BRS Flags Alleged Irregularities in Telangana’s ₹800 Crore PMU Tenders

Former minister and BRS MLA Harish Rao has demanded the immediate cancellation of the Telangana government’s centralised Project Management Unit (PMU) tenders for supplying essential commodities to Gurukul schools and welfare hostels, alleging irregularities in the procurement process. He called for the restoration of the earlier district-level purchase committee system during a meeting with representatives of the Telangana Gurukulam Contractors Association at his Hyderabad residence on Tuesday.

Harish Rao argued that treating each school as an independent procurement unit and assigning supply contracts to local vendors through district purchase committees would benefit both students and small businesses. He said the earlier system supported thousands of local business families while helping ensure that students in Gurukul institutions and welfare hostels received fresh, quality supplies.

Questioning the award of a contract worth ₹800 crore to a company allegedly blacklisted after the forfeiture of its deposit in Telangana Civil Supplies, Harish Rao demanded an explanation from the government. He also alleged that subcontracting arrangements were being made in violation of established rules. According to him, ₹2 crore was allegedly being collected from each district as goodwill money, taking the total to ₹66 crore, while commissions of 20 per cent were reportedly being charged on monthly bills.

The BRS leader questioned Chief Minister A. Revanth Reddy’s silence over allegations that a senior IAS officer was managing the arrangement from a private office in Ameerpet. He also cited Andhra Pradesh, claiming that a similar centralised procurement model had failed within three months, prompting the state to return to its previous system. He asked why Telangana was following a model that had allegedly proved unsuccessful elsewhere.

Harish Rao further alleged that contracts were awarded at prices 35 to 45 per cent higher than local vendor rates, despite shortcomings in supply. Of the approximately 4,000 hostels in Telangana, supplies had reportedly reached only 280 centres. He claimed that the commodities delivered were substandard and lacked essential details such as brand names, bills and expiry dates.

Referring to alleged irregularities in earlier purchases of uniforms and notebooks, Harish Rao accused the government of allowing questionable practices to affect essential supplies meant for disadvantaged students. He urged the government to scrap the PMU tenders and restore the local procurement system, warning that the BRS would launch a large-scale agitation if the demands were not addressed.