Geography Reference
In-Depth Information
Congress MLAs who had just been elected was secured through similar largesse. Others
benefited through smooth approvals of business ventures.
To expedite such deals, a chief minister would staff his office with selected bureaucrats,
who would do his bidding and were skilful at writing carefully worded tenders and other
official documents that favoured certain businesses. They would also steer project ap-
provals through government departments and, local sources allege, ensure that owners of
land wanted by YSR and Jagan did not succeed if they complained to the police and other
authorities.
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Naidu's Deals
These activities escalated a style of operating that had been used to a far lesser degree in
some other states, and by YSR's predecessor as chief minister, Chandrababu Naidu, whose
friends and relatives benefited from projects. 'Bureaucrats and their business friends ex-
plained to politicians the potential of this sort of public-private partnership (PPP) that led to
a flurry of investment projects,' says a local journalist. Projects in Naidu's tenure included
the internationally famous Hi-Tec City. Well-known companies such as Microsoft, Infosys
and Wipro were given generous terms to build facilities, and local real estate companies
were encouraged to make parallel investments on the basis of advance inside information.
Another project initiated by Naidu was the Hyderabad international airport, developed by
a consortium led by GMR. The deal was completed during YSR's time and the consorti-
um was given a large land allocation of 5,400 acres that triggered a property bubble in the
nearby area of Shamshabad.
Relatively few formal allegations of corrupt deals came to light during Naidu's time as
chief minister, despite his real estate links. Observers were surprised that the YSR gov-
ernment did not build up formal inquires and court cases against his predecessor, as often
happens when state governments change. Only in two cases was any action initiated. One
involved suggestions that the state government took bribes on alcohol sales from 1999 to
2003 (after a period of prohibition from 1995 to 1997), with AP Beverages Corporation,
the government-run (and sole) liquor agency in the state, buying from distilleries at a large
premium. A Congress supporter went to court with the allegations, but investigations were
stopped on an appeal from Naidu, then the chief minister. When YSR came to power, there
was talk of reviving the case, but nothing was done.
The other case arose in 2004 when Naidu, who was acting as caretaker chief minister
in the run-up to elections, approved the allocation of 850 acres in two locations at a
throwaway price of Rs 50,000 per acre to IMG Bharata for a sporting academy, along with
other sports management activities. In preparation, Naidu created a sporting image for the
