The Story Behind Four-star Hotel In Pulivendula

The Jagan Mohan Reddy-led YCP government’s corrupt deeds are leaving both the political leaders and people in surprise.

In a fresh case unearthed by the TDP alliance government, it was found that the government spent Rs 12.87 crore towards registration of a club house owned by Kadapa MP Avinash Reddy’s relative Vijayabhaskar Reddy. The YCP government stated that the club house would be upgraded for improvement of tourism in Pulivendula.

There are no tourism spots in Pulivendula yet the YCP government invested an additional Rs 23.50 crore for constructing a four-star hotel on the same land. Tenders were also invited by the Pulivendula Area Development Authority (PADA) for construction of the building.

It was decided that funds for the tourism building would be released from the 2023-24 budget and then handed over to the tourism department.

This is just one of the numerous cases of corruption that were planned during the YCP regime.

However, with the TDP alliance clinching power, Jagan’s plans turned topsy-turvy and the building works were stalled but the tender for taking up the works has not been cancelled so far.

Jagan tried to have one palace for himself in every city and a star hotel in every village, with public funds and the tourism department officials co-operated in achieving the endeavor.

In fact, the tourism department is supposed to allocate lands to private parties for development of tourism in public-private partnership (PPP) but in the case of Pulivendula, the club house was purchased in violation of rules.

The club house, spread in 1.71 acres, belonged to Chavva Vijayabhaskar Reddy. A resolution to buy the club house for the development of tourism was passed by the then chairman Varaprasad Reddy, the then special general secretary of tourism department Rajat Bhargava, MD Kanna Babu and other members.

The tourism department spent Rs 1,65,52,800 towards buying the 1.71 acre land, Rs 7,46,19,000 for the building constructed in 46,050 square feet, totaling to Rs 9,11,72,400. Then the amount was revised and Rs 3,75,44,700 was added, totalling to Rs 12,87,17,100 which was paid to Bhaskar Reddy. The registration of the club house was done at the sub-registrar office at Patamata in Vijayawada in September 2023.

During the YCP rule, there was no significant development in the tourism sector in the last five years. Instead, it suffered losses.

After the demolition of the hotel and conference room on Rushikonda, for construction of a palatial building, the tourism wing suffered losses to the tune of Rs 10 crore in the last three years.

Now, the palatial building is not serving as a source of income but the officials are spending funds towards payment of electricity charges.

It is worth noting that the officials who borrowed heavily from the banks stating paucity of funds for repair of hotels and resorts belonging to the tourism department, could find Rs 12.87 crore to purchase the club house in a hurried manner.

It has to be seen what action would the TDP alliance take against the club house.