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BRS Leader Raises ₹500 Crore Scam Allegations Over Telangana Residential School Food Procurement

May 22, 2026
BRS Leader Raises ₹500 Crore Scam Allegations Over Telangana Residential School Food Procurement
BRS Leader Raises ₹500 Crore Scam Allegations Over Telangana Residential School Food Procurement

Hyderabad: A prominent BRS leader and member of the legislative council has levelled serious charges against the state government regarding procurement practices for residential schools serving underprivileged students.

Professor Dasoju Sravan, through a formal communication to Chief Minister A. Revanth Reddy and the state's top bureaucrat, contends that the centralization of food and essential supplies purchasing represents a ₹500 crore scam. He further maintains that this restructuring has created opportunities for approximately ₹100 crore in commissions.

The centralized system now manages procurement for groceries and basic commodities supplied to students in SC, ST, BC, Minority and General category welfare hostels and educational institutions across Telangana.

Concerns Over Administrative Changes

Sravan has questioned the wisdom of stripping district collectors of their procurement responsibilities, roles he notes have traditionally encompassed significant functions including property acquisition, water management initiatives, public distribution schemes, and electoral administration.

The BRS politician contends that weakening district-level procurement structures has enabled the concentration of purchasing power at the central level, thereby facilitating commission extraction and favoring both ruling coalition figures and select business interests.

Food Quality and Local Agriculture

The MLC has additionally raised concerns about the removal of Tandur red gram from institutional meal plans. He asserts that authorities intend to substitute indigenous pulse varieties with more economical imports sourced from African nations.

Tendering Duration Questioned

Sravan has criticized the government's departure from the established quarterly tender framework historically employed by the Telangana State Food Corporation. Under that system, fresh procurement cycles occurred every three months, allowing administrators to capitalize on market price movements.

The shift toward annual tender cycles, he argues, locks the government into purchasing at existing market rates regardless of subsequent price reductions, thereby inflating long-term expenditures on commodities.

Small Supplier Exclusion

The ₹165 crore revenue threshold embedded in tender specifications has drawn particular criticism from Sravan. He maintains this requirement effectively eliminates small-scale traders and women's collective enterprises from participation in school food supply contracts.

As an alternative, Sravan has advocated for direct procurement through MARKFED from regional cultivators at government-set minimum rates. He has additionally proposed incorporating women's self-help organizations in processing and delivery functions.

Such a cooperative framework, in his assessment, would simultaneously support agricultural producers, create employment in rural communities, and diminish operational expenses. The current arrangement, he contends, prioritizes corporate interests over student nutritional requirements.

Existing Legal Challenges

Sravan has referenced unresolved litigation before the High Court concerning centralized procurement of dormitory furnishings and school uniforms. He has also questioned the engagement of the identical Project Monitoring Unit in the grocery acquisition process.

Political Implications

The BRS legislator has warned that government functionaries and elected representatives implicated in these procurement decisions would face judicial examination should a future administration led by K. Chandrashekar Rao assume office.

Sravan has demanded the immediate termination of the centralized residential school food procurement framework and reinstatement of purchasing authority at the district administrative level.

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