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Hyderabad: The Justice PC Ghosh Commission has directly held former chief minister and Bharat Rashtra Samithi (BRS) chief K Chandrashekar Rao (KCR), along with former irrigation minister T Harish Rao, responsible for irregularities in the planning, design, construction, operation and maintenance of the Kaleshwaram Lift irrigation project’s barrages.

Chief minister A Revanth Reddy announced that the Commission’s report will be tabled in the Telangana legislative assembly and council in the coming monsoons session. He said that a fair chance will be given to KCR, leader of the opposition, and Harish Rao, to give their explanation.

After taking opinions from all, he said further action will be initiated. He made it clear that the state government will not resort to political vendetta, and will act as per the system.

Telangana irrigation minister N Uttam Kumar Reddy briefed the cabinet about the 650-page report on Monday, August 4, in Hyderabad.

The report mentioned the names of KCR 32 times, Harish Rao 19 times and former minister Eatala Rajender 5 times. Rajender is now a BJP Lok Sabha member.

Decision to shift the project from Tummidihatti to Medigadda

The Commission observed that KCR was pre-determined and bent upon constructing the barrage
at Medigadda at his free choice, and the authorities associated with the decision-making facilitated it.

The Commission felt that the reason given that there was no availability of water at Tummadihatti, and hence, the construction of barrage was shifted from Tummidihatti to Medigadda didn’t appear to be
sincere and honest.

Though the then Union minister of water resources Uma Bharati had written a letter to the state government on March 13, 2015, that the hydrology of the Dr BR Ambedkar Pranahitha Chevella Sujala Sravanthi (later renamed as Kaleshwaram Lift Irrigation Scheme) was cleared on October 24, 2014; the project authorities had submitted a modified hydrological series for approval on November 24, 2024.

The Commission noted that the allegation that there was no availability of water at Tummidihatti was not correct and genuine, which could be understood from the letters written by the Central Water Commission (CWC) to the state government that the hydrology of both Tummidihatti and Medigadda were the same.

The Commission also made it clear that the experts’ committee of retired engineers constituted by the state government had concluded that the construction of barrage at Medigadda was neither advisable, nor economical.

During Harish Rao’s deposition before the Commission, he has not denied the submission of the report to the state government, and has not stated whether the government had considered that report.

“Therefore, the Government and K Chandrasekhar Rao as the then CM and T Harish Rao, as the then Minister for Irrigation intentionally have not considered the report of the Expert committee,” the Commission observed.

The Commission noted that the then irrigation principal secretary SK Joshi , engineers-in-chief C Muralidhar and B Hari Ram, suppressed the report of the expert committee with malicious intention to enable KCR and Harish Rao to go ahead with their intention to construct the barrage at Medigadda.

“The action to be taken shall be severe for the reason that had this report not been suppressed,
construction of Barrage at Medigadda could not have been taken up,” the Commission recommended.

Administrative approvals given without cabinet’s consent

The Commission pointed out that Rs 2591 crore for construction of Medigadda barrage was not placed before the cabinet, and was issued pursuant to the orders of KCR and Harish Rao.

The Commission also stated that the works for the main components like guide bunds and flood banks were treated as ‘additional works’ and were given on nomination basis. The state government had also agreed to execute coffer dam and guide bunds which were in the contractor’s scope of work, citing verbal instructions from the chief minister.

Works worth Rs 369 crore were added in the revised estimates (RE-1) without basis in the detailed project report (DPR), which the Commission termed ‘clinching evidence’ of an intent to siphon public funds to
unduly favour agency.

The Commission mentioned the letter written by KCR to Prime Minister Narendra Modi on February 11, 2016, arriving at the Kaleshwaram project’s cost as Rs 71,436 crores, even before WAPCOS’s had submitted its final DPR.

The Commission also noted that the Kaleshwaram Irrigation Project Corporation Limited (KIPCL),
which was established as a Special Purpose Vehicle (SPV) to “plan, appraise, approve, release funds,
implement, manage, operate, monitor and evaluate the project” and seek financial support,
“has not played its incumbent role” beyond raising loans and issuing cheques.

On Eatala Rajender and Harish Rao

The Commission also stated that then minister for finance and planning Eatala Rajender remained as a tacit perpetrator, and Harish Rao allowed KCR to fulfil his desire.

It also felt that Eatala Rajender demonstrated “lack of commitment and integrity in safeguarding the financial and economic health of the newly formed State,” pleading ignorance of crucial financial decisions related to the project.

Role of KCR in causing distress to the barrages

The Commission observed that one of the factors for the failure of proper operation and maintenance, and consequential failure of the barrage was on account of impounding of water and storing water in the barrages to their full capacity.

