JS Leader Warns of VMRDA's Collapse Amid Allegations of Massive Corruption

Visakhapatnam:The Visakhapatnam Metropolitan Region Development Authority is in the grip of a severe financial crisis amid allegations of corruption and irregularities taking place under Commissioner Tej Bharat.

Jana Sena leader and former corporator Peethala Murthy Yadav has accused Bharat of driving the authority to collapse and demanded a government inquiry.

Murthy Yadav argued that VMRDA, once central to Visakhapatnam’s growth, was now at risk of losing its foundations. He contrasted Bharat’s tenure with that of former commissioners Basanth Kumar, Yuvraj, and Viswanathan, who had “generated hundreds of crores in revenue through display of integrity and efficiency.”

Since taking charge, Tej Bharat has overseen the development of multiple apps for VMRDA’s operations, channelling contracts to Amaravati Software Innovation Pvt Ltd. While app development typically costs Rs 2–5 lakh, VMRDA is reportedly spending Rs 2 crore annually.

A “Law App” alone cost Rs 53 lakh, with an agreement to pay Rs 2.50 lakh per month for maintenance over three years, despite the authority already having a legal section and standing counsel.

Routine functions have been outsourced to drone services, with Entro Labs IT Solutions receiving Rs 2.5 crore. The same firm was awarded a Rs 4.5 crore computer procurement contract, though the actual value was closer to Rs 1.5 crore.

Further controversy surrounds the dismantling of the “Sanjeevini” gym, inaugurated for employees by former governor Narasimhan, and its replacement with a new facility for Rs 2 crore, again awarded to Entro Labs.

Murthy Yadav also highlighted the hiring of KPMG personnel for the Visakhapatnam Economic Region office at salaries of Rs 30 lakh per month, despite directives that no dedicated staff was required. Allegations suggest these employees contribute little to operations.

Concerns have escalated over Tej Bharat’s consolidation of financial authority. He has sidelined the finance department and this prompted resignations of senior officials.

Bharat is also accused of directing a Rs 75 crore fixed deposit to Kotak Mahindra Bank in Rajahmundry, outside VMRDA’s jurisdiction.

Murthy Yadav reported that bills totalling Rs 150 crore have been cleared during Tej Bharat’s tenure, while a subordinate, Ramesh, allegedly collects kickbacks from contractors and leaseholders. Observers warn that VMRDA’s 40–50 bank accounts and fixed deposits worth hundreds of crores are vulnerable to misuse.

Yadav stressed that the state government must act swiftly to investigate these allegations and protect VMRDA’s funds, warning that without intervention, the authority's very survival could be at stake.