Amaravati or ATM? 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.