Hyderabad: Former Minister Harish Rao has written to the Securities and Exchange Board of India (SEBI), demanding an immediate probe into what he termed serious financial and regulatory violations by the Telangana State Industrial Infrastructure Corporation (TGIIC) and the Telangana government.
In the letter addressed to the SEBI Chairman, Rao objected to the mortgaging of 400 acres of land in Kancha-Gachibowli, which had been flagged by a Supreme Court-appointed committee as “forest-like” and ecologically sensitive. He alleged that the land was used to raise substantial sums via Non-Convertible Debentures (NCDs) without disclosing its environmental and legal status to investors.
Calling the move a betrayal of public trust and an abuse of environmental resources, Rao said the transactions likely violate several SEBI regulations, including those concerning unfair trade practices, NCD issuance, disclosure obligations, and merchant banker conduct.
He also questioned the financial capacity of TGIIC, stating that its annual turnover is reportedly under ₹150 crore, while it is raising thousands of crores through NCDs. Rao warned that this raises concerns about repayment and compliance.
Rao further highlighted TGIIC’s recent shift from a private limited to a public limited company and alleged that the conversion may not have followed due regulatory process. He said over ₹169 crore plus GST was paid to merchant bankers to structure the transactions, despite the contentious status of the land.
The letter included supporting documents such as Assembly records, court case references, and government orders. Rao urged SEBI to act immediately, warning that inaction could normalize misuse of public resources.
వాస్తవాలు దాచి పెట్టి, నిబంధనలను ఉల్లంఘిస్తూ కంచె గచ్చిబౌలి భూములను తాకట్టు పెట్టి రుణాలు సమీకరించడం సెబీ నిబంధనలకు విరుద్ధమంటూ సెబీ (SEBI) చైర్మన్కు ఫిర్యాదు చేసిన మాజీ మంత్రి @BRSHarish గారు.
పూర్తి వివరాలు, ఆధారాలతో సెబికి లేఖ రాసిన మాజీ మంత్రి హరీశ్ రావు
కంచె… pic.twitter.com/susXqBZTou
— Office of Harish Rao (@HarishRaoOffice) June 26, 2025
