Pepper Spray Attack: Was it LANCO troubling MP Rajagopal more than TELANGANA?

Pepper Spray Attack: Was it LANCO troubling MP Rajagopal more than TELANGANA?

February 13 can be marked as a ‘Black Day’ in the history of Indian parliament, for all the noticeable reasons. It saw bedlam riding on a horse named ‘anarchy’, ruling the roost within the well of the Lok Sabha.

Although, our temple of democracy has witnessed abundant times our Members of Parliament going bananas and crackers and nuts combined, plumbing to new lows, hitting each other with chair and mikes in the past as well – this one stands out as the ace in a pack of cards.

We saw expelled Congress MP from Seemandhra and former Lanco group chief L Rajagopal pulling out a yellow colored bottle, filled with pepper, from his pocket and spraying it in the house, leading everyone to cough and run out of the house with watery eyes – all were targeted, be it the honorable Speaker, secularists, pseudo-secularists, leftists, rightists and centrists of course.

Seeing our honorable MPs stumbling down in the run for life wasn’t a good sight to have witnessed, although, it proves yet again- even the mightiest can fall if hit in the right place.

Rajagopal and his fellow agitators had accomplished what they set out for – making their noise heard and resistance against formation of Telangana being acknowledged – and it made the ‘infallibles’ fall and cry too. Thanks Rajagopal for letting us know that no one is safe in the country, even our all authoritative MPs.

But, did the ‘pepper spray attack’ solely result as disapproval towards bifurcation of Andhra Pradesh? Was love for the land of birth driving Rajagopal towards this violent act – for which he had to hear rebukes from fire spitting journo Arnab Goswami on his show?

Indubitably, former Lanco head didn’t want Telangana to be formed. But, more than TELANGANA was it LANCO troubling MP Rajagopal?

Ultimately, it were his business interests which were prompting him to stoop down to any level possible to save Hyderabad from leaving Andhra, going by what John Elliot pens down in his latest book “ Implosion: India’s tryst with reality” in the chapter named 'Scam Andhra'.

And, Elliot’s words seem to be holding some weight considering the fact Rajagopal’s Lanco infrastructure, power and construction group is not earning enough profits of late. Lanco power the largest power producing private firm in the country, is highly indebted now.

The chapter adds that after Telangana being formed (which is a reality now) and Hyderabad being parted with, the company loses in a big way, since it holds large investments in and around the city.

This is nasty for Rajagopal. If Elliot’s words are as truthful as the Holy Bible then former Congress MP has a tough time ahead of him.

Stressed balance sheet of Lanco says the story

Lanco Infratech reported a net loss of Rs 529.68 crore for the quarter which ended December in 2013.With a net loss of Rs 465 crore during the same period a year ago, fiscal situation of the Lanco Infratech has only gone from bad to worse. Every bit of the information is available in company’s quarterly filing with Bombay Stock Exchange (BSE).

Power business, which contributed substantially to its kitty, is suffering the most. Income arising out of the power business during the October-December quarter was down by about 32 per cent to Rs 1,735 crore. Power business added Rs 2,533 crore in revenues during the same quarter in 2012.

In the month of December last year the company got a nod from the side of lenders to restructure over Rs 7,000 crore of debt through Corporate Debt Restructuring (CDR) mechanism. Therefore, worsening debt situation is only killing the future prospects for Lanco.

During the reign of YSR Reddy in Andhra some companies including Lanco made progress at quick pace. There were hushed accusations of Rajagopal’s Lanco earning an assortment of contracts through the way of hush money.

With business interests as widespread as Lanco’s and considerable amount of company’s investment put in the Hyderabad region, formation of Telangana can prove completely damaging to the company especially when , its health is not keeping too well. And, Telangana is a reality now.

Those who asked what prompted Rajagopal to resort to anarchist ways of the highest level, answer lies in Hyderabad parting away from Andhra Pradesh. Right….Mr. Rajagopal?

The opinions expressed in this article are those of the author and do not necessarily reflect the views of our organisation.