Hyderabad: Senior BRS leader T. Harish Rao alleged a HAM roads scam involving ₹18,000 crore and accused the state government of inflating tenders and diverting funds.
He spoke at the Assembly media point on Tuesday and flagged large-scale irregularities in Hybrid Annuity Model road projects. He made the remarks along with former minister Vemula Prashanth Reddy.
Harish Rao said the Roads and Buildings and Panchayat Raj departments sanctioned mobilisation advances worth ₹18,000 crore. He alleged that nearly ₹1,800 crore from this amount funded elections in four other states.
Moreover, he said the HAM roads scam exposed systemic manipulation in tendering and raised serious concerns over financial governance.
HAM roads scam allegations focus on tender deviations
Harish Rao said authorities finalised tenders at 15% to 20% above estimated costs. In contrast, he said national trends show bids coming 20% to 30% below estimates.
He described this gap as a “50% deviation” and said it reflected inflated pricing. He alleged that officials bypassed standard tender norms during the process.
He also claimed that authorities skipped Committee of Tenders approvals. In addition, he alleged bidder collusion that pushed quoted prices higher.
Furthermore, he said the HAM roads scam revealed irregular practices that benefited select contractors.
HAM roads scam linked to policy changes in bidding norms
Harish Rao said the government removed the 5% cap on premium bids, allowing unrestricted quotes above estimated costs. He alleged that officials introduced this change specifically for HAM projects.
“Until now, there was a ceiling limiting tender bids to a maximum of 5 percent above the estimated price; however, with this ceiling lifted for HAM projects, bids can now be submitted at any premium,” he said.
He further alleged that authorities pre-allocated works, indicating a commission-driven system. He said such practices weakened transparency in public projects.
In addition, Harish Rao said the HAM roads scam required scrutiny due to its scale and implications. He maintained that inflated tenders and fund diversion compromised public resources.
The allegations added to political criticism of the government over infrastructure spending and procurement practices.