The Kakinnanda Port Scam
Thats Bolla Bulli Ramaiah TDP Mp
Kakinada's deep-water port is the second largest in the state after Visakhapatnam port and is the first port in the country to be built on a Public Private Partnership basis (in 1996). It is operated by Kakinada Seaports Limited http://en.wikipedia.org/wiki/Kakinada
According to the WP Chandrababu Naidu had already preselected his favoured consortium where the son of the former TDP Minister of Commercial Taxes, Smt J Padmavathi who was allegedly acting as a benami of Sri Chandrababu Naidu
So effectively the WP alleges Naidu illegally partly owns the company which got the Kakinnanda port contract
According to the WP when the RITES evaluation report practically disqualified Naidus Benami partnership he tweaked the rules to favour Mahatir Mohamads son
The terms and conditions of the award of the contractor was, on several occasions, amended to the benefit of the private developers, entailing huge loss to the State Exchequer. This project has since become highly profitableIn addition, as per the contract, the consortium needs to pay Minimum guaranty amount (MGA) every year but it didn't do so even though started making revenue from Day 1 itself, which was found fault with by the CAG, with losses to the State exchequer calculated at Rs.53 crores for the period from 1999-2007
Strangely despite the claims of fraud and illegalities by Mirzan bin Mahtir he is not named as repondent like Ambani this seems another fishing expedition
Chittoor Dairy
The Chittoor Dairy was a cooperative under the State, which was destroyed by Sri.Chandrababu Naidu for the benefit of his own dairy named M/s. Heritage Foods India Limited. How he misused hispower is depicted in several studies
Significantly, partners of the consortium created sham Mauritius companies like PSA Bulk terminal limited, SSA Asia holdings limited which were allotted shares in Kakinada Seaports Ltd and subsequently, those shares transferred to L and T. So, it is evident that Sri.Naidu who violated all the norms for this consortium largely benefited from these companies. Interestingly, Everlink Asia Investment (a mysterious company which made misrepresentations to theRoC, ICRA and Ministry of finance (PPP toolkit) regarding its location and registration) had a substantial stake holding, which
was later claimed to be transferred to L&T. Here a purported beneficiary of the entire transaction is amply clear and it is noneother than Sri. Naidu. It may be noted that L&T was a major beneficiary of Sri.Naidu’s largesse in the State, as is evident from Hitec City and the construction of the NTR Trust Bhavan free of cost.
Shares were also found to be allotted to Sri.Bolla Bulli Ramaiah’s South India Infrastructure development Company.Sri.Ramaiah was a TDP MP from Eluru constituency between
1999 and 2004, which was the critical time when the port
The role of Sri.Karnati Venkateswara Rao who is presently CEO of Kakinada port is to be investigated as he is holding Chandrababu’s interests in fiduciary capacity in the name of various companies incorporated in Singapore, Malaysia and
Mauritius mentioned supra.
Infact, instead of expanding Kakinada port, The consortium expanded to SEZ operations with Kakinada SEZ limited. Sri. Karnati Venkateswara Rao is holding the entire shares in this company through Kakinada investments and holding limited
The Privatisation scam para 17
Sri Naidu’s one sided approach was criticized by Oppositionand industry experts. According to the reports of CPI (M), the State Government has lost huge amounts by doing favours to certain industries by liquidating the assets for nominal rates.
The Government had ignored the reports of District Collectors and higher officials of firms and liquidated the state level enterprises and cooperatives for a sum of mere Rs.209 crorewhere the market value of those firms was accounted forRs.636 crore.
There was also clear suspicion that most of the lands and enterprises were handed over to the ruling party members and their associates.
Despite the partnership summits which were organized in Hyderabad during Sri.Naidu’s regime, and his official trips to Europe and USA, no substantial FDI was received by the stateof Andhra Pradesh from the West. Interestingly, almost all thecontracts like Kakinada Sea Ports, Raintree park situated atHyderabad, GMR International Airport, Ascendas IT park, AP Gems and Jewellery Park, and Emaar township were awarded to international companies of Malaysia, Singapore or UAE.
The then Prime Minister of Malaysia Sri. Mahathir Mohammed had stepped down after facing severe corruption charges in his country. Sri.Naidu’s personal friendship with Mahathir is not a secret to the observers of international relations. Sri Mirzan Bin Mahathir, the elder son of Mahathir Mohammed was the Chairman of the International Seaports Consortium and even has a majority stake in the said company which got the Government that can only examine this by issuing Letters of Request under the PMLA Act.
