TGIIC in hot water: T Harish Rao flags shady land, dubious NCD deals; SEBI violations in focus

HYDERABAD: Former minister T Harish Rao has urged the Securities and Exchange Board of India (SEBI) to investigate alleged regulatory violations and financial irregularities involving the Telangana Industrial Infrastructure Corporation (TGIIC) and the govt.In a letter to the SEBI chairman on Thursday, Harish Rao objected to the mortgaging of 400 acres of land in Kancha Gachibowli, which a Supreme Court-appointed empowered committee has identified as 'forest-like' and environmentally-sensitive. He alleged that the land was used to raise large sums via non-convertible debentures (NCDs) without proper disclosure of its legal and environmental status to investors."This is not just a financial violation; it is betrayal of public trust and a misuse of natural resources," he alleged.

Harish Rao said TGIIC's actions violated multiple SEBI regulations, including those governing fraudulent practices, NCD listings, and disclosure norms. He also questioned how a corporation with a turnover below ₹150 crore could raise thousands of crores through NCDs.He raised concerns over TGIIC's conversion from a private to a public limited company, alleging it may have bypassed regulatory transparency.Harish Rao claimed merchant bankers were paid over ₹169 crore plus GST for structuring the deals, despite the land's disputed status.