Hyderabad: Senior Congress leader and former minister Nagam Janardhan Reddy submitted to the High Court at Hyderabad that there was a loss to the tune of Rs 5,585 crore to the government exchequer due to the collusion between the government entity Bharat Heavy Electricals Limited and two private companies - Megha Engineering and Infrastructure Limited and Navayuga Limited.
Nagam Janardhan Reddy accuses infra companies of causing loss to govt
The former legislator, party in person, was placing arguments before the Division Bench comprising Chief Justice and Justice V Ramasubramanian on Tuesday in favour of his Public Interest Litigation plea filed against alleged malpractices in sale of mechanical EM equipment for Palamuru Ranga Reddy Lift Irrigation Scheme. Reddy further submitted that in the Package - 5 of the contract of sale, Megha Engineering and Infrastructure Limited squandered money to the tune of Rs 1,632 crore.
Reddy prayed the HC to peruse all requisite documents and pronounce an order declaring the action of the Irrigation Department in awarding the aforementioned contracts as illegal, unreasonable, arbitrary and capricious. He also submitted that the government was keeping mum on these irregularities and it would be made liable for its conspicuous silence both in the judicial court and in the public court.
Justice V Ramasubramanian informed Reddy that cost escalation did not fall under the jurisdiction of courts and as it was more of an executive exercise and the court’s authority was circumscribed in deciding on his PIL. The court reserved its orders to a further date.