Govt raps Naidu on IMG Bharat deal

The Andhra Pradesh government today came down heavily on former chief minister and TDP president N Chandrababu Naidu for "going out of the way" to favour IMG Bharat, a locally registered company with an authorised share capital of just Rs 5 lakh.

"The Naidu government had allotted IMG Bharat more than 850 acres of land on nominal price besides issuing orders to hand over all the important stadia in the city on a 45-year lease for free. The former chief minister's decision exceeded all limits of decency and democratic conventions as the orders of such a magnitude were issued after the dissolution of the state Assembly," state finance minister, K Rosaiah, said.

In the orders issued in February 2004, the then government decided to sell 850 acres of land in Hyderabad to IMG Bharat in two phases.

In the first phase, the company was given 400 acres of land for just Rs 50,000 per acre in the prime Gachibowli area. The government also issued orders to transfer identified stadia properties on a long-term lease for not less than 45 years along with complete rights on all kinds of revenue being generated on them.

Besides, the Naidu government also offered a maintenance cost of Rs 2.5 crore a year for the first five years, $5 lakh a year for first five years towards defrayment of IMG cost for city promotion, free electricity and water supply, and a 10-year entertainment tax holiday among other incentives. The government had taken this decision in the name of promoting sports and games in the city.

Rosaiah told newspersons here on Wednesday that there was no official communication from IMG of Florida stating any kind of arrangement with IMG Bharat till date to enable the government to verify the credentials of the company, promoted by Ahobila Rao alias Billy Rao and his brother P Prabhakar Rao alias Pat Rao.

"Even the parent company IMG has only 120 acres of land in Florida while its 'subsidiary' in Hyderabad has been given 850 acres for development of golf course and other sports facilities in and around Hyderabad," the minister said.

The issue has been in the news for the second time with Chandrababu Naidu making serious allegations of corruption against the state government during his campaign for the ensuing municipal elections. The state government formed a Group of Ministers to study the decisions of the previous government taken especially during the last six months in office.

According to the minister, the government has already cancelled the orders involving allotment of 450 acres under the second phase to IMG Bharat while studying legal implications with regard to the other decisions taken by the previous government. IMG Bharat has already got 400 acres in Gachibowli registered on its name.