Kancha Gachibowli land row: KTR accuses CM Revanth of masterminding Rs 10,000 crore financial scam

Hyderabad: Bharat Rashtra Samithi (BRS) working president KT Rama Rao accused chief minister A Revanth Reddy of orchestrating a massive Rs 10,000 crore financial scam involving Kancha Gachibowli lands near Hyderabad Central University (HCU).

Addressing a press conference at Telangana Bhavan here on Friday, KTR alleged that the Congress-led State government not only perpetrated a colossal economic fraud but also caused irreversible environmental destruction, describing the episode as a ‘criminal conspiracy’ and a ‘betrayal of Telangana’s trust.’

KTR pointed to CM Revanth Reddy as the ‘architect, executor, and key player’ behind the scandal, vowing that the BRS would pursue the matter relentlessly until justice is served.

KTR calls for investigation and action

The BRS has vowed to escalate the issue to national authorities, announcing plans to file complaints with the Reserve Bank of India (RBI), Serious Fraud Investigation Office (SFIO), Securities and Exchange Board of India (SEBI), Central Vigilance Commission (CVC) and Central Bureau of Investigation (CBI).

KTR urged prime minister Narendra Modi and Union finance minister Nirmala Sitharaman to order a comprehensive investigation to prove their commitment to transparency. “We will submit evidence to every agency. If the Central government doesn’t act, we’ll go to court. We’ll raise this in Parliament through our allies,” KTR said.

KTR also demanded immediate cancellation of the Rs 10,000 crore bonds issued irregularly by the State. “There should be a ban on Trust Investment Advisor and Beacon Trusteeship for their roles in the scam, and a probe should be done into the roles of CM Revanth Reddy, ICICI Bank and the broker companies,” he added.

‘Congress govt has failed to help farmers’

KTR alleged that the Rs 10,000 crore loan, touted as funding for farmer welfare schemes like Rythu Bandhu, was misused to pay commissions and bills to contractors and loyalists in the Congress cabinet.

“They claimed Rs 5,000 crore went to farmers, but even that is doubtful. Where is the remaining Rs 5,000 crore? It’s been siphoned off to their cronies,” he charged.

He accused the Congress government of running a ‘3D mantra’ of deception, destruction and distraction over the past 15-16 months, devastating the lives of farmers, the poor and the middle class.

“Telangana, once a breadbasket for the nation, is now a State where farmers are suffering under CM Revanth Reddy’s misrule,” he said, pointing to the government’s failure to support agriculture as evidence of its priorities.

‘Land near HCU pledged illegally without due process’

KTR has claimed that the State government manipulated 400 acres of forest land adjacent to HCU to secure a Rs 10,000 crore loan from banks.

According to him, the land was illegally pledged without verifying ownership, conducting environmental assessments or obtaining forest department approvals. The Telangana Industrial Infrastructure Corporation (TGIIC), he alleged, mortgaged the land despite lacking legal title, with no sale deed, mutation or alienation process to establish ownership.

Discrepancies in land evaluation

KTR highlighted a glaring discrepancy in the land’s valuation. Initially, the government valued the 400 acres at Rs 30,000 crore, issuing a Government Order (GO) in June 2024 that pegged the per-acre value at Rs 75 crore.

However, five months later, in November 2024, a new valuation by another agency reduced the per-acre value to Rs 52 crore, and a subsequent open-market assessment further slashed it to Rs 41.6 crore, bringing the total value down.

KTR questioned the rationale behind this drastic reduction, alleging it was a deliberate move to facilitate the transfer of the land to CM Revanth Reddy’s associates at a fraction of the inflated value.

Citing the Stamps and Registration Department, the BRS leader noted that the market value in the Kancha Gachibowli area is Rs 26,900 per square yard, translating to a total value of Rs 5,239.84 lakh for 400 acres. “How can land worth Rs 5,000 crore be inflated to Rs 30,000 crore and then conveniently reduced to Rs 16,640 crore? This is a textbook case of financial manipulation,” he charged.

‘Why did ICICI approve 10,000 crore loan without verifying?’

KTR directed scathing criticism at ICICI Bank, accusing it of gross negligence in approving the Rs 10,000 crore loan without verifying land ownership or conducting basic due diligence.

“ICICI Bank has lost all credibility. How can a bank of its stature release such a massive loan based on a broker’s word without inspecting the land or checking documents? This is not just incompetence—it’s complicity,” he said.

He warned that the bank’s reckless lending could lead to its downfall, predicting a ‘collapse’ if such practices continue.

Role of broker companies

The BRS leader alleged that the bank relied solely on assurances from Trust Investment Advisor, a broker company that was paid Rs 169 crore by the State government as a commission.

