BRS leader K.T. Rama Rao has urged the Union Finance Minister to suspend the Rs 2,059 crore PM Ekta Mall project in Hyderabad, citing alleged tender manipulation. He claims the current terms unfairly favor a private consortium regarding commercial space allocation and financial structures. The project, which utilizes public land and central funds, now faces potential investigation risks.
K.T. Rama Rao (KTR), the working president of the Bharatiya Rashtra Samithi, has formally petitioned Union Finance Minister Nirmala Sitharaman to intervene in the PM Ekta Mall project in Hyderabad. The project, estimated at Rs 2,059 crore, is currently under the spotlight following allegations of significant irregularities in the tender process and financial structure of the development.
The project is situated on 6.3 acres of prime land in Raidurg and has secured Rs 202 crore in central assistance. KTR’s primary concern involves the consortium selected for the development, which includes Vamsiram Builders & Developers Pvt Ltd and Aparna Infrahousing Pvt Ltd. In his letter to the Finance Ministry, he argued that the tender conditions were structured to disproportionately benefit these private entities. Specifically, he alleged that the current agreement entitles the private developer to 18 lakh square feet of commercial space, which is double the 9 lakh square feet allocated to the state government.
Beyond space allocation, the petition highlights concerns regarding the financing model. KTR alleged that an interest-free loan of Rs 200 crore, provided under a central scheme for capital investment, is being routed through the Telangana Trade Promotion Corporation Limited to the developer on a back-to-back basis. He contended that the tender terms allow for the offset of project preparation and consultancy costs against these public funds, which he claims lacks transparency and necessitates an independent audit.
For stakeholders and observers, the immediate risk lies in the potential for project suspension or re-tendering if the central government finds merit in these allegations. The involvement of central funds under the SASCI scheme makes the project subject to compliance oversight. If an investigation is launched, it could lead to a freeze on further fund releases, causing significant delays to the project timeline and complicating the operational status of the involved private entities.
The key monitorable for the coming weeks will be the Union Finance Ministry’s response to these allegations. If the ministry initiates an inquiry or requests a detailed report from the state, it could lead to a comprehensive review of the tender evaluation process, land valuation methods, and the commercial rights granted to the private consortium.