In a major political escalation in Telangana, former minister and BRS leader T. Harish Rao has leveled serious allegations against the state government, claiming a massive ₹5,000 crore scam involving road construction tenders. Speaking to reporters, the senior BRS leader accused the current administration of financial irregularities in the allocation of projects under the Hybrid Annuity Model (HAM).
Allegations of Inflated Tenders
Harish Rao alleged that the government has deliberately favored specific contractors by awarding tenders at rates significantly higher than the initial estimates. According to the BRS leader, several projects were handed over to firms that quoted prices 25% above the government’s internal estimations. He argued that this discrepancy represents a blatant misuse of public funds and suggests a pre-planned effort to benefit a select group of bidders.
The BRS leader pointed out that the Hybrid Annuity Model—a system where the government pays 40% of the project cost during construction and the remaining 60% as annuity over several years—is being exploited. He suggested that by artificially inflating the base cost, the government is committing the state to long-term financial liabilities that far exceed the actual market value of the infrastructure being built.
“A Premeditated Scandal”
Rao described the situation as a “premeditated scandal,” asserting that the tender process lacked transparency and was designed to bypass competitive honesty. He questioned why the government would accept bids that were significantly higher than their own engineers’ estimates, rather than calling for a re-tender or negotiating down to more reasonable rates.
“The government is handing over public wealth to contractors on a silver platter,” Rao stated during the press interaction. He further challenged the administration to provide a detailed breakdown of the bidding process and explain the logic behind approving such high-cost contracts.
Government Response Awaited
The allegations have sparked a heated debate in Telangana’s political circles, with the BRS demanding a high-level probe into the road development projects. While the state government has yet to release a formal rebuttal to these specific figures, officials have previously defended the HAM model as a necessary tool for rapid infrastructure development amidst budget constraints. However, Harish Rao warned that the BRS would continue to raise the issue both in the public domain and the legislative assembly until a clear explanation is provided regarding the alleged ₹5,000 crore discrepancy.
