The Andhra Pradesh government, led by Telugu Desam Party president and Chief Minister N. Chandrababu Naidu, is reported to have ordered an investigation into alleged malpractices in awarding a contract to Raghava Constructions, owned by former MP and current Telangana minister Ponguleti Srinivas Reddy.
Ponguleti, despite being a Telangana leader from Khammam, secured several contracts in Andhra Pradesh for his firm during the YSRCP government led by Y.S. Jagan Mohan Reddy. One of these contracts involved laying underground electric cables in flood-affected areas of Andhra Pradesh.
The contract, worth Rs 1,600 crore, was awarded in December 2022 to Ponguleti's firm, despite stiff competition from other companies across the country.
While the project cost was estimated at Rs 1,116 crore, Raghava Constructions was awarded the contract for Rs 1,599.93 crore. It is alleged that Jagan favored Ponguleti due to their personal relationship.
The Naidu government has reportedly ordered a probe into the awarding of this contract at an escalated cost to Raghava Constructions.
Additionally, the firm has not yet begun work on the project, even more than a year and a half after being awarded the contract.
As a result, the Naidu government has issued notices to the company, seeking an explanation and urging them to commence the work as soon as possible.
In November 2023, Income Tax department officials conducted searches at Ponguleti’s residence in Khammam and 12 other locations, including the office of Raghava Constructions.
Similar raids were conducted in 2018, but Ponguleti reportedly managed to avoid legal action using his influence.
The business connections between Ponguleti and Jagan date back to before the bifurcation of the combined Andhra Pradesh.
In 2014, Ponguleti was elected as a YSRCP MP from the Khammam parliamentary constituency. He later defected to the BRS, seemingly with Jagan's approval.
After Jagan became the Chief Minister of Andhra Pradesh in 2019, Ponguleti secured several contracts in the state, despite being primarily involved in Telangana politics.
