Telangana Chief Minister A. Revanth Reddy on September 1 announced that the state government will hand over the probe into alleged irregularities in the Kaleshwaram Lift Irrigation Project to the Central Bureau of Investigation (CBI).
Speaking in the Legislative Assembly after a short discussion on the Judicial Commission’s report on Kaleshwaram, the Congress CM said the involvement of multiple central and state departments, agencies, and financial institutions necessitated an inquiry by the CBI.
“Since several central government organisations and financial institutions were involved in the project’s design, construction, and financing, the House has decided to hand over the investigation to the CBI with the Speaker’s permission. Our government is issuing orders accordingly,” he said.
కాళేశ్వరం ప్రాజెక్టులోని మేడిగడ్డ, అన్నారం, సుందిళ్ల బ్యారేజీ నిర్మాణం – జస్టిస్ పినాకి చంద్రఘోష్ విచారణ కమిషన్ నివేదికపై శాసనసభలో సుదీర్ఘంగా చర్చించిన మీదట తదుపరి విచారణకు ఈ మొత్తం వ్యవహారాన్ని సీబీఐకి అప్పగించాలని రాష్ట్ర ప్రభుత్వం నిర్ణయించింది. ఆ మేరకు శాసనసభలో ముఖ్యమంత్రి… https://t.co/J9H4cnHUqs pic.twitter.com/gLnq2elfz8
— Telangana CMO (@TelanganaCMO) August 31, 2025
Revanth Reddy stated that the Kaleshwaram project involved interstate aspects, with various departments and agencies from both the Centre and the States playing a role. He pointed out that central government sector organisations such as WAPCOS, along with financial institutions like PFC and REC, were directly involved in the project’s design, construction, and financing. Given these factors, he said, it was appropriate to hand over the case to the Central Bureau of Investigation (CBI). Accordingly, the Assembly resolved to entrust the investigation to the CBI.
The CM revealed that the government has so far paid Rs 49,835 crore towards loans for the project, including Rs 29,956 crore as interest and Rs 19,879 crore as principal. He added that he secured a debt restructuring of over Rs 26,000 crore from the Centre. He accused the previous BRS government of raising loans at exorbitant interest rates and altering project plans for financial gain.
Reddy alleged that the then government shifted the location of the barrage from Thummidihatti to Medigadda, despite objections from a committee of retired engineers, with the intent of looting public funds.
On August 31, Uttam Kumar Reddy, state Irrigation Minister, tabled the 665-page report of the Judicial Commission headed by former Supreme Court judge Justice P.C. Ghose. The commission held former CM K. Chandrasekhar Rao directly and vicariously responsible for irregularities in the planning, construction, and maintenance of the three barrages. It recommended that the state government take action against him as per law.
Kaleshwaram India’s Biggest Man-Made Financial Disaster
The then Congress Government launched Pranahita-Chevella in 2009 with Central Water Commission processing under the Accelerated Irrigation Benefits Programme, and that interstate arrangements with Maharashtra on barrage… pic.twitter.com/DxWPzvFez7
— Uttam Kumar Reddy (@UttamINC) August 31, 2025
During the discussion, BRS legislators staged a walkout, alleging they were not given sufficient time to present their version. The BRS has condemned what it termed as a conspiracy by the Congress party over the Kaleshwaram issue. In protest, the party has given a call for two days of state-wide dharnas on for next days.
The Commission, which submitted its report on July 31, pointed out that the then irrigation minister Harish Rao issued random instructions, while the finance and planning minister Eetala Rajender acted indifferently towards the state’s financial health. However, it concluded that the ultimate accountability rested with the then Chief Minister.
Bandi Sanjay, Central Minister and BJP leader asserted that the BRS is solely responsible for the massive corruption in the Kaleshwaram project. He recalled that from the very beginning, the BJP had demanded a CBI probe, but the Congress government shielded the BRS and deliberately delayed action. He said that the government has now bowed to the truth and agreed to hand over the case to the CBI. He further demanded that the letter to the CBI be sent immediately, cautioning that in the past, Congress had announced an SIT on the ORR toll tenders in the Assembly but never actually appointed it.
BJP’s stand vindicated.
BRS is solely responsible for the massive corruption in Kaleshwaram. From the very beginning we demanded a CBI probe, but Congress shielded BRS and delayed action.
Today the govt has bowed to truth and agreed to hand over the case to CBI. We demand the…
— Bandi Sanjay Kumar (@bandisanjay_bjp) September 1, 2025
The Kaleshwaram Lift Irrigation Project, built on the Godavari river in Bhupalpally district, was conceived as a multi-purpose project. Damage to the Medigadda barrage, constructed during the BRS regime, has since turned into a major political issue in Telangana.
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