The CBI, in its chargesheet filed in the Vanpic case, alleged that industrialist Nimmagadda Prasad had a nexus with Ras Al Khaima Investment Authority CEO Dr Khater Massad. However, RAK authorities were not named as accused in the chargesheet. The agency alleged Mr Prasad and his associates had been inducted clandestinely in the allocation of Ongole airport project based on an MoU by circumventing the procedure of competitive bidding. The Ongole airport was earlier proposed to be developed along with the other proposed regional airports. Mr Prasad was not part of the competitive bidding.
CBI alleged that contrary to the provision in the 2008 MoU signed on G2G basis and the assurance given to the state government on share basis, Mr Prasad and his Matrix Enport Holdings unilaterally changed 26 per cent of share to RAKIA and 74 per cent to Nimmagadda Prasad. Mr Prasad was given total control of the Board and day-to-day functioning of the special purpose vehicle for implementation of Vanpic project. “These two clauses were included as part of criminal conspiracy to cheat the state. All the projects were grabbed by these companies in the garb of G2G basis avoiding the competitive bidding process,” the CBI said.
The investigation agency alleged that the then infrastructure minister Mopidevi Venkataramana, in conspiracy with the then chief minister Y.S. Rajasekhar Reddy, recommended conceding the proposals in the draft MoU on “exclusive rights” on radial measure. The malafide decision taken by the minister regarding radial measures led to total control of the area by the project developers.
“It would hamper future development by other parties in setting up port-based industries, commercial fishing jetties, oil exploration bases etc. For setting up of any industry or development activity within 30 km radius on the land front, RAK will get enormous rights of first refusal. This shows unusual enthusiasm by the minister to give more benefits to the proposer,” the CBI alleged.