Hyderabad: It has also been alleged that the IAS officials in the case directed the APIIC not to subscribe to a rights issue, thereby reducing the government’s stake in the joint venture company from 11 per cent to 0.055 per cent, causing a loss of more than Rs 500 crore to the exchequer.
The investigating official in the final report had stated: “The APIIC, instead of paying Rs 2.09 crore by way of cash in the year 2012 towards the additional share capital, could have insisted on adjusting the amount against the consideration calculated for 109.36 acres transferred to the JV company at the time of rights issue (2006) like the Rs 11.00 lakh initial capital adjusted earlier so that the 11 per cent stake in enhanced capital could have been re-tained in 2006 itself.”
The petitioner said that this showed that there was something wrong. “In the final report the investing officer holds the accused, IAS L.V. Subramanyam, responsible for acts of omission leading to dilution of the government stake in the company from 11 per cent to 0.55 per cent,” he said.
