The shock comes as the land allotted to build a commercial airport was 50 kms from Kadapa airport.
It is alleged that Rajashekhar Reddy tried doing his best, so that the Reddy brothers could set up a flying academy and a new airport, said a report in the Mail Online India.
The stunning revelations were made by the Comptroller and Auditor General (CAG) in its report that was tabled in the state assembly on Thursday. The report brought out in open the government's leniency towards granting land to various people and companies at low rates without keeping in consideration the state's interest.
The report also said that the YSR government in Mar 2008 allotted 3,115.64 acres to Reddy brothers for Rs 25,000 per acre at Ambavaram Village, Jammalamadugu block, Kadapa district, to the Brahmani Industries Limited (BIL) in a bid to help them set up their commercial airport and a flying academy. The airport was to be used for commercial operations it said.
For the steel plant Brahmani Steels Limited, the YSR government allotted a land of 10,760.66 acres in Jun 2007, at a rate of Rs 18,000 per acre.
The CAG report said that the Indian government's existing policy does not allow a commercial airport to be set up under private management. The authorities were also dubious of the site for an airport to be set up.
The land was allocated to the Reddy's after the same was taken from Schedule Tribe cultivators, to whom it was originally given, despite an appeal by an individual, who claimed ownership of the land before the Kadapa district judge.
The CAG said that though the land allotted for the airport was only 2,500 acres, the YSR government had granted 3,115.64 acres to Brahmani that was floated by the Reddy brothers. It also said that the chief commissioner of land administration warned against setting up of a second airport in the same area.
Another benefit the YSR government did to the Reddy brothers was to allot 304.66 acres of land at Obulapuram village, Anantapur district for their company, Obulapuram Mining Company (OMC). The company had acquired the government plots that were being orginally assigned to the poor.