Land ceiling allegations over more than 2,200 acres for Ramoji Film City | Undavalli says Polavaram is synonymous with YS Rajasekhara Reddy
The Margadarsi issue has once again triggered political controversy. Former MP Undavalli Arun Kumar made sensational remarks while referring to several issues, including Margadarsi Financiers’ deposits, huge cash transactions, alleged violations of RBI regulations, the Income Tax case, and land-related matters concerning Ramoji Film City.
Undavalli alleged that although there was a rule preventing Margadarsi from accepting cash deposits of more than Rs.20,000, the company had collected Rs.1,156 crore in cash. He said that if normal interest were calculated on that amount, it would come to Rs.2,699 crore. He also clarified that the case against Margadarsi was not quashed and claimed that it was closed only following Ramoji Rao’s death.
Rs.2,699 Crore Income Tax Liability.. Undavalli Launches Attack
Former MP Undavalli Arun Kumar said that he had complained to Income Tax officials about the Margadarsi Financiers issue as early as 2007.
According to him, RBI regulations permitted cash deposits of only up to Rs.20,000, while amounts above that limit had to be accepted through cheques or online transactions.
However, Undavalli alleged that Margadarsi had collected as much as Rs.1,156 crore in cash deposits exceeding Rs.20,000, in violation of these regulations.
Questioning the collection of such a huge amount in cash, Undavalli said that even if normal interest were calculated on the amount, it would work out to around Rs.2,699 crore. He said clarity was still required regarding the tax liability associated with this amount.
Parallel Banking System Without Informing RBI?
Undavalli made a serious allegation that Margadarsi Financiers had allegedly been operating a “parallel banking system” without informing the RBI or obtaining its permission.
He said that after he lodged a complaint over the issue, Income Tax officials issued notices to Ramoji Rao. However, according to Undavalli, Ramoji Rao subsequently approached the High Court and obtained a stay.
Undavalli also remarked that there would generally be no scope for a stay on such a notice except in circumstances involving the possibility of a penalty.
Margadarsi Case Was Not Quashed.. Closed Due to Ramoji Rao’s Death!
Undavalli Arun Kumar rejected claims that the court had quashed the Margadarsi case.
He clarified that the case was not quashed and claimed that it was closed because Ramoji Rao had died.
According to Undavalli, under criminal law, when an accused person dies, criminal proceedings against that individual come to an end automatically. He said that in the Margadarsi matter, the case had been filed only against Ramoji Rao, and since he had died, the court stated that the proceedings could not continue against him.
Undavalli further claimed that the Andhra Pradesh and Telangana governments had refused to undertake prosecution in the matter. As a result, he said, the court observed that there was no need to continue the case.
Undavalli said he was examining what course of action could be pursued further in the matter.
Letter to Income Tax Officials.. Refused to Disclose Details
Undavalli said that he had once again approached Income Tax officials last year regarding the Margadarsi issue.
He said he had written to the Income Tax authorities seeking details about the latest status of the Margadarsi case, but the officials refused to disclose the information.
He said the developments from the time of his 2007 complaint until the present day should be brought into the public domain.
Land Issue Involving More Than 2,200 Acres at Ramoji Film City!
Apart from Margadarsi, Undavalli also made sensational allegations regarding the land associated with Ramoji Film City.
He alleged that more than 2,200 acres of land had been acquired for Ramoji Film City in violation of the land ceiling laws.
He said that in connection with the matter, the Ranga Reddy District Joint Collector had issued notices seeking the surrender of 1,364 acres of land to the government.
According to Undavalli, immediately after receiving the notices, Ramoji Rao approached the court and argued that the land was not agricultural land but consisted of hills and rocky terrain, following which a stay was obtained.
Why Were Applications Filed to Convert Agricultural Land into Non-Agricultural Land?
Undavalli, however, raised another key point that he said contradicted this argument.
He claimed that the Joint Collector had shown him applications received at the Ranga Reddy Collectorate seeking conversion of agricultural land into non-agricultural land from Ramoji Film City.
Undavalli said that it was after these developments that notices were issued seeking surrender of the land to the government.
He also stated that the case relating to the land issue had recently been dismissed by the court.
Polavaram Means YS Rajasekhara Reddy!
Undavalli Arun Kumar also made key remarks regarding the Polavaram project.
“Whenever we hear the word Polavaram, we are reminded of the late leader YS Rajasekhara Reddy,” he said.
He recalled that the necessary clearances from various departments for the Polavaram project were obtained during YSR’s tenure, and that canal construction works had also been taken up during his administration.
He added that welfare schemes such as Aarogyasri also remind people of YS Rajasekhara Reddy.
Quality Must Be Ensured.. Otherwise, a Nepal-Like Disaster Could Occur!
Undavalli warned that maintaining quality standards is extremely important in the ongoing construction of the Polavaram project.
He cautioned that failure to maintain construction quality could lead to a disaster similar to what happened in Nepal.
He said compromising on quality in such a major project could result in a huge cost being paid in the future.
Godavari Water Was Given.. But Not Polavaram Water!
Undavalli also criticised the administration of Chandrababu Naidu over the Polavaram project.
He said Chandrababu had supplied Godavari water to North Andhra, but had not completed the Polavaram project and supplied water from the project.
Undavalli reiterated that the crucial foundation for the Polavaram project was laid during YS Rajasekhara Reddy’s tenure.
From Margadarsi to Polavaram.. Undavalli’s Remarks Trigger Fresh Debate
Undavalli once again brought several issues into the spotlight, including the alleged Rs.1,156 crore cash deposits in Margadarsi, the Rs.2,699 crore calculation, alleged violations of RBI regulations, Income Tax notices, the court stay, the closure of the case following Ramoji Rao’s death, and the alleged refusal of the governments to pursue prosecution.
At the same time, he raised issues concerning more than 2,200 acres of land at Ramoji Film City, including notices seeking the surrender of 1,364 acres, applications seeking conversion of agricultural land into non-agricultural land, and the court stay.
On the Polavaram issue, Undavalli recalled the role played by YS Rajasekhara Reddy and warned that quality standards should not be compromised in the ongoing construction of the project.
Rs.2,699 Crore Issue.. Margadarsi Controversy Back in Focus Following Undavalli’s Remarks
Undavalli Arun Kumar’s remarks have once again brought several questions to the forefront:
Where did the alleged Rs.1,156 crore in cash deposits in Margadarsi come from? What is the basis for the Rs.2,699 crore calculation? Were RBI regulations violated? Was the case actually quashed, or was it closed because the main accused died? Were land ceiling laws violated in the Ramoji Film City land issue?
From Margadarsi to Ramoji Film City and then to Polavaram, Undavalli’s remarks on each of these issues are likely to trigger considerable political debate.
In particular, his references to the Rs.2,699 crore figure, the alleged Rs.1,156 crore cash deposits, and his explanation regarding the closure of the case have once again put the Margadarsi controversy at the centre of political discussions.
