‘Will resign if allegations against Amaravati bonds are proven’: AP official lashes out

AP Planning Board Vice-Chairman C Kutumba Rao hit back at Undavalli Arun Kumar for saying the bonds were running the state’s economy.
‘Will resign if allegations against Amaravati bonds are proven’: AP official lashes out
‘Will resign if allegations against Amaravati bonds are proven’: AP official lashes out
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Andhra Pradesh Planning Board Vice-Chairman C Kutumba Rao on Saturday lashed out at leaders from the Opposition parties for making “wild allegations” against the state. This comes just days after former MP from Rajamundry Undavalli Arun Kumar claimed the bond would push the state into poverty and BJP’s GVL Narasimha Kumar’s allegations over lapses on the part of the state while opening Personal Deposit Accounts.

Earlier this month, the Amaravati bonds were listed on the Bombay Stock Exchange for Rs 2,000 crore, and former Rajamundry MP and prominent political critic Undavalli Arun Kumar hit out at Andhra CM Chandrababu Naidu for allegedly ruining the state’s economy and pushing the people into a debt trap.

Speaking to reporters in Rajahmundry, Undavalli had asked that with the CRDA (Capital Region Development Authority) itself claiming that Amaravati would be built only by 2050, how can the government assure of high interest rates, every three months, at the cost of people’s money?

To this, Kutumba Rao said that bonds were issued in a transparent manner and added that he would resign in 24 hours if Undavalli could prove any of his allegations. 

Kutumba Rao also lashed out at BJP MP GVL Narasimha Rao for his ‘baseless’ allegations, and said that lying had become common practice to the latter.

Last month, GVL had alleged widespread corruption and lapses in the opening of separate Personal Deposit (PD) accounts of government officials in Andhra.

The BJP has been demanding a CBI probe against the TDP-led government in Andhra Pradesh alleging that it has credited Rs 53,039 crore in the personal deposit (PD) accounts of officials of various departments in the state, adding that no records were maintained and no bills were produced to the Comptroller and Auditor General of India (CAG). 

However, the AP Planning Board Vice-Chairman said, “We don’t know how he is making such claims. If they really have evidence, we are asking him to provide the same. If he doesn’t provide it in a week, even though he is a sitting Rajya Sabha member, we will issue a notice for defaming the state’s brand image by making such allegations.”

“We will definitely send the notice. He can consider it a warning. He can’t make such claims and keep running back to New Delhi. Has the BJP hired him only for this? We are taking this seriously and will apply the same standards to all parties,” he added.

Bonds for development of new Andhra Pradesh capital Amaravati were listed on Bombay Stock Exchange (BSE) last month.

'Amaravati Bonds 2018' worth Rs 2,000 crore were issued by APCRDA. The issue received an oversubscription by 1.53 times.

The 10-year issue is offered at a fixed interest rate of 10.32% per annum, paid quarterly, with a 5-year moratorium on principal payment, which is redeemed on yearly basis for next five years at 20% every year. The issue is guaranteed by the Government of Andhra Pradesh and is rated by CRISIL, Brickwork and Auicte.

IANS inputs

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