A powerful lobby in the state administrative set up is opposing any compromise with the scandal hit Emaar Properties which offered to restore the 26 per cent stake of the APIIC in the Emaar Hills Township Project at Manikonda village in Ranga Reddy district.

Health minister DL Ravindra Reddy paid a sudden visit to Delhi two days ago to plead with the congress president Sonia Gandhi’s political secretary Ahmad Patel not to accept the plea of Emaar Properties for a compromise.

He suggested to the congress high command that there is a clinching evidence of the former Kadapa MP YS Jaganmohan reddy in the Emaar Properties scam and severe action can be taken against him citing his role in the scam when he becomes a real threat to the congress leadership or government in the state.
There is enough evidence to suggest that Emaar Properties had opened a subsidiary in Mauritius in the name of Emaar Mauritius and the funds of this company were transferred to a company owned by Jagan.

Ravindra Reddy argues that if the offer of the Emaar Properties is accepted for a compromise and 26 per cent stake of the APIIC is restored, then the case of illegal funds transfer to the Jagan company would lose its relevance.

Apart from Ravindra Reddy, APIIC chairman G Sivasubramanyam is also against accepting the offer of the Emaar Properties. He has been pleading for criminal action against those who are involved in the scam.