Bharat Rashtra Samithi (BRS) working president and MLA, K.T. Rama Rao on Wednesday alleged that the Telangana government was carrying out a ₹1.5 lakh crore financial scam in the name of the Musi Riverfront development project.
Speaking in the Assembly during Question Hour, he said the BRS was not opposed to the rejuvenation of the Musi River, but was strongly opposed to what he alleged was 'massive loot'.
Rama Rao wanted to know from the government if the Detailed Project Report (DPR) was prepared. He said if the DPR was ready, the government should make it public.
The House witnessed exchange of words between the ruling party and the main Opposition over the project.
Deputy Chief Minister, Mallu Bhatti Vikramarka, and minister for legislative affairs, D. Sridhar Babu, dismissed the allegations levelled by Rama Rao.
Sridhar Babu revealed that the DPR for the first phase of the project has been completed and the estimated cost of the first phase is Rs.6,500 crore to Rs.7,000 crore.
He also stated that the project may affect 1,435 structures and a final enumeration is currently on.
The minister also stated that those who are in the buffer zone will be given Transferable Development Rights (TDR). He said land acquisition, relief and rehabilitation will be done as per the 2013 Act.
Protesting against what he called the lack of transparency and the government’s approach on the issue, Rama Rao announced a walkout from the Assembly.
Earlier, Rama Rao and other BRS MLAs questioned the government on several critical aspects related to the Musi project. Key concerns raised included the alleged absence of DPR, large-scale demolition of houses, land acquisition, escalation of project costs, and contradictory statements made by the government at different forums.
Rama Rao demanded that the government explain the rationale behind inflating a project originally estimated at ₹16,000 crore to an alleged ₹1.5 lakh crore. He claimed that the Chief Minister cites ₹1.5 lakh crore in public statements, while figures of only ₹4,000–₹5,000 crore are being given in the Assembly.
He further demanded clarity on the number of phases in which the project will be executed, the extent of land acquisition involved, and the number of houses proposed to be demolished.
Referring to official Gazette notifications, Rama Rao pointed out that over 10,000 houses are likely to be demolished and more than 3,260 acres of land will be acquired. He also questioned the expansion of the buffer zone, stating that local RDOs claim it has been increased, but the government has failed to specify the extent and the criteria used for such expansion.
Rama Rao criticised the government for its lack of transparency, claiming that there is no clear answer on whether a DPR even exists.
He alleged that even the Managing Director of the Musi River Development Corporation reportedly stated that no DPR is available. He further alleged that the government has failed to provide accurate details regarding the number of houses to be demolished.
He stated that BRS had demanded that the government conduct public presentations among affected communities rather than organising presentations in five-star hotels. It is for this reason that the BRS chose not to attend the government’s PowerPoint presentation.
Rama Rao accused the government of having originally turned the Musi River into a polluted drain and alleged that it is now attempting to exploit the situation for large-scale corruption under the guise of redevelopment. He demanded that if a DPR exists, it should be immediately tabled in the Assembly.
Highlighting inconsistencies, Rama Rao pointed out that while the government claimed a 50-metre buffer zone, notices were issued to residents in areas like Hanuman Nagar located nearly 5 kilometres away. He questioned how the initial claim of demolishing 1,400 houses escalated to issuing notices to over 10,000 households.
Rama Rao asserted that the government lacks both financial resources and a clear plan, and stated that no loan has been sanctioned by the Asian Development Bank for the project.
Rama Rao alleged that the DPR preparation has been assigned to a company named Main Heart, which, according to him, has been banned by several organisations in Singapore, Pakistan, and India.
He questioned how a DPR that was earlier said to require at least 18 months to prepare was allegedly completed within just two months, and demanded that such a document be made public.