CAUGHT IN CONTROVERSY: A view of Prasad's IMAX theatre complex.

HYDERABAD: The Assembly Committee on IMAX theatre complex, located close to Hussainsagar here, has recommended a CBI inquiry into the alleged irregularities in its construction, the role of former Chief Minister N. Chandrababu Naidu and bureaucrats.

In all, it has found 34 lapses and recommended that the complex be turned into a children's museum.

After a lengthy and heated debate on the issue, the Government had in 2004 constituted a House Committee to probe the allegations levelled by Congress MLA P. Janardhan Reddy.

Report submitted

It was headed by then Makthal MLA C. Narsi Reddy (Congress). After he was gunned down by the Maoists, G. Gurunath Reddy, Kodangal Congress MLA, took over as chairman.

Mr. Gurunath Reddy and other members, including Mr. Janardhan Reddy, G. Kishan Reddy (BJP) and T. Padma Rao (TRS), submitted the report to Speaker K.R. Suresh Reddy on Sunday.

P. Keshav of the TDP, who wanted to write a dissenting note, failed to do so, Mr. Gurunath Reddy and others told reporters later.

The chairman said: "A major violation is the construction of the building on `Shikam' land." In the 38-page report, the committee recommended recovery of all dues from the management and stringent action against those who flouted rules and allowed the complex to come up. It met 44 times.

`Blatant' exemptions

Mr. Gurunath Reddy said the TDP Government had handpicked two bidders when 15 others responded to an advertisement.

Against rules, it favoured Prasad's to construct the complex and allotted prime land at Yatri Nivas to `E' City Entertainers (P) Ltd, he added.

Mr. Chandrababu Naidu had even inaugurated the complex when mandatory permissions were not issued, he said.

The management had not even paid taxes as it had obtained a stay. It was supposed to pay Rs. 3-crore revenue.

Mr. Janardhan Reddy said Mr. Naidu had gone out of the way to favour Prasad's and "blatantly" allowed exemptions.

The committee found that the lease was increased from 25 to 33 years and the management asked to pay only 5 per cent, against the usual 10 per cent, of the total revenue.

According to the committee, the theatre was given entertainment tax exemption. Despite objections from some officials, the TDP Government had cleared the project, Mr. Janardhan Reddy alleged.

"My only concern is that the complex housing five theatres should take care of the lives of hundreds of cine-goers. Uphaar-type tragedy (in Delhi) should be avoided," he said.

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