Days after Amaravati bonds were listed on the Bombay Stock Exchange for Rs 2,000 crore, former Rajamundry MP and prominent political critic Undavalli Arun Kumar lashed out at Andhra CM Chandrababu Naidu for ruining the state’s economy and pushing the people into debt trap.
Speaking with media in Rajahmundry, Undavalli said with CRDA (Capital Region Development Authority) itself claiming that Amaravati will be built by 2050, how will the government assure high interest rates for every three months at the cost of people’s money?
While alleging that Chandrababu’s government is putting burden on all the people of the state, he asked, "Will government bear or pay the amount if Rajamundry issues Rs 100 crore bonds? No. Then how can he squeeze money and charge taxes on someone from backward Srikakulam and Anantapuram, Kurnool, though the bonds are issued on behalf of CRDA?”
He alleged, "How fair it is to pay 10.32% fixed interest rate for the people who took bonds while all national banks (private and public) are not giving beyond 7.25% and brokers were given as much as Rs 17 crore (0.8%)."
Undavalli also accused the government of keeping unnecessary debt burden on the people even though it is the central government which has to construct the capital of Andhra Pradesh. He alleged, "After four years, BJP and TDP are pointing fingers at each other. While one (former) asks for accounts on the funds which were released till now so that they can give more, another (TDP) claims that they have already sent, we (people) don't know whom to ask."
Asking Chandrababu to be transparent, he asked him to reveal how the state debt has gone up to Rs 2,25,234 crore.
The former Rajahmundry MP’s attack on Chandrababu didn't go down well with TDP cadres, as its official spokesperson Lanka Dinakar called his comments baseless.
Lanka said "Undavalli is Usaravelli (Chameleon). He doesn't have any knowledge about financial affairs. He changes his words whenever it suits him."
He said, "Issuing of bonds for development projects is not a prohibited act and there is no ambiguity on interest rate. All the statutory norms along with RBI and SEBI guidelines were applied and these allegations are baseless and anti-development."
When asked about "increased state debt" as alleged by Undavalli, Dinakar challenged him to come for an open debate and said, "The debt was given as per the proportion of the population, 58.42% of residual Andhra Pradesh."
Lanka mocked Undavalli by saying that he doesn't have any knowledge about AP Re-organisation Act 2014 and is confused