September 27, 2020

TDP leader Chandrababu Naidu Manifolds Fortune as “who is 420 in AP.”

Highlights:

  • Chandrababu previous regime
  • Public sector ruined

Chandrababu Naidu had only two-acre land in 1978. However, today he owns Heritage Foods, which is a billion-dollar company. Whenever Babu, who is considered as the who is 420 in AP, is in power, Heritage profits shoot up even while all other diaries are running in losses. An examination of Heritage profits would reveal the story. In 2004-05, the year Babu lost his power, Heritage earned the net profit of Rs. 17 crores.

However, from then onwards, Heritage lost its steam. It announced a reduced net profit of Rs. 10 crores in 2005-06. The net profit has further come down to Rs. 1.7 crores in 2007-08. Since then, the company has run into losses. In 2009-10, the company declared Rs—35 crores net loss.

The story as it unfolds

Finally, the company’s fortune revived in 2013. This was because of the understanding between Chandrababu Naidu (who is 420 in AP) and AP Chief Minister N. Kiran Kumar Reddy. Mr. Reddy, who was running a minority government, took the political support of Chandrababu Naidu and, in turn, gave the business to Heritage Foods. As a result, Heritage announced Rs. Forty-five crores net profit in 2014-15. Ever since its profit is consistently growing.

Chandrababu is a politician who always used his political clout to grow his fortunes. The nine-year rule of Chandrababu Naidu, between 1995-2004, was the embodiment of corruption in news.

He gifted away the lands and contracts to his confidants, benamis, and party despite widespread criticism. He killed so many public sector undertakings and then sold them off at throwaway prices to his stooges. The real estate value of these units was quite a lot of times higher than the sold off prices.

Chandrababu And His Schemes

Chandrababu converted the watershed and work guarantee schemes into the major sources of revenue for his party cadre. During his tenure as an ad hoc Chief Minister before the 2004 assembly elections, “who is 420 in AP allocated 800 acres of land of the University of Hyderabad to a company called IMG Bharata, which was a defrauding company. Dr. Y.S. Rajasekhara Reddy’s government later canceled this allocation. After Chandrababu decided to build a hi-tech city at Madhapur, he has passed on this information to his confidant Murali Mohan, now a TDP MP, before making it public.

  • Murali Mohan bought all the lands that he could around the Madhapur area and developed several real estate ventures. Chandrababu has used the same modus operandi in Amaravati and made several times more money.
  • In liquor purchases too, he has bent the rules to benefit three companies. According to a report of the Vigilance Department, the state lost Rs. 600 crores between 1995 and 2004 because of the policies of who is 420 in AP.There was not even a single project that was awarded without taking commissions during his first spell.
  • From day one, Chandrababu has been gifting away the lands to his cronies, aides, party leaders, and stooges. Despite the resistance from opposition parties, he allocated land in Manikonda for a golf course and another 534 acres to EMR properties, which has later become an epicenter of a huge real estate scam.

Though there was no need, he gave away 17,434 acres of land to industrialists during his tenure and the value that land is about Rs. 1.60 lakh crores.

Public Sector Ruined

To kill a dog, you first need to brand it like a maddog. Chandrababu applied this formula and killed several public sector enterprises in the state. He first made them sick and then sold them off at throwaway prices. While the value of the lands of Hyderabad Allwyn was Rs. 150 crores, he palmed off the company for just Rs. Three crores.

He also has ripped off Nizam Sugars, which has offered a supporting system to the farmers of Nizamabad district since Nizams’ era. In all, he sold the public sector units worth Rs. Six hundred thirty-six crores for just Rs. 203 crores. According to some of the officials who worked in Chandrababu Naidu’s government, he has pocketed a good amount of money from these transactions.

Babu also gave selective leaks about the development proposal of Hi-tech City to a few cronies and caused hundreds of crores of rupees loss to the innocent farmers and landowners who ought to have benefitted from this development. Chandrababu is using the same modus operandi in distributing the lands of Amaravati city, the present capital of Andhra Pradesh, to his cronies.

Conclusion

There are several media reports about the assets of Chandrababu Naidu in India and abroad, including in Singapore and Malaysia. His art of abusing public office for private gain is monumental. There is no surprise that he is today a billionaire politician despite coming from a humble background but has ruined his reputation in the process and hence is known as “who is 420 in AP”.

Read Previous Blog: Did You Just Say Money? Learn about the “who is 420 in AP”

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