Revanth smells scam in award of drug contract to KTR's relative

Hyderabad: Making serious allegations on the family of Chief Minister K Chadrashekar Rao, Congress MP from Malkajgiri A Revanth Reddy on Thursday said that a scam has taken place in awarding a big contract to a company of the State.

Addressing the media, he alleged that a company which was directly linked to the family of the Chief Minister has been give a contract for procurement of raw material for preparation of Hydroxy Choroquine drugs.

The Malkajgiri MP alleged that the brother-in-law of Industries Minister KT Rama Rao, Rajendra Prasad Pakala is a director of Lakshmi Life Sciences Private Limited which has been given contract of supplying raw material for manufacturing of Hydroxy Chloroquin.

He said that Indian Institute of Chemical Technologies has entered into an agreement with the Laxai Life Sciences. He said that the state government played a key role in ensuring this contract.

The MP said that about Rs 10,000 crore worth contract was given to the Laxai company which do not have any experience in supplying the raw material. He said that the demand for Hydroxy Chloroquin has been used to make this murky deal.

Revanth Reddy said that though the Chief Minister has been stating that he has been speaking to the Prime Minister to protect the interests of the State in this period of crisis arising out of coronavirus spread, he has used the opportunity to make the murky deal.

He said that the Union government has decided not to depend on China for procuring raw material for preparing Hydroxy Choroquin indigenously and this has been used by Laxai to make huge money in wrong ways.

Revanth said that Rajendra Prasad Pakala became director of the company two years ago and since then it has been making hundreds of crores of rupees. As soon as Rajendra Prasad was made director of the company, it secured about Rs 140 crores investment.

He said that the contract to supply raw material to IICT was given to Laxai ignoring companies which have thousands of crores of turnover every year and have got a lot of experience and expertise.

He demanded the BJP to explain the reason for giving contract to a little known company. He alleged that the leaders of the ruling party have been using the corona crisis to make huge money.

He criticised that the Chief Minister who was supposed to take the issues of the State to the notice of the Prime Minister has used the opportunities to interact with him for personal gains only.