The Kancha Gachibowli land was offered as collateral, and it underwent thorough verification by SEBI and NSE, duly following the procedures

metro india news  I hyderabad

The Telangana Industrial Infrastructure Corporation (TGIIC) has clarified that money was raised through bonds by duly following procedures. “The Rs 10,000 crore was raised through bonds listed on the NSE, in full compliance with SEBI regulations, informed a senior TGIIC official. Several prominent financial institutions and mutual funds showed interest due to TGIIC’s strong track record.

Each bond, valued at Rs 1 lakh, was purchased by investors, including members of the general public. The Kancha Gachibowli land was offered as collateral, and it underwent thorough verification by SEBI and NSE, duly following the procedures. As per revenue records dating back to 1954, the official stressed that the land is classified as government land.

“Allegations that the land was undervalued are baseless. The fair market value of the land was determined to be over Rs 20,000 crore. Following standard practice, we secured a loan equivalent to 50% of that value — Rs 10,000 crore — at a favorable 9.35% interest rate, which is lower than the current market rate of around 11%.

ICICI Bank acted solely as a facilitator and not as a direct lender. Similar to how GHMC issued bonds during the previous BRS regime and raised loans, TGIIC has followed the same model, maintaining full transparency and regulatory compliance throughout the process," stated the senior official, who did not wish to be quoted. Informing about the timeline for this whole process, the official said that it started around October, and the money was raised in December first week.

Meanwhile, TGIIC Chairperson Nirmala Jagga Reddy stated that TGIIC strictly followed all due procedures and regulations in raising Rs 10,000 crore through bonds.  Addressing concerns raised by rivals about raising a loan against land allegedly categorized as forest area, Nirmala said that she would like to clarify that the 400-acre parcel was formally handed over to TGIIC by the revenue department, and there was no mention of it being forest land in any official records.”