SC Hears Arguments In PRLI Irregularities Case

The Supreme Court today conducted a hearing on a petition filed by former minister Nagam Janardhan Reddy, alleging corruption in the Palamuru-Rangareddy Lift Irrigation Scheme (PRRLIS), a Rs 35,000 crore project in Telangana.

Reddy called for an independent investigation into the purported financial irregularities associated with the project's execution.

The bench, comprising Chief Justice Sanjiv Khanna and Justice Sanjay Kumar, examined arguments from both Reddy and the representatives of Megha Engineering & Infrastructures Limited (MEIL), the firm implicated in the allegations.

Previously, the court had directed Bharat Heavy Electricals Limited (BHEL) to submit the original documents related to its joint venture with MEIL, detailing the equipment supplied and the payments received for the project. During the proceedings, Reddy's counsel, Prashant Bhushan, referenced BHEL's affidavit, asserting that its contents substantiated the allegations of inflated costs and procedural violations. He said that the payments made to BHEL amounted to less than one-third of the government tender, suggesting discrepancies in fund allocation.

Advocate Mukul Rohatgi, representing MEIL, contended that similar petitions had been dismissed by the Telangana High Court, and that related cases were still pending. In response, Bhushan emphasized the urgency of an independent probe, citing clear indications of irregularities.

Chief Justice Khanna acknowledged the affidavits and rejoinders submitted, indicating that they would be considered in the court's deliberations.

The Supreme Court has scheduled the next hearing for May 13, during which it will further assess the necessity of an independent investigation into the alleged corruption surrounding the PRRLIS project.

For context, the PRRLIS aims to lift 90 thousand million cubic feet of water from the Srisailam reservoir to irrigate 1.23 million acres across Telangana. The project, inaugurated in September 2023, involves four pumping stations implemented in 18 packages.

Allegations suggest that the cost of the electro-mechanical equipment required was escalated from Rs 5,960 crore to Rs 8,386 crore without following standard procurement procedures, potentially causing a loss of Rs 2,426 crore to the public exchequer. The State reportedly failed to seek national or global quotations for the equipment, opting instead for a joint venture between BHEL and MEIL, which allegedly benefited the private company unduly.