BRS working president KT Rama Rao alleged that contracts worth Rs 6,000 crore were awarded to KLSR Infratech despite insolvency proceedings. He demanded cancellation of the works and a probe by central agencies into the alleged irregularities
Published Date – 4 February 2026, 03:36 PM
Hyderabad: BRS working president KT Rama Rao on Wednesday exposed a massive scam involving contracts worth about Rs 6,000 crore awarded to KLSR Infratech, a company allegedly linked to Chief Minister A Revanth Reddy and currently under insolvency proceedings. He demanded immediate cancellation of the contracts, blacklisting of the company and an in-depth investigation by central agencies.
Addressing mediapersons at Telangana Bhavan, Rama Rao said the party had been exposing irregularities in the current Congress government, including controversies around the Musi River project, Lagacherla lands, AMRUT scheme tenders, Singareni coal tenders and HILTP land deals. These revelations had prompted retaliatory summons targeting BRS leaders in the alleged phone-tapping case.
But a deeper probe by the party uncovered a benami operation on an unprecedented scale. The BRS leader linked the controversy to a January 23 Supreme Court notice issued to both the Telangana and Union governments in connection with the company’s insolvency case. The apex court is understood to have sought explanations on how large-scale government contracts were awarded while insolvency proceedings were underway since 2023 and without authorisation from the interim resolution professional (IRP).
Rama Rao alleged that between 2023 and 2025, KLSR was awarded multiple high-value contracts, including the Kodangal-Narayanpur Lift Irrigation Project, even as it remained under insolvency proceedings. He said tenders for Young India Schools, AMRUT and Jal Jeevan Mission works, road contracts in Medak and Suryapet, Mission Bhagiratha supplies, veterinary college construction in Kodangal and other works were all steered to the beleaguered firm.
“The Supreme Court has directly questioned why a bankrupt company was entrusted with Rs 6,000 crore of public money. This is not just governance failure, it is a serious abuse of power, if proven,” he remarked.
Rama Rao urged immediate cancellation of all contracts awarded to KLSR, a complete halt to ongoing works, and blacklisting of the company until the Supreme Court-ordered probe is complete. He said the apex court’s notices implicitly recommended probes by central agencies including the CBI, Enforcement Directorate (ED) and SFIO.
“It is the responsibility of the State and Central governments to act,” he said, directly challenging Union minister G Kishan Reddy, who had recently sought to order investigations only upon the State government’s request. “If the BJP is not trying to shield Revanth Reddy, CBI and ED should step in immediately, as the Supreme Court itself suggested a probe,” he added.
Rama Rao also pointed to alleged attempts to influence the legal process, including pressure on tribunal judges and diversion of funds despite directives to freeze transactions. He cited government records and company disclosures as evidence of the awards.
The BRS working president challenged the Chief Minister to explain how KLSR, which is reportedly reliant on loans just to pay salaries, secured hefty bank guarantees and State government contracts without transparency. He questioned the relationship between KLSR and other firms linked to Revanth Reddy’s family, with IT raids discovering fund flows between these companies in 2018 itself. He also released photographs of Revanth Reddy using a luxury vehicle registered to the firm before he became the Chief Minister.
“We are not making speculative charges. We are speaking with evidence as a responsible opposition,” he asserted, challenging Revanth Reddy and TPCC president Mahesh Kumar Goud to respond to these charges.
