Hyderabad: Serious allegations of corruption and black-marketing have surfaced in the implementation of the Telangana government’s auto-rickshaw distribution scheme, with beneficiaries accusing three prominent automobile dealers in Hyderabad of charging exorbitant premiums alleges MBT leader Amjed Ullah Khan.

The Telangana government, in its order released in June, sanctioned 65,000 new auto-rickshaws, including 20,000 electric, 10,000 CNG, 10,000 LPG, and 25,000 retrofitted autos for economically disadvantaged drivers. The initiative required applicants to apply online within three months, with selected beneficiaries directed to purchase autos from authorized Automobile dealers at fixed prices.

Allegations against dealers

However, multiple complaints have emerged against three Hyderabad-based dealers based in Saifabad, Erragadda, and Kachiguda. “They are charging Rs 35,000 to 40,000 more than the government-fixed rates (Rs 2,36,000 for LPG, Rs 2,47,000 for CNG) without providing receipts. Further, it is forcing the buyers to opt for financing through their preferred lenders at higher interest rates, even if beneficiaries wish to pay the full amount upfront, and preventing other district-based automobile dealers from selling autos at lower prices, creating a monopoly,” alleges Amjed Ullah Khan, spokesman of MBT.

Further Amjed Ullah Khan, Spokesman of MBT, who has been advocating for affected auto drivers, stated, "Nearly 4,000 autos have already been sold illegally with excess charges. If this continues, dealers will exploit 40,000 more beneficiaries." Many drivers reported that district dealers were willing to sell autos ₹10,000–20,000 cheaper, but Hyderabad-based dealers pressured them into refusing sales.

Speaking about the issues, Khan said, "I, along with these poor auto drivers, met K Surendra Mohan, IAS Transport Commissioner, who, after listening to us, asked us to meet C Ramesh (Jt. Commissioner Transport). We all met him and explained to him as well and requested him to control this black marketing. In almost seven days, the black marketing has not stopped.”

Khan has submitted multiple representations urging Chief Minister Anumula Revanth Reddy to intervene, demanding an immediate crackdown on black marketing, action against corrupt officials involved, and fair access to autos across all district dealers.