YSR Congress MP Alleges Massive Real Estate Scam in Amaravati

P.V. Midhun Reddy, the YSR Congress Party Lok Sabha floor leader, strongly criticised the Chandrababu Naidu government in the Lok Sabha on Thursday. He accused the government of turning Amaravati into a large-scale real estate scam involving benami transactions and backdoor dealings, leading to the misappropriation of public money under the guise of capital construction.

Speaking during the debate on the AP Reorganisation (Amendment) Bill – 2026, Midhun Reddy stated, “Amaravati is not being built as a people’s capital but as a profit-making venture for a select few.” He alleged that insider trading had taken place before the capital was officially announced, with thousands of acres of land being acquired from poor farmers at discounted prices by those privy to advance information.

He questioned the extensive scale of land acquisition, highlighting that while Delhi covers around 10,500 acres, Amaravati was expanded to almost 100,000 acres. This unnecessary expansion has burdened farmers, many of whom remain without their returnable plots even after a decade, causing significant distress.

Highlighting financial irregularities, Midhun Reddy stated, “While construction costs in cities like Delhi are around Rs. 4,000 per square foot, the Andhra Pradesh government is claiming over Rs. 12,000 per square foot in Amaravati, despite raw materials like sand being freely available. This raises serious questions about where the additional Rs. 8,000 per square foot is going.” He referred to tenders worth Rs. 55,000 crore that have been floated, pointing to large-scale misuse of public funds, and called for immediate intervention by the Centre.

He also noted, “The government betrayed farmers who gave 34,000 acres under land pooling in 2015 with promises of developed plots, education, and housing benefits, none of which have been fulfilled even after seven years of Chandrababu governance.” This betrayal has further fueled the farmers' distress and mistrust in the government.

Further, Midhun Reddy criticised the broader financial management, stating that while the government struggles to pay salaries on time, it continues to promote a capital project requiring investments worth lakhs of crores, casting doubt on its sustainability.

He opposed the amendment bill, saying that “it legitimises injustice to farmers and facilitates corruption,” and stressed that YSRCP supports Amaravati in principle but is against exploitation and misuse of public resources. Raising national concerns, he pointed out that Special Category Status has been abandoned and that restrictions on the Polavaram project could cause major financial losses to Andhra Pradesh, worsening economic difficulties.

Midhun Reddy reaffirmed YSRCP’s commitment to decentralising development, citing global multiple-capital models, and argued that concentrating large investments in one region is impractical and inequitable.

Concluding his speech, he stated that the party would continue to combat corruption and injustice. Following his address, all YSRCP MPs staged a walkout from the Lok Sabha in protest against the bill, despite attempts by ruling party members to disrupt the proceedings.