"Shocking": BRS questions Telangana Govt awarding ₹2,500 cr contracts to KLSR Infratech amid bankruptcy probe

Hyderabad (Telangana) [India], February 4 (ANI): Bharat Rashtra Samithi (BRS) spokesperson Manne Krishank on Wednesday alleged that KLSR Infratech, a company facing bankruptcy, was awarded ₹2,500 crore contracts in Telangana despite being under investigation.
The company was previously raided by the Enforcement Directorate (ED) in 2018 and labelled a shell company.
Speaking with ANI, Krishank claimed that NCLAT member Justice Sharad Kumar recused himself from a case involving KLSR Infratech, citing pressure from a senior judge to favour the company.
"KLSR Infratech company in 2018 was named as a shell company by the ED when they raided the company... Last year, NCLAT member Justice Sharad Kumar gave a sensational statement that he was recusing from hearing a case because he was pressured by a senior-most judge to give a favourable order to the company KLSR Infratech...," he said.
Calling the situation "shocking," the BRS spokesperson said that even as the company has been facing bankruptcy and insolvency proceedings for the last two-and-a-half years, the Revanth Reddy-led government awarded it contracts worth about ₹2,500 crore.
"The shocking thing is, while this company has been facing a bankruptcy case for the last two and a half years, the same company has been given Rs 2,500 crore contracts in Telangana state just in the last year," he added.
"The ED had identified KLSR Infratech as a benami company of Revanth. This same company gifted a Toyota Land Cruiser to Revanth Reddy, which he used during his tenure as Telangana Congress president," he alleged.
"These include the Kodangal college project in the Chief Minister's own constituency, drinking water works, irrigation projects, Young India Schools and major road projects," Krishank alleged.
The Supreme Court has ordered a CBI, ED, and SFIO investigation into the matter, prompting BRS Working President KT Rama Rao (KTR) to demand cancellation of the contracts and a probe into the Chief Minister's relationship with KLSR Infratech.
KTR alleges that the company is a benami firm of Chief Minister Revanth Reddy, citing suspicious transactions and attempts to influence judicial proceedings.
"As the Supreme Court has ordered CBI, ED, and SFIO to investigate this matter..., KTRG has demanded that these contracts should immediately be rejected; they should investigate the relationship between the Chief Minister and KLSR Infratech...," added BRS spokesperson.
"These works must be stopped and cancelled at once. Central agencies must investigate the benami angle between CM Revanth and KLSR Infratech as per the Supreme Court's instructions," he added.
The remarks come amid sustained attacks by BRS on the Congress government over alleged financial irregularities involving KLSR Infratech. Earlier today, KTR accused the Chief Minister of misusing public money and diverting thousands of crores to what he described as his benami company.
He claimed that despite insolvency proceedings before the National Company Law Tribunal, KLSR continued to receive large government contracts under the present administration.
KTR has alleged that enforcement agencies raided KLSR in 2018 and that Income-Tax searches of Revanth Reddy's relatives uncovered financial links between firms such as Sai Mourya Estates and KLSR.
He also cited disputes before the NCLT and claims of attempts to influence judicial processes, which later reached the Supreme Court.
The BRS leadership has demanded that all contracts awarded to KLSR be cancelled, that the company be blacklisted from future tenders, and that a CBI-led probe be conducted, along with investigations by the ED and SFIO. The party has also sought suspension of ongoing works until the inquiry is completed. (ANI)