curd and buttermilk from Heritage Foods for the \"buttermilk distribution scheme\". An order issued by Vizianagaram district collector, which is making rounds in the social media, has shown the extent of abuse of power by Chandrababu Naidu. Now, theThe Order of Vizianagaram District Collector entire Rs. 39 crore is going intoInstructing the Tehsildars to buy Heritage Products the accounts of Heritage Foods.52 Emperor of Corruption