February 12, 2025
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SC Orders Telangana Govt and BHEL to Submit Documents in Palamuru-Rangareddy Project Corruption Case

The Supreme Court has directed the Telangana government and Bharat Heavy Electricals Ltd (BHEL) to submit original files concerning alleged financial irregularities in the Rs 35,000 crore Palamuru-Rangareddy Lift Irrigation Scheme (PRRLIS). The case stems from a public interest litigation (PIL) filed by former MLA Nagam Janardhan Reddy, who claims the project suffered from inflated costs and procedural violations. The court, in an order issued on December 18, instructed the Telangana government to provide documents related to cost estimation, while BHEL was asked to submit records of its joint venture with Megha Engineering Infra Ltd (MEIL), detailing equipment supplied and payments received.

The allegations include a cost escalation of electro-mechanical equipment for the project from Rs 5,960 crore to Rs 8,386 crore without proper procurement procedures, resulting in a loss of Rs 2,426 crore to the public exchequer. The PIL further accuses the state of bypassing national or global quotations and entering into a joint venture with MEIL, which allegedly benefited the private company unduly. The irrigation scheme, which aims to divert 90 TMC feet of water annually from the Krishna River’s Srisailam reservoir, is designed to irrigate 1.23 million acres in Telangana.

The Telangana High Court had earlier dismissed Reddy’s PIL, prompting him to approach the Supreme Court. The state government argued that the case was inadmissible due to pending petitions in the high court. However, Reddy’s counsel clarified that the Supreme Court petition focuses specifically on corruption allegations, which have not been adequately addressed. The latest directive follows a prior hearing in August 2022, where the Supreme Court had raised preliminary objections from the state government.

Pic Courtesy: google/ images are subject to copyright

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