Tesseract land deal: BRS alleges ₹200 crore scam linked to Telangana CM's brother
Synopsis
BRS's K.T. Rama Rao has dropped a political bombshell — alleging that a company with ₹1 lakh in capital and reportedly no employees was handed 5 acres of prime Hyderabad land worth ₹200 crore for just ₹7 crore, with the Telangana CM's brother allegedly at its helm. If the claims hold scrutiny, it could be the defining corruption controversy of Revanth Reddy's tenure.
Key Takeaways
BRS Working President K.T.
Rama Rao alleged on 11 August that Tesseract Advanced Systems , linked to Kondal Reddy (brother of Telangana CM A.
Revanth Reddy ), received 5 acres of government land worth ₹200 crore for just ₹7 crore .
The company allegedly had a paid-up capital of just ₹1 lakh and reportedly zero employees at the time of allotment.
Rama Rao called Tesseract a 'shell company', citing its website's fake phone number '123456789' and a flat in Patancheru, Sangareddy as its address.
He presented photographs of Kondal Reddy attending a US-India Business Forum meeting as Tesseract's Chairman, contradicting the government's denial of his link to the company.
BRS announced it will approach the Telangana Governor and Lokayukta to demand a formal investigation.
Rama Rao compared the deal unfavourably with the MUDA scam , in which Karnataka CM Siddaramaiah's wife was allotted 3 acres of land.
Bharat Rashtra Samithi (BRS) Working President K.T. Rama Rao on Tuesday, 11 August alleged that the Tesseract Advanced Systems land deal — linked to Telangana Chief Minister A. Revanth Reddy's brother Kondal Reddy — dwarfs the MUDA scam of Karnataka in scale and brazenness. Speaking at a press conference in Hyderabad, Rama Rao claimed that government land worth ₹200 crore was allotted to the company for just ₹7 crore, raising serious questions about due process.
The Core Allegation
According to Rama Rao, Tesseract Advanced Systems — which he described as a 'shell company' — had a paid-up capital of just ₹1 lakh and reportedly zero employees at the time of the allotment. The company's registered address is a flat in Patancheru, Sangareddy district, and its listed phone number on the company website is allegedly '123456789'. 'How can a company with just ₹1 lakh in paid-up capital and reportedly zero employees get 5 acres of land worth ₹200 crore for ₹7 crore,' Rama Rao asked.
He alleged that the prime land — reportedly acquired from farmers in Raviral near Future City — was handed over without following due process. 'Tomorrow, if another startup forms a company with one lakh rupees equity, will you give them land worth ₹200–300 crore just like that without following any due process? Or are there different laws and different rules for your brothers,' he asked, addressing the Chief Minister directly.
Kondal Reddy's Alleged Role
Rama Rao presented what he described as photographic evidence of Kondal Reddy attending a strategic forum of the US-India Business Forum (USIBF), seated next to the US Consul General, with a nameplate identifying him as a representative of Tesseract Advanced Systems. He claimed the meeting itself was hosted by Tesseract.
He questioned the government's position after Industries Minister D. Sridhar Babu had stated that Kondal Reddy had no connection with the company. 'If he is not linked to the company, how was he given membership of the USIBF? In what capacity was he attending the meeting,' Rama Rao asked. He also cited Kondal Reddy's attendance at the forum as its Chairman as further evidence of the alleged link.
Comparison with the MUDA Scam
Rama Rao drew a pointed parallel with the Mysore Urban Development Authority (MUDA) scam in Karnataka, in which Chief Minister Siddaramaiah's wife was allotted 3 acres of land, nearly forcing his resignation. He argued that the Tesseract deal — involving 5 acres worth ₹200 crore — is significantly larger in value and therefore warrants at least as much scrutiny, if not more.
BRS's Next Steps and Political Targeting
Rama Rao announced that BRS will approach the Telangana Governor to demand a probe and will also move the Lokayukta, pursuing all available legal and constitutional remedies. He demanded an investigation into the roles of CM Revanth Reddy, his brother, the concerned ministers, and officials.
He also took aim at the Bharatiya Janata Party (BJP), noting that BRS had filed a complaint about the matter a year ago with no response. 'What kind of understanding is there between you,' he asked. He added that Leader of the Opposition in the Lok Sabha Rahul Gandhi would also have to answer, given the Indian National Congress (INC) government's role in the alleged deal.
Notably, Rama Rao also alleged that the Chief Minister's brothers — Kondal Reddy, Tirupati Reddy, Jagadeesh Reddy — and brother-in-law Srujan Reddy are collectively engaged in securing contracts worth thousands of crores from the Telangana government. The Telangana government had not issued an official response to these specific allegations at the time of this report.
Point of View
If substantiated, represent a serious governance failure — not merely a political controversy. A company with ₹1 lakh in capital and reportedly no workforce receiving prime state land at a fraction of market value would indicate a fundamental breakdown of due diligence in land allotment policy. What is equally telling is BRS's claim that a complaint filed a year ago drew no action from BJP — raising uncomfortable questions about whether opposition parties are selectively pursuing accountability or quietly accommodating each other's political interests. The Telangana government's silence on the specifics, combined with the Industries Minister's denial that was quickly challenged with photographic evidence, suggests the ruling Congress will need to provide far more than a denial to put this issue to rest.
NationPress
11 Aug 2026
Frequently Asked Questions
What is the Tesseract land deal in Telangana?
The Tesseract land deal refers to the alleged allotment of 5 acres of government land in Raviral near Future City, Hyderabad — reportedly worth ₹200 crore — to Tesseract Advanced Systems for just ₹7 crore. BRS has alleged the company is linked to Kondal Reddy, brother of Telangana Chief Minister A. Revanth Reddy.
Why is BRS comparing this to the MUDA scam?
BRS leader K.T. Rama Rao argues the Tesseract deal is bigger than Karnataka's MUDA scam, where CM Siddaramaiah's wife was allotted 3 acres of land. The Tesseract deal allegedly involves 5 acres worth ₹200 crore, leading BRS to call it a larger and more brazen instance of alleged cronyism.
What evidence has BRS presented against Kondal Reddy?
BRS presented photographs of Kondal Reddy attending a US-India Business Forum strategic meeting as the Chairman of Tesseract Advanced Systems, seated next to the US Consul General with a nameplate identifying his affiliation. This contradicts the Telangana Industries Minister's claim that Kondal Reddy has no connection with the company.
What action is BRS planning over the Tesseract land deal?
BRS has announced it will meet the Telangana Governor to demand a probe, approach the Lokayukta, and pursue all available legal and constitutional remedies. K.T. Rama Rao also said BRS will hold both the Congress government and the BJP accountable, noting a year-old complaint to BJP has gone unanswered.
Who is Tesseract Advanced Systems?
Tesseract Advanced Systems is a company allegedly linked to Kondal Reddy, brother of Telangana CM A. Revanth Reddy. According to BRS, the company had a paid-up capital of just ₹1 lakh, reportedly no employees, a residential flat in Patancheru as its address, and a fictitious phone number listed on its website.
