The Visakhapatnam Metropolitan Region Development Authority has found itself at the centre of an administrative and political controversy, following allegations of financial irregularities levelled by local Jana Sena Party (JSP) leader Peethala Murthy Yadav against Metropolitan Commissioner N. Tej Bharat.
Mr. Yadav accused the VMRDA Commissioner of serious financial mismanagement and questioned several expenditure decisions taken by the authority, and demanded a comprehensive government inquiry.
In a statement issued on Friday, the VMRDA Employees’ Union dismissed the accusations as baseless and defamatory, motivated by personal vendetta. The union said that the Commissioner had been instrumental in accelerating infrastructure projects in the region, including the successful completion of the NAD flyover, the inauguration of Asia’s longest glass bridge, and the installation of the Damaru-Trishul structure.
Furthermore, the union highlighted that the authority had significantly bolstered the IT wing, enhancing transparency, citing the Vista and Nirman applications as successful initiatives that improved revenue and quality control. The union maintained that all procurement, including electronic equipment, strictly followed transparent tender processes under the supervision of the board.
However, Mr. Yadav accused the Metropolitan Commissioner of presiding over a major financial crisis. He alleged that approximately ₹2 crore was being spent annually on the development of a dozen mobile applications. He termed the contracts as a misuse of public funds, and alleged that a single firm, Entro Labs IT Solutions, was awarded contracts for drone-based surveillance, procurement of computers worth ₹4.5 crore, and the installation of a new gym at inflated costs.
The JSP leader also questioned the transfer of ₹75 crore in fixed deposits to a private bank in Rajahmundry, a city outside the VMRDA’s jurisdiction. He alleged that the Commissioner had centralised financial authority by seizing check power. Additionally, he alleged that consultants from KPMG were being paid ₹30 lakh monthly despite minimal work output.
Mr. Yadav sought an immediate high-level inquiry into the wasteful expenditure and warned that such alleged mismanagement threatened the survival of the authority’s sinking funds.
The Employees’ Union has urged the Jana Sena leadership to bring these grievances to the notice of Deputy Chief Minister Pawan Kalyan rather than resorting to public accusations that they claim demoralise staff.
Published - July 10, 2026 09:11 pm IST