Rs 60 Crore Stamp Duty Evasion? Questions Raised Over AMR India, Sudhakara Infratech!
Wealth creation. This is a phrase that TDP chief and Andhra Pradesh Chief Minister Chandrababu Naidu repeatedly uses. But looking at the developments taking place in the Andhra Pradesh government, critics are questioning whether, instead of creating wealth for the state, the government appears to be working to create wealth for certain companies and a select group of contractors. There are widespread allegations that the companies and contractors selected by the government are being given benefits running into hundreds and even thousands of crores of rupees. Government sources say that those in power are receiving substantial returns in exchange for these benefits. Even among TDP leaders, there is a view that the trend within the Andhra Pradesh government has completely changed compared to the past. On the one hand, the Andhra Pradesh government is now deeply caught in a debt trap. The government is in a situation where it cannot move forward without taking loans on a regular basis. Despite this, the Chandrababu government’s approach toward certain companies is coming under severe criticism and raising several suspicions. This episode is being cited as a direct example.
The companies AMR India and Sudhakara Infratech, which were selected as Seigniorage Collection Contractors (SCCs) in six districts of Andhra Pradesh, allegedly violated tender conditions and evaded stamp duty amounting to Rs 60 crore. However, state government agencies are showing little interest in recovering the amount and appear to be avoiding the issue, giving the impression that they are acting in favour of these companies. It is alleged that the two companies have also been unduly benefiting by delaying payment of royalty, including seigniorage, to the government for months. Under the tender conditions, the companies are required to make advance payments at the beginning of every month. Government sources have also revealed discrepancies in statutory payments, including Rs 600 crore towards the District Mineral Fund (DMF), nearly Rs 200 crore in Goods and Services Tax (GST), and another Rs 20 crore in Tax Collected at Source (TCS).
At a time when Chief Minister Chandrababu Naidu has been stressing the need to plug every possible leakage and exercise caution regarding revenue flowing into the government exchequer, there is also a discussion within government circles that some ministers and IAS officers appear to be acting contrary to those instructions. While the Chief Minister has repeatedly directed officials to explore additional revenue sources for the government exchequer and take all necessary steps to recover pending dues, the manner in which M.K. Meena, Principal Secretary of the Mines and Geology Department, has handled the matter has become a subject of discussion. While awarding the Seigniorage Collection Contracts, on September 10, 2025, the Director of Mines and Geology, citing the tender conditions, instructed the District Mines and Geology Officers to enter into agreements with the selected Seigniorage Collection Contractors only after fully collecting the required stamp duty. However, the district officials entered into the agreements on October 8, 2025, without collecting the stamp duty. They also made no attempt to approach the District Registrar, Stamps and Registration authorities to ascertain the actual amount of stamp duty that had to be collected from the contractors during that one-month period.
The District Registrars, who appear to have been acting in collusion with the contractors, ignored the letters sent by the Mines officials. It was only after some people raised questions under the RTI Act regarding the delay in collecting the stamp duty that the District Registrars responded in August 2026 and recommended the amounts of stamp duty to be collected from the contractors. The Mines officials, too, appear to have washed their hands of the matter by merely writing letters to the contractors asking them to make the payments. So far, not a single rupee has been collected from the Seigniorage Collection Contractors towards stamp duty. In another serious violation of the tender conditions, the SCCs are required to pay the seigniorage amount in advance at the beginning of every month and recover the same amount from mining contractors during that month. However, these two companies were allegedly allowed to retain the seigniorage amounts collected from mining owners for several months.
For example, according to Demand Notice No. 1306/SCC-VSP/2025, dated August 13, 2026, AMR India did not make the first instalment payment until January 5 this year, even two months after being awarded the contract. Even subsequently, the company made payments at its convenience, ignoring the tender conditions. “Of the Rs 158 crore payable by AMR India in Visakhapatnam, the company paid only Rs 80 crore. The department adjusted another Rs 80 crore towards seigniorage fees relating to material used in government works. A comprehensive inquiry should be conducted into the claims relating to government works because many of the claims are bogus,” government sources said. Some officials allege that this concession was provided to benefit private companies. At the same time, Mines Department sources allege that while these seigniorage collection companies officially collect a certain amount, they are also making huge amounts of unofficial collections and making monthly payments to senior political leaders and officials. Some officials also allege that, in the case of certain companies, the instructions that Chief Minister Chandrababu Naidu gives publicly are one thing, while the directions conveyed unofficially are entirely different.
