KTR accuses Revanth of pumping public funds into benami company

BRS working president KTR alleged that the KLSR Company belonged to Chief Minister A Revanth Reddy and he was misusing thousands of crores of public money and diverting it to his benami company.

The BRS leader recalled that the Supreme Court issued notices to the government seeking clarification on large-scale financial transactions continuing in the company despite its insolvency proceedings as well as allegations relating to attempts to influence judicial processes. Addressing the media here on Wednesday, KTR said that the company KLSR functions as a front entity for the Chief Minister and presented documentary evidence to support his claims.

KTR asserted that KLSR had been operating as a benami company for Revanth Reddy from the very beginning and that the links between the Chief Minister and the firm were well-known.

Fearing that his benami operations would be exposed, Revanth Reddy orchestrated what he termed a political drama from Davos under the guise of forming a Special Investigation Team (SIT) in order to divert public attention.

KTR demanded immediate investigation into the company and all operations of the insolvent firm should be halted until the probe is completed. He further called for the company to be blacklisted and for all contracts allegedly secured without eligibility to be cancelled.

KTR recalled that enforcement agencies had carried out raids on KLSR in 2018 and there was alleged links between the company and Revanth Reddy, who was then the PCC president. Despite the firm subsequently entering insolvency proceedings at the National Company Law Tribunal (NCLT), KTR alleged that the Chief Minister, after assuming office, facilitated the award of major government contracts to the company. He said that Income-Tax raids were conducted on relatives of Revanth Reddy on September 27, 2018, during which transactions between Sai Mourya Estates and KLSR were unearthed.

Funds from Bhopal Infra and Sai Mourya were traced to accounts linked to relatives of the Chief Minister, said KTR.

KTR said that in July 2023, disputes between KLSR and another company led both parties to approach the National Company Law Tribunal. Subsequently, KLSR filed a Corporate Insolvency Resolution Petition, after which financial transactions were restricted.

He alleged that attempts were later made to exert pressure on an NCLT judge through a senior judicial intermediary, prompting the judge to recuse himself from the case after disclosing the matter.

He claimed that Revanth Reddy was the key figure working behind the scenes to secure favourable rulings for the company, citing the firm’s alleged financial dealings with Sai Mourya, a company linked to the Chief Minister’s brother-in-law.

The BRS leader alleged that despite its insolvency, KLSR secured government projects worth nearly Rs 6,000 crore under the present administration, including works related to AMRUT Scheme, Jal Jeevan Mission, Young India Residential Schools, Telangana irrigation projects, Road development projects.

He demanded that the Chief Minister explain how such a financially distressed company was awarded contracts of this magnitude, particularly in the Municipal Administration Department and in the Chief Minister’s own constituency.