Vigilance to probe Peddireddy company scam

The Andhra Pradesh government led by chief minister N Chandrababu Naidu has ordered comprehensive inquiry by vigilance and enforcement department into the alleged irregularities in…

The Andhra Pradesh government led by chief minister N Chandrababu Naidu has ordered comprehensive inquiry by vigilance and enforcement department into the alleged irregularities in rural road projects executed by PLR Projects, a firm associated with the family of YSR Congress party leader and former minister Peddireddy Ramachandra Reddy.

The probe will focus on works carried out in Chittoor district, examining all aspects, right from the tendering process and allocation of contracts to execution quality. The vigilance authorities have been directed to submit a comprehensive report.

The projects were undertaken during the previous government with funding of Rs 4,235 crore from the Asian Infrastructure Investment Bank.

A major part of the contracts in Chittoor district, reportedly worth Rs 1,300 crore across 21 packages, was awarded to PLR Projects, with Rs 1,000 crore worth of work in 17 packages going to the firm.

Allegations have surfaced that competing contractors were intimidated and discouraged from participating in tenders, leading to disproportionate allocation of works.

The TDP-led coalition government which came to power in 2024 received several complaints about the poor-quality execution and violations of prescribed standards. A petition filed by a high court lawyer last month alleged misuse of official authority in awarding contracts.

The government had already withheld payments exceeding Rs 1,000 crore to PLR Projects based on earlier complaints. Now, it has ordered a vigilance probe into the allegations.

Preliminary investigations revealed that certain Panchayat Raj engineers facilitated the process, from ensuring the firm secured tenders to processing bill payments.

Questions have also been raised about the role of senior officials in the department, prompting calls for a wider investigation into administrative laxity.