Hyderabad Businessman Alleges Chief Minister's Connection to Insolvent Firm in Supreme Court Plea
In a dramatic development before the Supreme Court of India, Hyderabad-based businessman Saurabh Agarwal, who serves as director of Bengal Cold Rollers, made startling allegations on Friday. He informed the apex court that Telangana Chief Minister A Revanth Reddy is the indirect owner of KLSR Infratech, a Hyderabad-based firm embroiled in a contentious insolvency battle. Agarwal asserted that he is facing persistent harassment due to this ongoing legal confrontation.
Petition Seeks CBI and ED Investigation into Alleged Judicial Interference
Agarwal approached the Supreme Court with a petition demanding a thorough investigation by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED). His plea centers on claims made by a member of the National Company Law Appellate Tribunal (NCLAT) Chennai bench, who reportedly stated that a revered member of the judiciary attempted to influence him to issue an order favorable to KLSR Infratech.
During the hearing, Agarwal's counsel, Ashwini Kumar Upadhyay, presented grave concerns to the bench comprising Chief Justice Surya Kant and Justice Joymala Bagchi. Upadhyay highlighted that Agarwal's 75-year-old mother had been arrested by police, placing the family under significant pressure and duress.
Supreme Court Adjourns Matter, Awaits NCLAT Decision
The Supreme Court bench, exercising judicial caution, adjourned the matter to April 10. The court directed that if the NCLAT delivers its order in the pending appeal before that date, it should be presented before the Supreme Court for further consideration. The bench explicitly noted that any intervention or observation at this juncture could potentially prejudice the appeal currently before the NCLAT.
"Because we have already requested the tribunal to decide the appeals in a time-bound manner, we will keep this matter pending. Let the appeal be decided first," the bench stated, emphasizing the importance of allowing the appellate process to conclude without external influence.
Allegations of Fraud and Judicial Influence Detailed in Petition
The background of the case reveals serious allegations. Agarwal has accused the suspended management of KLSR Infratech of orchestrating a sophisticated fraud, allegedly siphoning off nearly ₹150 crore. Furthermore, he claims that high-level judicial influence has been employed to stall insolvency proceedings for over 30 months, significantly delaying resolution.
In his petition, Agarwal referenced proceedings at the NCLAT Chennai, where member Justice Sharad Kumar Sharma reportedly recused himself after making a shocking disclosure. Justice Sharma allegedly revealed that a sitting Chief Justice of a high court had approached him, seeking a favourable order for the suspended directors of KLSR Infratech. Notably, Agarwal claimed that Justice Sharma even displayed his mobile phone in court, showing call logs and messages from this esteemed judicial figure.
Legal Proceedings and Political Accusations Intertwine
While the insolvency case has been transferred to the NCLAT principal bench in Delhi and is being heard daily, the Supreme Court proceedings saw Solicitor General Tushar Mehta representing the authorities. Senior counsel Mukul Rohatgi appeared on behalf of KLSR Infratech, presenting their side of the legal arguments.
In a related political development, BRS working president KT Rama Rao, during a press conference in Hyderabad on February 4, alleged that the Telangana state government had awarded tenders worth ₹6,000 crore for various state projects to the insolvent firm KLSR. This accusation adds a layer of political controversy to the already complex legal scenario.
KLSR Infratech was formally admitted into the Corporate Insolvency Resolution Process (CIRP) in July 2023, marking the beginning of its financial restructuring under legal supervision. The Supreme Court has indicated that it will review Agarwal's present petition based on the eventual decision in the NCLAT appeal, maintaining a measured approach to these serious allegations.
