Sat Jan 10 16:40:07 UTC 2026: ### Headline: Andhra Pradesh: YSR Congress Alleges Corruption in Amaravati Land Pooling Scheme II

The Story:

On January 10, 2026, YSR Congress Party State coordinator Sajjala Rama Krishna Reddy accused the coalition government in Andhra Pradesh of ignoring farmers’ concerns related to the Amaravati capital project. Reddy specifically criticized the Land Pooling Scheme II (LPS II), alleging it was undertaken with undue haste and lacked proper justification. He questioned the need for an additional 50,000 acres when the initial phase of development remained incomplete. Reddy raised concerns about the allocation of returnable plots in low-lying areas, making them difficult to sell, and accused the government of unrealistic promises. The YSR Congress leader also questioned the inflated construction costs and commission-based contracts, suggesting that Amaravati had become a hub of scams.

Reddy contrasted this with the perceived commitment of Y.S. Jagan Mohan Reddy to the Amaravati project, citing his construction of a house and the YSRCP central office in the area before the 2019 elections. He also accused N. Chandrababu Naidu of diverting attention from a secret deal with Telangana regarding the Rayalaseema lift irrigation scheme, a claim allegedly revealed by Telangana Chief Minister A. Revanth Reddy. Reddy further compared the TDP’s alleged raising of ₹3 lakh crore in less than two years with the YSRCP’s borrowing of ₹3.30 lakh crore over five years, emphasizing that ₹2.73 lakh crore of the latter was directly distributed through welfare schemes.

Key Points:

  • YSR Congress alleges the coalition government is rushing Land Pooling Scheme II without proper development of LPS I land.
  • Concerns raised over the allocation of returnable plots in low-lying areas.
  • Amaravati development is estimated to require ₹1 lakh crore in the first phase, raising completion doubts.
  • Allegations of inflated construction costs and commission-based contracts.
  • YSR Congress contrasts Y.S. Jagan Mohan Reddy’s commitment to Amaravati with N. Chandrababu Naidu’s actions.
  • Accusation that Naidu is diverting attention from a “secret deal” with Telangana regarding the Rayalaseema lift irrigation scheme.
  • Comparison of TDP’s and YSRCP’s borrowing and welfare spending.

Key Takeaways:

  • The Amaravati capital project remains a highly contentious political issue in Andhra Pradesh.
  • Allegations of corruption and mismanagement continue to plague the project, raising questions about transparency and accountability.
  • The contrasting claims about financial management by the TDP and YSR Congress highlight the ongoing political rivalry between the parties.
  • The Rayalaseema lift irrigation scheme appears to be another point of contention, potentially straining relations between Andhra Pradesh and Telangana.

Impact Analysis:

The ongoing political dispute over Amaravati’s development and the allegations of corruption could significantly impact investor confidence and the overall progress of the capital project. These accusations can erode public trust in the government and create an uncertain environment for businesses and residents. The purported “secret deal” regarding the Rayalaseema lift irrigation scheme could lead to further disputes between Andhra Pradesh and Telangana over water resource allocation, impacting agriculture and regional stability.

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