Hyderabad: Bharat Rashtra Samithi (BRS) working president and ex-Telangana industries minister KT Rama Rao (KTR) on Monday, March 10, alleged that chief minister Revanth Reddy is involved in a real estate scam to the (estimated) tunes of thousands of crores in the state. KTR alleged that the CM is “orchestrating the scandal” by giving Transferable Development Rights (TDR) to a handful of select “real estate brokers”.
In an interaction with the media, KTR said that according to “serious allegations from various quarters”, the Telangana chief minister and four real estate brokers closely associated with him are manipulating the system to “execute what could be one of the largest financial scams in recent times”. He further alleged that the four real estate brokers are actively “identifying and acquiring” TDR rights across Hyderabad.
KTR’s allegations comee just days after the Telangana government said that it is preparing to auction 400 acres of prime land in Gachibowli (Hyderabad) to generate funds for various development programs. The Telangana Industrial Infrastructure Corporation (TGIIC) has been assigned the task of designing a master layout for the land.
KTR claimed that the alleged brokers are working “relentlessly to corner the TDR market” by purchasing these rights at throwaway prices in Hyderabad. “The purported plan involves imposing restrictions on the Floor Space Index (FSI) in Hyderabad by Revanth Reddy to artificially spike the demand for TDRs. Once the demand surges, the group intends to offload these TDRs at exorbitant rates, pocketing massive illicit profits,” he added.
The ex-industries minister of Telangana said that the TDR system was originally intended to facilitate urban development without straining public finances. He also accused Revanth Reddy of manipulating policies for profit. “If Revanth Reddy has nothing to hide, he should release a white paper detailing the current ownership and transactions of TDRs in Hyderabad,” KTR said.
KTR stated that the TDR system was introduced to acquire land for public needs without financial burden on the government. “Through this mechanism, the Greater Hyderabad Municipal Corporation (GHMC) amassed approximately 400 acres of land, valued at thousands of crores, from citizens for infrastructure projects,” said a press release from KTR’s office on the matter.
“Revanth Reddy must clarify his stance and provide evidence to refute these claims. Failing that, we demand accountability through legal and investigative action,” added KTR.
What is a TDR?
Transferable Development Rights (TDR) is a planning tool used in urban development. It enables landowners to sell their unused development rights to developers in areas where higher density is allowed.
TDR scam simplified
Brokers reportedly obtain TDR rights at extremely low prices by using special access or favouritism. Key individuals are said to influence policy decisions, such as limiting the floor space index in certain areas, which results in a restricted supply of TDRs. Once the supply is limited, the scarcity drives up the value of TDRs. the brokers then sell these rights at much higher prices, earning significant profits.
