Hyderabad construction firm alleges Revanth Reddy demanding commission for projects
A leading Hyderabad-based construction company, RVM Constructions India Limited, has levelled serious allegations against Telangana Chief Minister A Revanth Reddy over irregularities in the evaluation of tenders floated by Hyderabad Growth Corridor Limited (HGCL) for the construction of Radial Road-2 in the State Capital.
The company alleged that Revanth Reddy demanded a 15 per cent commission from contractors to award projects. In a letter to the president and members of the Builders Association of India (BAI), Nama Ramesh, Managing Director of RVM Constructions India Limited, flagged alleged irregularities in the tendering process and sought the association’s intervention.
“It is widely reported that Chief Minister A Revanth Reddy has demanded a commission of 15 per cent for awarding these projects to contractors. It is an open secret, yet no MLA or Minister is speaking about it. It is further alleged that bill payments are being released only to those contractors who pay commissions,” Ramesh alleged.
Pointing out that nearly `20,000 crore was due to contractors in Telangana against certified bills, some of which had remained unpaid for the past three years, he alleged that substantial commissions were reportedly being demanded for the release of payments.
“Many contractors are suffering because of these delays; some have lost their lives, and many others have lost hope despite repeated requests for payment. If this continues, there will hardly be any contractors left in Telangana,” he stated in a letter to BAI. Nama Ramesh sought BAI’s intervention and urged the association to take up the issue with the state government.
Meanwhile, the controversy over alleged irregularities in the Radial Road-2 tenders surfaced after Sushee Infra, a company linked to Congress MLA Komatireddy Rajagopal Reddy’s family, approached the High Court, challenging HGCL’s decision to disqualify it during the technical evaluation without citing adequate reasons. HGCL invited tenders for the construction of Radial Road-2, an 81-km road connecting the Outer Ring Road (ORR) at Budwel with NH-167N at Nacharam near Kodangal.
The project has been divided into three packages, with an estimated cost of `3,295 crore. In his letter to BAI, Nama Ramesh said leading companies, including NCC, BVSR, and GKC, participated in the tendering process along with Sushee Infra. “From the manner in which the evaluation was conducted, it appears that Sushee Infra was deliberately targeted,” he alleged.
Ramesh further alleged that the Chief Minister’s Office had threatened contractors and discouraged them from participating in the bidding process for Radial Road-2.
“Over the last five to six years, I have observed that at least 10-12 companies typically participate in EPC or HAM projects tendered by the Ministry of Road Transport and Highways (MoRTH), the National Highways Authority of India (NHAI) and state governments. In these tenders, however, only four bidders participated, and the remaining bidders are understood to be companies pre-arranged with the Chief Minister. It is learnt that other contractors who intended to bid received threatening phone calls from the Chief Minister’s Office. Sushee Infra was the only company that ventured to participate,” he said.
Ramesh also said that Sushee Infra had alleged that, during the bidding process, it received calls from HGCL officials and others asking it not to participate in the tender. The company was allegedly warned that it would otherwise be disqualified without any valid reason.
“As is widely known, there is a political rift between Rajagopal Reddy and Revanth Reddy. Since Sushee Infra belongs to Rajagopal Reddy’s family, the Chief Minister allegedly influenced HGCL to disqualify the company. To date, HGCL has not disclosed the L1 bidder’s financial bid. Sushee Infra has stated that the current L1 bidders have quoted approximately 3 to 15 per cent above the estimated cost. This shows a clear lack of transparency in the process and raises serious concerns that the award is being finalised under political influence,” Ramesh alleged.
He further stated that Sushee Infra had submitted bids for all three packages and claimed that its quoted prices were significantly lower than those of the current L1 bidders. According to the company, the total difference amounted to approximately `600 crore compared with the tendered value, he added. Ramesh said the potential savings would have benefited Telangana residents and the state’s development.
