Hyderabad: T Harish Rao, a senior leader of the BRS, called for an immediate probe by the Securities and Exchange Board of India (SEBI) into possible rule violations by the Telangana State Industrial Infrastructure Corporation (TGIIC) and the Government of Telangana.
Harish Rao emphasized concerns in a comprehensive letter to the SEBI Chairman. He highlighted issues over the mortgaging of 400 acres in the Kancha-Gachibowli area. This land, identified by a Supreme Court-appointed committee as ‘forest-like’ and sensitive, was reportedly used to secure funds through Non-Convertible Debentures (NCDs) without revealing its true legal and environmental status. Rao criticized this as a breach of public trust and misuse of resources.
Additionally, Rao questioned TGIIC’s financial credibility. With a reported annual turnover of less than Rs 150 crore, the corporation is raising thousands of crores via NCDs, raising concerns about its ability to repay and adhere to disclosure norms. He also pointed out a recent change in TGIIC’s corporate structure from private to public, suggesting it might not comply fully with regulatory standards.
Rao noted that merchant bankers received over Rs 169 crore plus GST to manage these transactions, despite the disputed status of the collateral land. He stressed that this is a matter of regulatory compliance, environmental responsibility, and public interest, urging SEBI to thoroughly investigate and ensure accountability.
