The claim of Pratyusha Resources and Infra Company for damages of Rs 1.31 crore at 36 per cent annual interest rate for cancelling of tender to develop District Library Building is ridiculous, according to YSR Congress district spokesperson P. Murthy Yadav. The award of the development of the land of the district library to the company, for which HRD Minister Ganta Srinivasa Rao was a director, was cancelled much before he became a Minister in the earlier Congress regime due to blatant violations of the agreement.
Charge against Ganta
However, the Minister misused his position to ensure that the land was not given back to the library to take up the construction of its own building. In view of this, it was ridiculous for the company to try to blame the government for the project not taking off and claim a compensation of Rs 1.31 crore as damages with a penal interest rate of 36 per cent per annum, Mr. Yadav said.
In the first place it was the company that was responsible for not taking up the project in time and putting up the claim for damages after Ganta Srinivasa Rao took over as HRD Minister only shows malafide intention of the company, he alleged. The government should reject the claim and penalise the company for misrepresenting facts, he demanded. Since the subject comes under the Minister, there was every likelihood of the company getting undue favours from the government, he charged and demanded that the government not to succumb to pressures from the company and the Minister.
