Vigilance Report Suggests Action Against Dwarampudi, Officials in TDR Bond Case
Complaints over the illegal issue of TDR bonds had been made to the Vigilance and Enforcement department in 2023–24, following which an inquiry had been initiated.
Kakinada:The Vigilance and Enforcement department’s report has recommended that the state government take action against former MLA Dwarampudi Chandrasekhara Reddy of the YSRC and four officials of the Kakinada Municipal Corporation (KMC) over alleged irregularities in the issuance of Transferable Development Rights (TDR) bonds for 9.33 acres of land in the city.
Officials named in the report are Mangalagiri Town and Country Planning director R.J. Vidyullatha, Municipal Administration regional director-cum-appellate commissioner Ch. Naga Narasimha Rao, Greater Visakhapatnam Municipal Corporation Town Planning deputy city planner K. Haridas, and then Kakinada Municipal Corporation assistant city planner K.V. Naga Sastrulu, who has retired.
The Vigilance inquiry found irregularities in the issuance of TDR bonds at a 1:400 ratio based on the government value. During the YSRC regime, KMC issued TDR bonds for acquiring private land for handing it over to APEPDCL for construction of a 132/33 KV EHV substation and for setting up facilities for solid and liquid waste management in Kakinada city.
The inquiry found that KMC acquired 4.66 acres from private individuals and issued TDR bonds for the land. It recommended criminal action against Dwarampudi Chandrasekhara Reddy as per law and disciplinary action against the KMC officials for dereliction of duty.
Complaints over the illegal issue of TDR bonds had been made to the Vigilance and Enforcement department in 2023–24, following which an inquiry had been initiated.
In the case of 4.66 acres of private land proposed for APEPDCL, the inquiry found that the file had been processed under two numbers — RoC No. 6801/2023-G1 and RoC No. 7599/2023-G1 — although one file should have one number. Verification of the registers showed that the two file numbers are not related to procurement of land through TDR, the inquiry said. It described the use of false and fabricated numbers as improper.
The inquiry noted that the APEPDCL Kakinada executive engineer had initially requested the Kakinada Port authorities to allot land for the electrical substation. The Port authorities informed APEPDCL that the land could be allotted on lease, subject to payment of lease charges.
The Vigilance inquiry observed that although land had been available on lease from the Port authorities, KMC procured land through TDR and issued an ante-dated public notification, allegedly to favour landowners.
The inquiry further stated that the land procured through TDR and handed over to APEPDCL had been at a lower level than the adjoining road. It noted that no construction activity has begun on the land even though it had been procured around one-and-a-half years earlier. The inquiry observed that taking the land on lease from Kakinada Port could have saved the government hundreds of crores of rupees.
The inquiry termed as unsubstantiated the allegation that KMC issued bonds worth ₹1 lakh per square yard for non-layout land valued at less than ₹15,000 per square yard.
The inquiry concluded that KMC officials had allegedly colluded with landowners and issued TDR certificates in their favour without inviting an expression of interest (EoI) through a public notification. It alleged that government permission had been obtained using fake and fabricated public notifications under the influence of former MLA Dwarampudi Chandrasekhara Reddy.
