Why are Andhra Pradesh MP Kesineni Sivanath and brother Srinivas fighting over US-based Ursa Clusters’ investments?
Two siblings from two different political parties are on a war path over a company that is of interest to the two Telugu states— Andhra Pradesh and Telangana. Kesineni Srinivas or Nani, is a former MP of Vijayawada and a YSR Congress Party (YSRCP) leader. Kesineni Sivanath or Chinni is his younger brother, who is the current MP of Vijayawada and is part of the Telugu Desam Party (TDP).
Nani openly accused his younger brother of being a fraud and the latter retaliated by calling his elder brother a “psycho”. But why are brothers fighting over Ursa Clusters, a company that claims to have presence in the United States and India?
At the World Economic Forum (WEF) in Davos this year, Ursa Clusters signed an MoU (Memorandum of Understanding) with the Telangana government to establish a 100MW AI-powered data centre with a total and phased investment of Rs 5000 crore. In neighbouring Andhra Pradesh, Ursa Clusters' name cropped up as their proposed investment of Rs 5,700 crore in Vizag was cleared this month by the Andhra Pradesh State Investment Promotion Board.
A few days back, the Andhra Pradesh cabinet decided to allot lands to companies like TCS in lieu of investments and employment generation. TCS was allotted 21.1 acres at Rs 0.99 per acre. Ursa Clusters too was allotted land to an extent of 59 acres, with a market value of hundreds of crores, at subsidised rates. Ursa Clusters garnered attention and became a hotly discussed topic.
Media outlet The Wire conducted an in-depth investigation into the functioning of Ursa Clusters and found that the company was floated in the USA just months before they signed the MoU with Telangana. Its Indian subsidiary was incorporated by the Ministry of Corporate Affairs, again a few months before they got the nod from the Andhra Pradesh cabinet. The Wire found that the company’s offices in Hyderabad and California were merely residential units with no commercial or office setup. The report also highlighted that the company did not have any contact details listed online. The company too did not demonstrate any past history of large-scale business.
The report questioned the capabilities of Ursa to invest Rs 10,000 crore in two states and also the rationale behind the Andhra Pradesh government allotting lands worth hundreds of crores. Though the Andhra Pradesh government issued a Government Order (GO) allocating land for TCS, it did not issue any GO related to Ursa Clusters after the controversy broke out. As per the formal procedure, after an order is issued, the land is registered in the company’s name after it complies with the required guidelines. The YSRCP went to town criticising the TDP government alleging that it was a scam where kickbacks were routed using shell companies.
The management of Ursa has responded to media reports and issued a statement. They called the reports and allegations ‘misleading narratives’ and introduced themselves as a “global consortium of seasoned technology and infrastructure professionals.” Ursa also claimed that they have the required resources to raise the required capital for investments.
Amidst this, former MP and YSRCP leader, Kesineni Nani took to X (Twitter) alleging that an individual named Satish Abburi, who serves as a director in Ursa is a long-time associate and college mate of his younger brother and current Vijayawada MP and TDP leader, Kesineni Chinni. “This is nothing but a benami and Fraudulent scheme orchestrated by Vijayawada MP Kesineni Sivanath, using frontmen to gain control over prime public land for private profiteering,” he tweeted. He also said that Satish Abburi and Chinni were former business partners in a failed venture called 21 Century Investments which allegedly duper investors.
In a follow-up tweet, he also furnished proof to corroborate his allegation regarding the business tie between Ursa's director and his political foe, his younger brother. Kesineni Chinni responded by calling his brother a ‘psycho’ in his Facebook post and uploading documents to claim that his brother also did business with family members of Satish Abburi in the past. Will Ursa get the land as promised or will the government backtrack? It has to be seen how the TDP government responds to the issue and settles the dust.
India