Erstwhile Praja Rajyam Party chief and Congress leader Chiranjeevi has asked the Chief Minister Kiran Kumar Reddy to initiate an inquiry in to the awarding of Bhavani Island Resorts contract to Prathyusha Associates Shipping Corporation Pvt Ltd owned by state infrastructure minister Ghanta Srinivasa Rao. Chiranjeevi asked for the probe in the backdrop of TDP senior leader Devineni Umamaheswara Rao's allegations that Chiranjeevi and his brother-in-law Allu Arvind have benami shares in the deal.

At a press conference on Tuesday, the PRP MLAs - Katasani Rami Reddy, K. Srinivasa Rao, Y. Srinivasa Rao, and P.Ramesh Babu along with Congress legislators R. Padmaraju and D. Vijaya Kumar flayed TDP MLA Devineni Umamaheswara Rao for levelling baseless allegations. Denying any wrong-doing or the use of influence to bag the global tender, Mr. Padmaraju said the firm owned by Mr. Ganta Srinivasa Rao got the tender after it offered Rs. 200 crore for a 37-year lease, while the next highest bidder had quoted Rs. 30 crore. The second bidder was a TDP sympathiser, who had leased out his building to the TDP office in Vijayawada and had set his eyes on the contract, Mr. Y. Srinivasa Rao said. He said it was totally false to allege that Mr. Ganta Srinivasa Rao was the front for Mr Chiranjeevi.

The leaders said that TDP MLA D Uma Maheswara Rao was making cheap and baseless allegations against the minister saying that he was a benami for his leader Chiranjeevi. "The company owned by Srinivasa Rao quoted the highest amount in its bid, which was around Rs 200 crore for 30-year-lease period, while the second highest was around Rs 30 crore, which was submitted by a TDP leader from Vijayawada. Uma Maheswara Rao was making the allegation only to ensure that the minister will give up and the tender would go to his party colleague," they said. They also said that Srinivasa Rao was an MP and also MLA while he was in Telugu Desam Party. He is subjected to criticism and wild charges by others because he quit the party to join the PRP.