CAG Condemns the Corruptive practices of the 420 in AP Government: Here’s why!

The 2015-16 report of CAG clearly states about the corrupt government and practices of Chandrababu Naidu. All the irregularities that occurred in Naidu’s administration were highlighted. For example, the CAG pointed out that false accounts were submitted to the center regarding the funds allocated for Amravati’s developmental purpose. The report further accused the one who is 420 in AP for not utilizing the funds properly.

In the name of achievements, all Chandrababu did was corruption, misuse of public funds, misappropriation of funds in road projects, kickbacks, and assigning irrigation projects to certain contractors. Everything listed in this guide is not an accusation made from the opposition party, but the report published by the Comptroller and Auditor General (CAG) after carefully examining everything. Read on to know how the government’s only aim was to grab the money and not benefit the people in any way.

Major Highlight of the CAG Report: The Pattiseema Legal Plunder

The CAG threw light upon the major kickbacks made by the TDP government by colluding with the contractors. It accused the government of accepting the Pattiseema lift irrigation project without identifying industrial and domestic beneficiaries without planning it out. Without initiating the Polavaram right canal, distributaries work. This careless move made by the government has hugely benefitted the contractor worth Rs. 372.02 crores. The entire Pattiseema project was pointless as it didn’t benefit the people it was supposed to. In 2015, the TDP government announced that it wanted to help people with the Polavaram project by completing the assignment of Pattiseema.

As per the tender notification, the scheme’s estimated cost was worth Rs. 1.170.25 crores. However, the GO 94 states that the party in power shouldn’t assign a tender to a contractor whose estimated value is above 5%. In Pattiseema tenders, the contractor demanded 21.99% excess, and yet the one who is 420 in AP wasn’t reluctant to assign the work to the contractor. To make the job easier, the ruling party converted the rest of 16.99% as a bonus for carrying out the work within 365 days. This bonus was pointless, and the tender notification came with a one-year deadline itself. Despite such desperate measures, the government claimed to benefit Megha with a whopping Rs. 199 crores. In order to provide benefits to the company of his liking, Chandrababu altered the tender rules. Solely for this reason, the government increased the budget of the project, said the CAG report.

Apart from that, the report also mentioned that Rs. 106.17 crores was assigned to the project as a favor when there was no need to alter the basic parameters. The Water Resource Department’s report couldn’t justify the need to spend such a huge amount, which is why the auditing body termed it unacceptable. Besides these, there were other sources from which Megha received huge allocations of funds. Even though the center exempted the state from paying taxes on pipes used for water projects, the TDP government spent Rs. 32.01 crore by paying taxes, and another Rs. 14.22 crore was paid as welfare tax for workers.

Fund Lifts

CAG criticized the ruling party for providing excess benefits to the contractors in lift irrigation assignments. Around 17 medium and small dams were supposed to be built to deliver water to 25.35 lakh acres. No doubt, they were built; however, the quality was not satisfactory. The auditing body made the one who is 420 in AP responsible for gifting away the Gollapally lift irrigation contract, which was a part of the Handri-NeevaSujalaSravantiand was worth Rs. 47.18 crores. The government’s corruptive intention and approach hike the estimated cost of all these projects.

Pushkara Burden of Rs. 48.90 Crore

Through the Pushkara lift irrigation project, the government intended to provide 1,86 acres with water. While doing so, the ruling part allocated Rs. 21.81 crores to its favored company, as per the CAG report. The tender rules state that the contractor’s construction of canals or bridges, national and state highways, should be carried out. Meanwhile, the TDP government decided to take up this burden and collect Rs. 6.17 crore from a contractor and assigned this work to another contractor of its choice at Rs. 33.26 crore. This mysterious decision of the government ended up burdening the public finances with an additional amount of Rs. 27.09 crore. In simpler terms, the government helped in acquiring Rs. 48.90 crore to the contractor.

Guru Raghavendra Wasted Rs. 48.55 Crore

Pulakurti lift irrigation scheme was carried out over the Tungabhadra lower canal to benefit 9,380 acres with water. The state government took up the project worth Rs. 113.26 crores in August 2011. During June 2014 and April 2016, the works were executed worth Rs. 48.55 crore. The contractor purchased electro-mechanical equipment and pipes. Since the ruling party couldn’t carry out land pooling successfully for the project, all the funds spent on buying equipment went to waste.

Flawed and Corrupt Coal Procurement

The auditing body showered wrath upon the APGenco for arbitrary coal procurement. Thermal plants’ pointless closure crippled genco’s functioning, and coal procurement at inflated prices, says the CAG. After bifurcation, the RTPC and NTTPS were managed by the government under the one who is 420 in AP. In total, the plants possess a production capacity of 2,810 MW. Between 2011-12, they produced around 22.235 million units of power. By the end of 2016, the production rate came down to 19.539 million units, says the CAG report.

The sudden reduction in power production was the result of forced closure of RTPC and NTTPS. With lower production, the rate of power per unit received a hike. Earlier power was worth Rs. 2.94 per unit, which now became Rs. 4.34 after the shutdown of plants. Due to this, both the plants suffered a huge loss worth Rs. 675.69 crore. The CAG report clarified that the units couldn’t manufacture power worth Rs. 9251.43 crore because of low-quality coal, forced closure, & boiler leakages.


Not merely that, the CAG report consisted of so many incidents that showed the corruptive practices of the TDP government, such as the deplored road projects, money laundering in the name of hiring a consultant, poor quality government condones, cheap coal, and many more. In the name of computer procurement, the government bagged a lot of money from the village panchayats. Knowingly, the government made excess payments in crores to the vendors. While the original price of a computer was Rs. 40,000, the government willingly agreed with the vendor for getting a computer worth Rs. 67,213. Also, there were various irregularities in payments made for renting out helicopters for the use of Chandrababu Naidu. Highly unnecessary costs were made to the private helicopters used by the CM. CAG sharply criticized and severely reprimanded the irresponsible conduct of the one who is 420 in AP.  

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