The Supreme Court on Friday heard a Public Interest Litigation (PIL) filed by former Telangana minister Nagam Janardhan Reddy, alleging irregularities in the Palamuru-Rangareddy Lift Irrigation Scheme. Chief Justice Sanjiv Khanna and Justice Sanjiv Kumar reviewed arguments from legal representatives of Nagam Janardhan Reddy and Megha Engineering & Infrastructures Limited (MEIL).
As per the court’s December 2024 directive, Bharat Heavy Electricals Limited (BHEL) submitted an affidavit detailing its role in the project, including the machinery used and related invoices.
Allegations of Corruption
Senior advocate Prashant Bhushan, representing Nagam Janardhan Reddy, contended that the BHEL affidavit substantiates claims of financial mismanagement. He pointed out that the affidavit indicates that less than one-third of the agreed payment under the government tender was made to BHEL. Bhushan argued that this supports allegations of corruption and urged the court to order an independent investigation.
Chief Justice Sanjiv Khanna confirmed that the court is considering both BHEL’s affidavit and the rejoinders filed by Nagam Janardhan Reddy.
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High Court Dismissals and Pending Review
Senior advocate Mukul Rohatgi, representing MEIL, informed the court that the Telangana High Court had previously dismissed three related petitions, with additional cases still pending.
Following arguments from both parties, the bench stated that it would deliberate on whether to direct an independent probe. The next hearing is scheduled for May 13.
Case Background
Nagam Janardhan Reddy initially filed the PIL in the Telangana High Court in 2017 while serving as a BJP leader. He challenged the awarding of a joint contract to BHEL and MEIL, alleging a financial loss exceeding Rs 2,000 crore to the state exchequer.
The petition further claimed that the estimated cost of project equipment was fraudulently increased from Rs 5,960 crore to Rs 8,386 crore. Reddy sought a Central Bureau of Investigation (CBI) inquiry, but the Telangana High Court dismissed his plea, prompting him to escalate the matter to the Supreme Court.