A major housing scam involving the Rockcrete company is now under legal scrutiny, as a criminal case has been registered at Nunna Police Station in Vijayawada. The firm, reportedly linked to former YSRCP MLA Thopudurthi Prakash Reddy, is accused of abandoning large-scale housing projects meant for the poor, leaving thousands of beneficiaries in distress.
The controversy revolves around two housing layouts near Vijayawada. These include the Jagannanna Model Colony at Nunna and another layout at Pallathippa. Rockcrete had secured contracts to construct 3,000 houses under the government housing scheme. However, the company failed to complete the work, causing financial loss and hardship to beneficiaries.
Authorities revealed that the company halted construction midway across multiple sites. Many houses remained incomplete at various stages such as foundation, slab, and roofing levels. In several cases, even basic groundwork was left unfinished. As a result, families who were promised homes were left stranded.
The financial impact is significant. Officials estimate a loss of nearly ₹4 crore to the government. This loss occurred due to misuse and diversion of construction materials such as cement and steel, which were issued in phases. Investigations found that the materials were not properly utilized for the intended construction work.
The agreement between the housing department and Rockcrete initially fixed the construction cost per house at ₹1.80 lakh. Later, an additional ₹35,000 per unit was approved after the company expressed inability to execute the project within the original budget. These funds were arranged through self-help group loans and managed by housing authorities.
Despite these concessions, the company failed to deliver. Out of 3,000 houses, only a small fraction reached partial completion. Around 300 houses had only foundations, while very few progressed beyond the slab stage. None of the projects were fully completed.
The issue had been flagged earlier. Beneficiaries from areas such as Ramavarappadu, Enikepadu, and Prasadam Padu had filed complaints. However, no action was taken at that time. Recent developments indicate that district authorities conducted an internal inquiry, which confirmed large-scale irregularities.
Following this, the NTR district collector forwarded the findings to the Vijayawada Police Commissioner. After legal consultation, an FIR was finally registered. Housing officials also filed a fresh complaint, strengthening the case against the company.
This case highlights serious gaps in project monitoring and accountability during the previous administration.
