The Andhra Pradesh Chief Minister Chandrababu Naidu earlier had cancelled the bauxite supply agreement the previous government signed with the Anrak Aluminium Ltd (AAL), a joint venture of the Ras-al-Khaimah government and the Penna Group. At the time of annulment Chandrababu stated that “The deal is structured in way that it will not benefit tribal people in any manner and is in the interests of the joint venture company”.

AAL completed construction of its refinery at a cost of nearly Rs 7,000 crore at Rachapalli in Makavarapalem Mandal in Visakhapatnam district almost four years ago and also has secured approval for both an Aluminium complex and a bauxite mines. However, AAL did not give up despite the dissolution of GOs.

In order to get the factory started and also approvals for Bauxite mining, Penna Pratap Reddy tried to influence TDP MP. At one point of time he even paid rupees 50 crores as bribe to the Union minister. This deal could not materialize as Chandrababu reprimand both and maintained the status quo. Penna Pratap’s money is stuck with the minister and the company was anyway denied permissions.

As per GO MS number 44 issued on April 6,2016 by the industries and commerce department the AP government cancelled orders issued in GO MS number 222 (August 13, 2008), 289 (October 30, 2008) in which approval to the draft bauxite supply agreement was given to AAL.

Chandrababu during the invalidation also said, “The deal exposes the selfish interests of an individual as is evident from the investments made by the Penna group in Carmel Asia and Jagati Publications, the owners of Sakshi television and daily”