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YSR, aide under scam cloud

india Updated: Aug 16, 2010 01:46 IST
HT Correspondent

Andhra Pradesh Chief Minister K Rosaiah might seek a CBI probe into a questionable land deal in 2004 between a public sector undertaking and Dubai-based construction giant Emaar Properties that allegedly caused the state a loss of Rs 1,000 crore.

The deal has put the role of the then state chief minister Y S Rajasekhar Reddy, his close aide Ambati Rambabu, two serving ministers and the state's principal secretary under the scanner.

Details of the alleged scam were provided to the media on Saturday by the chairman of the Andhra Pradesh Industrial Infrastructure Corporation (APIIC), S S Subhramanyam.

"Prima facie the loss for us is in the region of Rs 1,000 crore but it could be more as we are yet to scrutinise all the documents relating to the deal. We have slapped a legal notice on Emaar," Subhramanyam told Hindustan Times on Sunday.

Others involved in the alleged scam are serving ministers Botsa Satyanarayana and J Geeta Reddy and the state's Principal Secretary B P Acharya, who was managing director of APIIC when the deal was struck. Ramababu was then chairman of APIIC.

"We have formed a three-member committee to dig into the files and find out how and where the state interests were compromised. The report will be ready in two weeks' time and submitted to the chief minister," Subhramanyam said.

Rambabu described the move as "part a witch-hunt of YSR followers" on the eve of a proposed campaign by his son Jagan Mohan Reddy in Nellore district from September 2.

Acharya denied having given any undue benefit to the Dubai-based company.

"I have no intention to defend any irregularities if committed by Emaar-MGF," he said in a statement.

Rosaiah was not available for comment but sources close to him said he would take a decision on handing the case over to the CBI or order a judicial probe after going through the APIIC report.