Hyderabad: India’s ruling Congress party is facing another huge embarrassment, after the naming of senior Rajya Sabha member K.V.P. Ramachandra Rao by the Federal Bureau of Investigation (FBI) in the United States over a bribery case.

Rao, a former adviser to the late chief minister Y.S. Rajasekhar Reddy, has denied the allegations.

A US grand jury has named him along with a controversial Ukranian tycoon Dmitry Firtash and four others for alleged conspiracy to pay at least $18.5 million (Dh67 million) in bribes to state and central government officials to secure a project to mine heavy metals from beach sand in north coastal Andhra districts

While the episode has given fresh ammunition to the opposition, which will seize upon it as further evidence of the Congress party’s scam-tainted rule in the state, Rao said in a statement, “I cannot say anything based on newspaper reports. I will be able to say anything only after I receive communication on the charge made against me. I am a loyal Congressman and willing to face any action by the party leadership”.

The charges relate to 2006 agreement between the Andhra Pradesh Mineral Development Corporation and Bothli Trade AG, a subsidiary of Group DF, a Conglomerate owned by Ukranian tycoon Dmytro Firtash.

The agreement was to set up a joint venture for mining of heavy metals including Titanium on the beach of Visakhapatnam and Vizianagaram and produce value added products.

Firtash was among the people who had met then Chief Minister Y.S. Rajasekhar Reddy to discuss the project.

The controversial deal involved the same names who were also associated with other controversial deals and iron mining scandal of the YSR era.

Then minister for mining Sabita Indira Reddy and then managing cirector in the Department of Mining V.D. Rajagopal were among those who had visited Russia on the invitation of Firtash’s company for discussions.

Then minister for major industries Botsa Satyanarayana had also visited Russia as part of the delegation.

A memorandum of understanding was signed on April 18, 2006 by Secretary (Industries, Commerce & Mines) on behalf of the state government and P. Sunderalingam, a Sri Lankan, on behalf of Bothili. Subsequently an agreement was signed by Andhra Pradesh Mineral Development Corporation and Bothli on August 24, 2006. Corporation’s Chairman and Managing Director Rajagopal had signed it on behalf of the state government.

Now the FBI has accused Rao, Firtash, Sunderalingam and three others of international racketeering and conspiring to pay bribes to the state and central government officials in India to allow the mining of heavy metals including titanium.

According to the sources in the APMDC, officials had written six months back to the then Chief Minister N. Kiran Kumar Reddy to scrap the agreement as the foreign company had failed to meet its commitment to start the work on project despite lapse of six years time period. However, with the government not taking any such action, the agreement was still in place, though neither the central government granted the necessary permissions and clearances including environmental clearance for the project not any work had started on the ground.

Grabbing the opportunity to target the Congress party, Telugu Desam President N Chandrababu Naidu demanded a high level probe in the matter.

Naidu said he will write to the President of India, governor and Central Bureau of Investigation demanding a thorough investigation. “Congress leaders have brought shame to the country internationally,” he said alleging that the KVP Ramachandra Rao and YS Rajasekhar Reddy had demanded the kickbacks in the deal.

Lok Satta President Jayprakash Narayan also urged the CBI to work closely with the Federal Bureau of Investigation to bring out the truth.