Vundavalli questions need for costly bonds

Rajamahendravaram: Former MP Vundavalli Arun Kumar said that the recent Amaravati Bonds will increase financial burden on the state government as  the government should pay quarterly interest of 10.36 per cent on Rs 2,000 crore obtained through them.

Speaking to reporters at Anam Rotary Hall here on Monday, Arun Kumar questioned the need for the state government to issue the bonds at such higher interest rates as the state is already passing through financial crunch. 

He reminded that earlier the state government had passed a GO against taking loans for high interest and now it had violated it its own stipulation.  Criticising the payment of Rs 17 crore to mediator involved in the process of raising money through Amaravati Bonds, he wondered where is the transparency promised by Chief Minister N Chandrababu Naidu.

He said the same mediator earlier came forward to act as merchant bank in the name of AP capital and work with a salary of Rs 1 and asked why now the government had paid Rs 17 crore to him.

He demanded the Chief Minister to disclose the names of nine persons who purchased the bonds immediately after their issue. Vundavalli said Chief Minister Chandrababu Naidu's advisor on Vision 2020 was now behind bars in Switzerland. Stating that the government was minting money on liquor sales, he wondered what would be the fate of the government if drunkards go on a strike for a week.