Turbo Aviation Fiasco Raises Question About Babu Era Contracts

Update: 2019-12-04 04:30 GMT
The Turbo Aviation Company, which was among the favourites of former CM Chandrababu Naidu has now been declared insolvent. The company, which was awarded key contracts during Chandrababu Naidu regime, has now proved to be a complete non-starter. Chandrababu has given the contract of the construction of the airport at Dagadarthi in Nellore.  The YSRCP has alleged that the company was financially not sound and technically not competent to execute the contract, But, Chandrababu has gone ahead and gave the contract to the company with questionable background.


Now it turns out that the company has been found to be defaulting paying Rs 2.38 crore loan it had taken from the AP State Finance Corporation.  Though the company has been served several notices, it has failed to repay the loan. As a result, the APSFC has declared it as an insolvent company and has seized a Srivari Villa in Tirupati and the land in Settipalli Industrial Estate near Renigunta from the company.


Now the question is how did such a firm was deemed fit for such a big contract as the construction of an airport. If this is the fate of the Turbo Aviation, what would be the fate of other similar contracts that Chandrababu Naidu has awarded during his regime?
Tags:    

Similar News