Loot, Share, Repeat: Epicentre of Mega Corruption
The Chandrababu government is running its administration on a “loot, share, and consume” model under the guise of Amaravati development. Criticism is mounting that the capital works are largely being used as a means to fill pockets rather than create real infrastructure. Allegations suggest that public funds worth thousands of crores are being diverted through a network benefiting associates and ultimately funnelling back to those in power. Recently, government orders were issued allocating huge sums for various works, raising suspicions that these are structured to benefit select individuals.
Rs. 2,316 Cr for MEP Works
A government order issued on the 16th of this month allocates Rs. 2,316 crore for MEP (Mechanical, Electrical, and Plumbing) works in the GAD Towers within the Amaravati Government Complex. These funds are meant for electrical systems, fire safety, lifts, plumbing, and related infrastructure. Notably, this amount exceeds half of the total cost of constructing the five towers. The GAD Tower, part of the integrated Amaravati Government Complex, is designed as an iconic structure with Basement + Ground + 47 floors, housing the Chief Minister’s Office and camp office.
Escalation of Estimates
Initially, five iconic towers (GAD + 4 HoD towers) were estimated at Rs. 4,688 crore. After tender revisions in June 2025, the total construction cost was reduced to Rs. 3,673 crore. The GAD Tower alone was finalized at around Rs. 882 crore, awarded to NCC Limited. Other towers were awarded to Shapoorji Pallonji and L&T.
Despite this, allocating Rs. 2,316 crore solely for infrastructure works has drawn criticism from engineers and experts, who question how such a disproportionate allocation is justified.
Corruption from the Start
Allegations suggest that corruption began at the very stage of capital location selection. Through coordinated publicity, land prices were manipulated, and key insiders were allegedly informed in advance, enabling them to acquire land at low prices. These lands have now appreciated multifold, raising questions about who truly benefited.
Removal of Safeguards
It is alleged that mechanisms like judicial preview and reverse tendering, introduced earlier to ensure transparency, were scrapped after the coalition came to power. In their place, systems such as mobilisation advances were reintroduced, allegedly enabling large-scale financial misuse.
75% Increase in Estimates
Tenders earlier estimated at Rs. 43,000 crore have now reportedly been inflated to Rs. 77,500 crore, an increase of nearly 75%. Critics question whether such escalation is justified.
Secretariat Costs Doubled
The Secretariat project, earlier estimated at Rs. 2,271 crore in 2018 (with some groundwork already completed), has now been re-tendered at Rs. 4,689 crore, almost a 100% increase.
While national highways are constructed at approximately Rs. 20 crore per km, Amaravati roads are reportedly costing Rs. 50–60 crore per km. Similarly, Rs. 1,650 crore has been allocated for High Court and Assembly buildings, with costs significantly exceeding earlier benchmarks.
Experts question the necessity of constructing buildings larger than the Supreme Court or Parliament, calling it financial excess and wasteful expenditure.
Tender Syndicate
In recent tenders worth Rs. 27,160 crore across 59 packages, contracts were allegedly awarded to a limited group of companies at prices 3.9% to 4.3% higher than estimates, imposing an additional burden of Rs. 1,049 crore on the exchequer. Officials suggest that if reverse tendering had been followed, savings of Rs. 2,500–Rs. 3,000 crore could have been achieved.
Luxury Residence
There are also allegations that commissions derived from capital works are being used to construct a lavish private residence in Amaravati. Land measuring 5.16 acres in Velagapudi was reportedly purchased at Rs. 18.75 crore (Rs. 7,500 per square yard), while prevailing market rates are said to be Rs. 60,000–Rs. 70,000 per square yard, indicating a much higher real value. Questions are being raised about the scale of expenditure involved in constructing such a residence.
