The Supreme Court on Monday issued a notice to Telangana, BHEL and others on a petition alleging a huge scam of Rs 35,000 crore in the Palamuru Ranga Reddy Lift Irrigation Project.
The petitioner, a former MLA from Andhra Pradesh, alleged a huge scam in the Palamuru Ranga Reddy Lift Irrigation Project.
The Palamuru Rangareddy Lift Irrigation Scheme (PRRLIS), undertaken by the state of Telangana, has four stages of pumping stations in a total of 18 packages.
These are designed to lift large volumes of water from the Srisailam Reservoir on the Krishna river as it passes through Mahbubnagar district of Telangana.
Advocate Prashant Bhushan, appearing on behalf of the petitioner, told the apex court that a key tender related to the project involved thousands of crores worth of financial irregularities. Specifically, the tender relates to electro-mechanical equipment manufactured by state-run Bharat Heavy Electricals Limited.
The advocate requested the Supreme Court to initiate an investigation into the matter by the Central Bureau of Investigation. Petitioner Janardhan Reddy had cast allegations that unknown parties had manipulated the cost of pumps for said irrigation project. Prices of these pumps were hiked from INR 5,960.79 crore to INR 8,386.86 crore, he alleged.
The petitioner also challenged an order issued by the Andhra Pradesh and Telangana High Court dismissing his earlier plea for a probe.
In his petition, the former MLA Dr. N. Janardan Reddy alleged that the Telangana state government and the state-run BHEL had illicitly joined forces to cause heavy losses to the national exchequer.
Recent reports in the media indicate the Power Finance Corporation of India has agreed to provide a loan amounting to INR 30,000 crore for the ongoing Kaleshwaram and Palamuru Rangareddy Lift Irrigation Projects.
The state-run corporation has committed to invest INR 18,000 crore specifically for the Palamuru Rangareddy Lift Irrigation Project.