Another entity, Beacon Trusteeship, was allegedly used as a front to execute the transaction. KTR questioned the bank’s decision to approve the loan despite knowing the land was under litigation, calling it a ‘fraudulent act’ that warrants investigation.

Environmental catastrophe

Beyond the financial fraud, KTR condemned the environmental devastation caused by the government’s actions. He alleged that hundreds of acres of forest land were bulldozed overnight, destroying trees and wildlife habitats.

“This wasn’t just about financial loot—it was about erasing Telangana’s green cover and robbing mute animals of their homes. The nation watched in horror as CM Revanth Reddy’s government unleashed this ecological vandalism,” he said.

KTR cited a 1996 Supreme Court ruling that classified land with forest characteristics—such as the point-four canopy present in the 400 acres—as forest land, regardless of ownership records.

“Under the Forest Conservation Act of 1980, such land cannot be pledged, sold or used for non-forest purposes without Central government approval, a step the State government allegedly ignored. No environmental impact assessment was conducted, and forest department permissions were bypassed, making the entire operation illegal,” he said.

Political collusion and a BJP MP’s role

Adding a political dimension, KTR alleged that a Bharatiya Janata Party (BJP) Member of Parliament (MP) played a central role in facilitating the scam by introducing Trust Investment Advisor to the State government.

He claimed that the MP’s involvement was the sole reason ICICI Bank approved the loan, despite the land’s disputed status. “This BJP MP will be named soon. The state government has promised undue benefits to him through this deal,” KTR said, warning that the Central government’s inaction would confirm a BJP-Congress nexus.

KTR accused the State government of bypassing the Financial Reporting and Monitoring (FRBM) framework to secure the loan, with the broker company demanding a commission for arranging the funds.

He questioned the selection process for Trust Investment Advisor and Beacon Trusteeship, demanding transparency on the rules followed. “Did they get the deal because a BJP MP recommended them? The government must answer,” he said.

Legal violations and accountability

KTR outlined several alleged legal violations in the scam:

1996 Supreme Court Ruling: The court mandated that land with forest characteristics be treated as forest land, regardless of ownership. The 400 acres meet this criterion, making their use illegal.

Forest Conservation Act, 1980: The Act prohibits pledging or selling forest land without Central approval, which was not obtained.

Lack of Environmental Compliance: No environmental impact assessment or forest department permissions were secured.

Fraudulent Transactions: TGIIC mortgaged land it did not legally own, and ICICI Bank approved the loan without verifying documents.

KTR called for the arrest of TGIIC officials and the Industries Department Secretary, accusing them of enabling the fraud. He also demanded accountability from chief minister Revanth Reddy, describing him as the ‘mastermind’ behind the entire operation.

KTR alleges inaction by ED

KTR warned that the HCU land scam is just the beginning, alleging that the Congress government has plans to loot an additional Rs 60,000 crore by exploiting Hyderabad Metropolitan Development Authority (HMDA) lands through similar fraudulent schemes.

“If we don’t stop this now, Telangana’s future will be sold off to CM Revanth Reddy’s cronies,” he cautioned. He accused the government of betraying Telangana’s trust, calling the scam a ‘heinous financial crime’ that undermines the state’s economy and ecology.

KTR also criticised the Central government for ignoring previous complaints against CM Revanth Reddy, including allegations of diverting Rs 1,137 crore to his brother-in-law in the Amrut scheme and inaction on Enforcement Directorate raids against Revenue minister Ponguleti Srinivas Reddy.

Disparity in banking practices

KTR reiterated that the BRS would not let the issue rest, promising to pursue it relentlessly. If the party returns to power, it will thoroughly investigate the scam and ensure justice. “The people of Telangana deserve answers. Every rupee looted and every tree destroyed will be accounted for,” he declared.

He highlighted the disparity in banking practices, noting that ordinary citizens face rigorous scrutiny for small loans while influential players secure massive loans without verification. “This is what happened here. ICICI Bank didn’t even check if the land existed, let alone who owned it,” he said.

KTR appeals to the Central government

KTR expressed hope that the PM and finance minister were unaware of the scam, urging them to act swiftly to prove their integrity. “If the Central government doesn’t investigate, people will assume the BJP is colluding with Congress to protect mutual interests,” he warned.

He also criticised the Central government for failing to act on prime minister Modi’s allegations of ‘RR tax’ collection in Telangana during election campaigns, questioning why no action has been taken.

Broader implications

KTR warned that failure to address the scam would embolden the Congress government to continue its ‘looting spree,’ further eroding public trust. He called on the people of Telangana to stand against the betrayal, promising that the BRS would fight until the guilty were punished.