Hyderabad: PM Unity Mall tender proceedings in Hyderabad face allegations of serious financial irregularities, with BRS working president K. T. Rama Rao seeking their cancellation and an independent probe.
In a letter to Union Finance Minister Nirmala Sitharaman, Rama Rao urged the Centre to stop further release of funds for the project. He also sought intervention before authorities take any irreversible decisions.
The BRS leader alleged that the Congress government in Telangana had framed questionable tender conditions. According to him, the terms could give disproportionate benefits to a private developer while putting public resources at risk.
Rama Rao said the proposed project had an estimated cost of about ₹2,059.81 crore, excluding the land value. He added that the project had received around ₹202 crore in Central assistance.
The proposed mall would come up on about 6.30 acres of prime land at Raidurg. The project would have around 27 lakh square feet of built-up space, he said.
Rama Rao’s main concern centred on the distribution of commercial space. He said the government’s minimum share stood at around nine lakh square feet, while the private developer would receive at least 18 lakh square feet.
He questioned why a private developer should receive at least twice the government’s minimum built-up area in a project involving valuable public land and substantial Central assistance.
PM Unity Mall tender raises questions over project’s financial model
Rama Rao demanded that the Congress government explain the extensive commercial rights proposed for the private developer. He also questioned whether Telangana would receive adequate value for the public resources committed to the project.
The BRS working president raised further concerns about the project’s financial structure. He pointed to the ₹200 crore interest-free loan sanctioned under the Special Assistance to States for Capital Investment (SASCI) scheme.
Under the proposed arrangement, the loan would pass through the Telangana Trade Promotion Corporation Limited (TGTPC) to the selected developer on a back-to-back basis.
Rama Rao also alleged that the tender framework allows authorities to adjust expenditure already incurred on project preparation, consultancy, surveys, approvals and site preparation from the funds.
He said the proposed arrangement required independent scrutiny before the government released any further public money.
Rama Rao demanded cancellation of the PM Unity Mall tender and an independent investigation into the entire transaction.