₹500 crore sea view mansion built by Jagan Reddy govt in focus under TDP rule

The regional office of the environment and forest ministry and the state pollution board members are likely to be part of the composite team. The formal inquiry will examine the financial irregularities, violations of the coastal regulation zone (CRZ) processes, and the involvement of state-level organisations such as the Andhra Pradesh Tourism Development Corporation.

Politics over the palace has taken over the post-poll narrative quickly with TDP minister for industries and governance Nara Lokesh and a YSR Congress Party spokesperson engaging in verbal duels.

“We will get to the bottom of this construction and ensure justice is delivered. The poor struggle to thatch their roof and here the former CM has recklessly spent money from the exchequer to fancy himself,” Lokesh said.

The YSRCP, reduced to just a handful of MLAs in the 175-member Andhra assembly, had weak responses. Countering the allegation, K Ravichandra Reddy from the YSRCP said, “The TDP came into power with a thumping majority. Instead of focussing on delivering the Super Six promises made to the people, they are raking a controversy.”

Other YSRCP members took to X and said that the government building was for multi-purpose use. “The buildings in Rushikonda are government-owned assets and not private property. They do not belong to anyone. These buildings were constructed keeping in mind the priority given to Visakhapatnam by the previous government. It is up to the present government how to use them,” the party said in a post on X.

Over ₹500 crore is said to have been spent on the project although former ministers in Reddy’s government suggest only ₹450 crore was spent on the sea-facing property which overlooks the famous Ramakrishna beach in Visakhapatnam.

As part of redeveloping the state-run Haritha guest houses, the Andhra Pradesh Tourism Development Corporation (APTDC) was tasked with modernising the guest house at the Rushikonda in 2021. However, instead of modest, well-equipped facilities for tourists, three palaces were built on Rushikonda Hill by the Reddy government.

Of the three, the seven-block opulent structure Reddy often used as his camp office is the centre of controversy and contention. What caused a flurry was the clandestine manner in which the construction took place: Trees were felled and the hill slopes were flattened early in the day, before dawn. Truckloads of Italian marble and swanky upholstery encased in lorries were carried up the hill. The nine-acre site was heavily guarded by state police and private security guards and tourists were dissuaded from venturing up the hill, which is otherwise frequented by tourists seeking a breathtaking view of the city.

After several protests by locals and activists failed to garner any response from the government, former union cabinet secretary, EAS Sarma in his letter to the Union environment and forest ministry (MeEF), alleged that borewells were dug on the hill and all the gravel was flung into the sea.

In his letter dated December 2023, Sarma said the CRZ clearance given for the construction work at Rushikonda was valid only if the regulations were followed. He further underlined that the matter was not brought to the attention of the AP High Court and that APTDC would use the developed area on Rushikonda not for tourism but for other purposes, in violation of the CRZ clearance.

RK Roja, actress and former tourism minister of AP government overseeing the project, denied all these charges saying there was absolute transparency in developing the “tourist site”.

Several petitions have been filed in different courts, including the National Green Tribunal (NGT), challenging the construction. The Andhra Pradesh High Court also intervened asking for the APTDC officials to be penalised. It asked the MoEF to set up a joint committee to investigate the rule violations. Petitions were also filed by the Visakhapatnam corporator and a TDP MLA V Ramakrishna Babu.

The political implications of the proposed investigation could unfold differently, political analyst Mallu Rajesh told HT. “The investigation into the sophisticated structure notwithstanding, Jagan could be tried if the state were to prove irregularities in the finances. Jagan sensed this move. And this perhaps is one of the main reasons for him to vacate his party office and move it to the relatively smaller Tadepalligudem town,” he said. Instead of working from the state capital of Vijayawada, Reddy decided to carry out his party work from the Taepalligudem camp office, a move that surprised many.

The state of Andhra’s finances has also come under scrutiny with the Jagan Reddy government borrowings scaling the debt to ₹13.5 lakh crore. Lanka Dinakar, BJP’s Andhra spokesperson said the current debt would roughly translate into a debt burden of ₹2 lakh per citizen if it were to be represented on per capita terms. The BJP officials and Jana Sena party legislators, part of the NDA alliance government, said that it would support the government’s enquiry into the Rushikonda palace investigation.