According to the report, a major violation was in the construction of the building on shikam (lake) land.
The committee has also favoured a probe into the role of the former Chief Minister, Mr N. Chandrababu Naidu, and bureaucrats, in offering exemptions for the project. They found about 34 lapses and recommended that the complex be turned into a children's museum. A report has been submitted by the committee to the Speaker, Mr K.R. Suresh Reddy. According to the report, a major violation was in the construction of the building on shikam (lake) land.In the 38-page report, the committee recommended that all the dues from the management be recovered and stringent action be taken against those who flouted rules and allowed the construction of the complex.
The Chairman of the Committee, Mr C. Narsi Reddy, said that the Telugu Desam Government had handpicked two bidders when 15 others responded to an advertisement. Against the rules, the project was awarded to Prasad's to construct the complex. The land earmarked for Yatri Nivas was allotted for this project.
While the lease term was extended from 25 years to 33, the management was asked to pay only five per cent against the usual 10 per cent of the total revenues to the State. They were also given entertainment tax exemption.
