"You are doing real estate business and hurting people's interests for your commissions and bribes. You are handing over lands as per your wish to foreign Singapore and private companies. I do not wish to come (to the foundation ceremony) as a protest against your attitude and not to support you in this scam," Reddy said in an open letter to Chief Minister N Chandrababu Naidu.
The foundation stone for the AP's capital city Amaravathi would be laid by Prime Minister Narendra Modi on 'Vijaya Dasami' on October 22.
The state government has said it is organising the event by sending out invitations to several VVIPs in the country and by involving farmers and common people across the state to promote a sense of belongingness with the capital city.
The YSRCP president mentioned several reasons in the open letter for him not attending the event.
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"Why Section 144 (of CrPC) and Section 30 is in force in the capital region? If people are happy, why these sections are in force? Why these prohibitory sections are being used for the last one year," he said.
The government is making "wasteful expenditure to the tune of Rs 400 crore" for a one-day event, he alleged.
Observing that his party is not against construction of capital city, Reddy said he is opposing the event as it has become a "real estate business".