Fact Check: Andhrajyothy’s report on Jagan’s government mortgaging Secretariat buildings to HDFC bank for Rs 370 crore is False

Ahead of the Assembly polls, an article by the Telugu daily Andhrajyothy has sparked controversy in Andhra Pradesh. The report alleges that the YS Jagan Mohan Reddy-led government secured a loan of Rs 370 crore from HDFC Bank by pledging the state secretariat buildings in Amaravati as collateral. Initially, the government reportedly approached ICICI Bank for the loan, but faced rejection. Subsequently, they turned to HDFC Bank, which agreed to provide half of the total construction cost as loan against the mortgaged secretariat buildings.

Former Andhra Pradesh Chief Minister and TDP Chief N. Chandrababu Naidu, along with other opposition leaders, soon criticized Chief Minister Jagan Reddy and the ruling YSRCP for reportedly mortgaging the Secretariat.

In a post on X, Naidu expressed his disappointment, stating, "It's truly shameful for the state. What a disgrace, Jagan Reddy! Do you understand the implications of mortgaging the State Secretariat, the nerve center of government administration, for ₹370 crores? By doing so, you've not only pledged the buildings but also the dignity of the Telugu people. This action has tarnished the esteemed reputation of Andhra Pradesh! It's time for the people to reflect on what we're losing under this incompetent, arrogant, and destructive regime!"

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Fact Check:

The claim is false.

According to a report in The New Indian Express dated March 4, 2024, AP Minister for Water Resources and YSRCP leader Ambati Rambabu dismissed the allegations made by Naidu, calling them the "imagination of TDP friendly media." Rambabu stated, "It is purely an attempt to divert attention and project as if something grave is happening, when no such thing has occurred in reality. The people are well aware of such tactics of TDP and will not believe in such false propaganda. After the fourth Siddham meeting of the YSRC, the TDP will be pushed into the oblivion in Andhra Pradesh."

According to a report from Telugu Global dated March 4, 2024, the Andhra Pradesh Capital Region Development Authority (AP CRDA) has denied the assertion that the government has pledged the Secretariat buildings to HDFC Bank.

The APCRDA also issued a statement on their X handle, accusing Andhrajyothy of spreading false information regarding the mortgaging of Secretariat buildings.

According to a report from Sakshi published on March 5, 2024, the HDFC Bank has refuted the news regarding the State Secretariat buildings being utilized as collateral for a loan of Rs 370 crore. Responding to numerous posts concerning the alleged mortgage of Andhra Pradesh Secretariat buildings, a spokesperson from HDFC Bank stated, "This refers to media stories stating that the Government of Andhra Pradesh has mortgaged the State Government Secretariat building with HDFC Bank for availing a loan of Rs 370 Crore. We would like to state on record that this information is totally inaccurate and misleading. We request you to take note and carry a clarification on the news."

The Andhra Pradesh government Fact Check unit also refuted the news, stating that it is fake. In a post dated March 5, 2024, it mentioned, "The news published in Andhrajyothy daily on March 3, 2024 with the title 'Thakattulo Sachiwalayam' is completely untrue. HDFC Bank itself denied this story.”

“The news in Telugu daily Andhrajyothy on March 3 stating that the government has taken a loan of ₹370 crore from HDFC Bank by pledging the Secretariat buildings is completely untrue. It tends to mislead people. We condemn this," said a spokesperson of HDFC Bank. .Additionally, despite denials from concerned parties, Andhrajyothy has not removed the story from their website. Venkat Krishna, senior editor with ABN, confirmed that they stand by their story.

Despite the APCRDA and HDFC Bank denying Andhrajyothy's report, the media outlet said they stand by their story.