Chandrababu Must Reveal Names Of Investors In Amaravati Bonds: Undavalli

Rajamahendravaram: Former MP Undavalli Arun Kumar demanded that the names of the nine investors who had purchased the Andhra Pradesh government's Amaravati Bonds be revealed. The government would have to pay an interest at the rate of 10.36% for the Rs 2,000 it borrowed, and, on top of this, the Telugu Desam Party (TDP) government has paid a commission of a whopping Rs 17 crore to the middlemen, he observed. Speaking to media here, he said that the same government withdrew loans for higher interest rate, after issuing Government Orders that warned against borrowing loans at higher interest.

Undavalli questioned the intention behind offering Rs 17 crore towards commission to AK Capital, which had earlier proposed to act as the merchant bank. "It is unfortunate that the government is encouraging the sale of cheap liquor. A bottle of liquor is being sold at a cost of Rs 50, while only Rs 8.50 is being spent on manufacturing. The retailers would earn Rs 3.75 per bottle, while the government earns Rs 37.75," he explained.

The burden of loans on the government is Rs 2.25 lakh crore, out of which Rs 1.30 lakh crores was borrowed in the last four years of Chandrababu Naidu's rule, the former MP said. The State government is obliged to providing the particulars of payment towards taxes, service charges and others on the receipt provided after filling petrol at fuel stations, he added, saying that in Kerala the receipts are provided at fuel stations.

Also Read: Borrowing Based On Amaravati Bonds, Not An Achievement: Ambati Rambabu