Again like the ambani allegation another shot in the dark Mahatir didnt resign for corruption he went for political reasons
Again like the ambani allegation another shot in the dark Mahatir didnt resign for corruption he went for political reasons
In addition, as far as the AP Gems & Jewellery Park is concerned, Sri Naidu via APSTC gave 2.6 acres in 2002 in Banjara Hills to Chukkapalli Suresh (MD of AP Gems and the brother of a TDP candidate). A company named IOI India headed by C.Suresh gets financial funding from its holding
company IOI Mauritius. Sri Naidu is the owner and beneficiary of IOI Mauritius, which is using its subsidiary in India to launder illegal moneys.
From a small turnover of Rs.61 Crores in 2003, Rithwik Projects returned a turnover of Rs.488 crores by 2009 as a Sub-Contractor which speaks about the inexplicable and phenomenal growth of the company. There was regular infusion of capital into the company annually, which is surprising
Mr.C.M. Ramesh is a senior TDP functionary and a close aide of Sri Chandra Babu Naidu. Sri Ramesh is the Chairman of Rithwik Projects Limited, a Contracting company. Rithwik Projects Private Limited is another company which holds Sri Chandra Babu Naidu’s ill-gotten money. This is the reason for the elevation of Mr.C.M.Ramesh as the top functionary in the TDP
Mr.C.M. Ramesh is a senior TDP functionary and a close aide of Sri Chandra Babu Naidu. Sri Ramesh is the Chairman of Rithwik Projects Limited, a Contracting company. Rithwik Projects Private Limited is another company which holds Sri Chandra Babu Naidu’s ill-gotten money. This is the reason for the elevation of Mr.C.M.Ramesh as the top functionary in the TDP
This is one scam which is very clear case of missuse of Power
see the India today article on the scam
The Government of A.P. headed by Mr.Chandrababu Naidu as the Chief Minister of the State entered into a MoU on 9.8.2003 with IMG, a company registered under the Companies Act,
1956 incorporated by Mr.Ahobala Rao and Mr.Prabhakara Rao for transfer of 855 Acres of land and to develop Stadia in Hyderabad and Ranga Reddy District.
The terms of this MoU clearly indicate that the invaluable public property and lands were provided to be alienated without there being any control of the Government in regard thereto.
It is interesting to note that these very 2 brothers were earlier engaged by Mr.Naidu in the Kuppam Project in his own Assembly constituency of Chittor. Mr.Ahobala Rao is a close associate and confidante of Mr.Naidu since 1994 according to the print and electronic media. He acted hand in glove with Mr.Naidu, and since the entrustment of the Kuppam Project to the Rao brothers, they became very close to Mr.Naidu. IMG did not even have a proposed office or address to function at the time of incorporation. In the Memorandum of Association submitted to the Registrar of companies, the registered office address was shown as the “State of Andhra Pradesh”.
According to the MoU the 400 Acres of the lands agreed to be transferred to IMG were part of the University of Hyderabad Campus which is serving the best interests of the State and the
General public. It is a prestigious institution imparting several courses to the students and conducting research studies in various subjects. The other block of land was an extent of 450 Acres near the proposed Shamshabad International Airport which has now become very prime and valuable after the commencement of International Airport.
The Stadia promised to be conveyed under the MoU were recently developed, spending nearly 125 Crores of Rupees. The Government further agreed to pass on several concessions on
Tax, Power, Water and sewerage tariffs in addition to the concessions that are available to the educational institutions in the State, under clause 2(XV) of the MoU.
The terms of the MoU were settled in such a way that even when the State in exercise of its legislative powers annuls the deal, the Rao brothers were provided protective clauses to
enforce damages against the State.
Yet another facet of the MoU is clause 2(II)(ii) and Annexure-5 of the MoU. According to the said clause all the existing stadia in Hyderabad and Ranga Reddy district shall be leased out to IMG (Maintenance grant of Rs. 2.5 Crores payable by the landlord, the State) for a period not less than 45 years with the option to IMG to purchase all such properties at the price deduced according to the formula in Annexure-5 of the MoU.
According to Annexure -5 the price of the Property shall be the basic value of the property around the Stadia as on the date immediately prior to the date of the MoU (9.8.2003) minus (-) expenditure incurred by IMG towards the maintenance and upkeep (MU) and the depreciation on the buildings.
http://fraudex-2012.blogspot.com/2011/11/alleged-scams-of-chandrababu-naidu.html
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