Hyderabad, Jan 20: Under instructions of Andhra Pradesh Chief Minister Y. S Rajasekhara Reddy, a Government Order (GO) was passed to allot 50 acres of land to Satyam Computer Services in Visakhapatnam for developing an IT Special Economic Zone (SEZ).

Reddy had earlier denied giving any political patronage to former Satyam Chairman, B Ramalinga Raju.

He told a TV channel that Raju had already become very big before he became Chief Minister.

Raju received protection under his predecessor Telegu Desam Party (TDP) chief Chandrababu Naidu, he added.

He also dismissed the charge that his government had given Maytas Rs. 7000 crore worth of land or other contracts.

The Chief Minister claimed that his Government has a foolproof system of contract bidding and believed that Satyam got land and contracts because of its strong competitive bids in the market.

The Government order 1439 was issued on December and claims that the land worth Rs. 60 lakhs to Rs. 80 lakhs per acre having huge auction rates of Rs. 4 crore to Rs. 4.5 crore, was allotted to Satyam at a minimal Rs. 10 lakh per acre, resulting in a loss of Rs. 195 crore or more to the State exchequer.

This land was initially sanctioned for the Visakhapatnam Urban Development Authority(VUDA) to create a Greyhounds commando-training center.

The Chief Minister and the State Government jointly entered into a Memorandum of Understanding (MOU), on May 10 2005, with Satyam Computers for allotment of 50 acres of land to build up their software development centre at Thotlakonda Hills, Kapuluppada village in Bhimunipatnam mandal of Vishakapatnam district.

Satyam paid a subsidised rate of 5.01 crore and the area was declared as an SEZ through a Government order on June 1, 2007.

However, soon after, the district collector complained to the State Government stating that the 50 acre land was actually meant for police department establishments which resulted in issuing of the government order.

The Government order lead to allotment of 25 acre of land to the police department and giving the other 25 acres of land to Satyam from the adjoining urban development authority land.

The Government order claimed that it had no other choice than allotting 25 acres of urban development authority land, as there was no other suitable land for the purpose in that locality.

Reddy who was summoned by the Congress High command to discuss various issues including the Telanga statehood, also shunned away the suggestion that the Satyam episode would have any political fallout against Congress in coming elections.

He, however, said that they could not come out with any result over the Satyam scam issue. (ANI)