A scam unearthed in the Housing department about 10-11 years ago is yet to find its closure in terms of action taken against the errant.
According to information shared by the Forum for Good Governance (FGG), four sites at various locations in the city were identified and given to four private developers for development under a joint-venture with the then Andhra Pradesh Housing Board.
Agreements were accordingly signed for 65 acres at Kukatpally (given to one CHIDCO Private Limited), 9.04 acre at Kukatpally (given to Madhucon Projects Private Limited), 4.575 acres at Gachibowli (given to Vasanta Projects Private Limited) and 19.95 acres at Gachibowli (given to Universal Realtors Private Limited).
The current market value of the total 98.565 acres would be over ₹5,000 crore, a statement from the FGG said.
The four companies, despite taking possession of the land in 2004, did not fulfil the obligations as per the agreement. Following several adverse media reports about the same, the Vigilance and Enforcement department, in 2012, alerted the government about serious breach of conditions mentioned in the agreements. The government, in turn, instituted an inquiry by the Director General, Vigilance and Enforcement, who submitted a report in 2013.
As per the report, in the case of 65-acres site, the private developer failed in contributing equity in the special purpose vehicle as agreed upon, which was condoned by the Housing Board officials. In other instances too, the vigilance report indicted the developers and recommended criminal action against them under the relevant sections, besides suggesting that the issue be referred to either the CID or the CBI as it involved conspiracy with the aid of officials.
President of the FGG M. Padmanabha Reddy alleged that the developers built villa residences and sold them at a high prices, ignoring the condition stipulated for constructing dwellings for the city’s poor in part of the land given.
Subsequent to the vigilance report, two letters were addressed, in December 2013 and again in May 2014, from the Principal Secretary/Secretary, Housing, to the Vice-Chairman and Housing Commissioner, the APHB, to take necessary action based on the recommendations of the vigilance inquiry reports.
The FGG alleged that after formation of Telangana, the matter was kept in cold storage with no action taken against those involved. A recent request by the FGG, under the Right to Information Act, about the action taken following the vigilance report got a reply from the Transport, Roads and Buildings department (with which the Housing department was subsequently merged) that the information sought could not be provided as the matter was still under investigation.
Secretary of the FGG has addressed a request to the Governor to take notice of the issue and direct the Chief Secretary for necessary action.
