After Praja Vedika demolition, Jagan now threatens legal action against Naidu for irregular power deals

After the demolition of Praja Vedika, former Andhra Pradesh chief minister N Chandrababu Naidu’s property, Chief Minister Jagan Mohan Reddy has now threatened to take legal action against him for huge irregularities in power purchase agreements with solar and wind companies that allegedly cost the state exchequer a loss to the tune of Rs 2,636 crore.

Reddy also asked officials on Wednesday to take steps to recover the amount. He wondered why the government had to buy the power at a rate much higher than the competitive bidding price.

Chief minister Reddy has ordered legal action against Naidu, the then energy minister and other senior officials who entered into the agreements.

According to an official release, Reddy ordered constitution of a cabinet sub-committee to probe the corruption indulged in previous by Telugu Desam Party (TDP) government headed by Naidu. The panel will look into 30 issues. It will be assisted by Anti-Corruption Bureau (ACB), Crime Investigation Department (CID) and Vigilance and Enforcement.

He formed another committee to re-negotiate the agreements with solar and wind power companies. The chief minister said if necessary, the agreements will be cancelled.

(With agency inputs)