“The then Chief Minister acted against the interests of the state and had no sincere, honest and conscientious mind to protect and safeguard the three barrages constructed at huge cost of thousands of crores of public money,“ the Commission noted.

“The Chief Minister acted not as the head of the Government but as the administrative executive himself,” the Commission added.

The Commission further held that the involvement and directions of KCR minutely towards planning,
construction and operation of the three barrages was the cause and result of irregularities and distress to the three barrages.

Design deficiencies

The Commission stated that the barrages were designed on “permeable foundations,” but were
“utilized as storage structures,” which is against the standard practice.

Crucial studies like “back water studies, tail water rating curves, G-D curves and geophysical investigation were not done” at the shifted Annaram and Sundilla barrage locations.

The Commission also found various defects in the construction of Medigadda barrage, whether it was “inferior construction of plinth slab and joint” observed at Pier 20, or in testing of concrete samples.

No operation and maintenance

The Commission stated there was neither operation and maintenance activity, nor any O&M manual or an agreement with the contracting agencies L & T, Afcons and Nava Yuga, detailing the tasks and payments.

Undue favours to the agencies

The Commission observed that the issuance of “Substantial Construction Completion Certificate” on September 9, 2019 and “Certificate of Completion of Works” on March 15, 2021 for Medigadda barrage was “wrong, illegal and tainted with malice to do undue favour to the Agency,” as works were not fully completed and defects were known.

The Commission also saw premature release of bank guarantees, unjustified extension of time and relaxation of contract conditions was done in “wrongful collusion with the Agencies to unduly favour them.”

Officials held liable

The Commission found the then chief secretary and chairman of KIPCL SK Joshi as liable for serious lapses. The chief minister’s secretary Smita Sabharwal, additional secretary to finance, secretary to finance, secretary to irrigation, and members of KIPCL Board liable.

The Commission found former engineer-in-chief (irrigation) C Muralidhar Liable for dishonest suppression and overreach of authority.

The members of the High Power Committee (HPC) were found liable for gross irregularities and facilitating illegal decisions.

Former engineer-in-chief (irrigation), Kaleshwaram N Venkateswarulu, and chief engineer (Kaleshwaram) B Hari Ram were also found to be liable for action.

Chief engineers of the Central Designs Organization (CDO) T Srinivas and A Narendar Reddy, superintending engineer KSS Chandrashekar and executive engineer Basavaraju were found liable for criminal breach of trust.

Action against chief engineers J Sridevi, G Ramesh and J Ashirwadam of Telangana Engineering Research Laboratories (TGERL) was also recommended.

Engineer-in-chief (General) G Anil Kumar, engineer-in-chief (O&M) B Nagender Rao, executive engineers and superintending engineers of Barrage (Construction Certificates), chief engineer of State Dam Safety
Organization T Pramila, chief engineer of hydrology and investigation Shankar Naik, and members of state level standing committee were found liable for action.

The Commission also found chief engineers of CDO T Srinivas and A Narender Reddy, executive engineer of Ramagundam Sardar OImkar Singh, chief engineer B Hari Ram to have committed perjury, held liable for action.

Massive financial implications

The Commission noted that the project, which was initially conceived at Rs 38,500 crore for Pranahitha Chevella Sujala Sravanthi, was escalated to Rs 71,436 crore for Kaleshwaram Project, but later saw revised administrative approvals totaling over Rs 1,10,248.48 crore by March 2022.

The Commission found that KIPCL raised loans of Rs 87,449.15 crore (as of March 2022) with state government guarantees, for which “the burden of repayment of the loan and interest is likely
to fall on the State Budget.”

According to Uttam Kumar Reddy, as of September 2024, Rs 29,737.06 crore has been paid towards principal and interest. The balance outstanding principal is Rs 64,212.78 crore, and with an approximate
additional interest payable of Rs 41,638 crore.

A colossal waste of public money

The Commission concluded that the entire project was characterized by “rampant and brazen procedural and financial irregularities.”

The Commission felt that the Kaleshwaram project, which was intended as a “lifeline of the State of Telangana,” has became a colossal waste of public money due to a profound failure of governance, planning, technical oversight, and financial discipline, driven by the individual decisions and undue influence of political leadership.

On July 31, the Justice PC Ghose Commission, headed by retired Supreme Court judge Pinaki Chandra Ghose, submitted its report to the Telangana government.

The Commission probed the alleged irregularities in planning, design, construction, quality control, operation and maintenance of Medigadda, Annaram and Sundilla Barrages of the Kaleshwaram project constructed by the previous government of Bharat Rashtra Samithi (BRS).

During the last 15 months, the Ghose Commission examined over 115 witnesses, including engineers and retired and serving officials associated with the barrages and others.

KCR appeared before the Commission on June 11, explaining the need to redesign and re-engineer the Kaleshwaram project.