Is the flagship project of Andhra Pradesh government, AP Fibernet, a multi crore scam? The project is creating a political storm after main opposition YSR Congress has alleged Heritage Group's link, with the project, a company owned by Chief Minister N. Chandrababu Naidu's family.

The Andhra Pradesh government announced the prestigious Fiber grid project aiming to connecting every household & provide cable television, phone and high speed internet at low cost.

As per the website of AP State Fibernet Limited (APSFL) formed under the Companies Act , 2013 in the month of October,2015 and is fully owned entity of the Government of Andhra Pradesh "AP Fiber Grid can be utilized by the Internet Service Providers (ISPs) and Telecom Companies (Telcos) etc and can provide triple play - Cable TV, high-speed broadband and Telecom services to the users.

The documents accessed by India Today show that the Rs 320.88 crore project was allocated to Hyderabad based listed company Tera Software Limited, by Infrastructure Corporation of Andhra Pradesh Limited (INCAP). But, Andhra Pradesh government's undertaking shows the company was black-listed for a period of one year by the MD of INCAP/ APTS on May 11, 2015 for non compliance of EPOS and barred from participating in any APTS tenders.

But for reason unknown, within couple of months of its getting blacklisted, the company was not only removed from the black list but also awarded a critical project. The government issued an order (GO No 10) on August 26, 2015, appointing Hari Krishna Prasad Vemuru to the Tender Evaluation Committee for the Fiber grid Project. Interestingly Vemuru Harikrishna who is currently Managing Director at Netindia(P)Ltd was a Director in Tera Cloud Media Limited, which was floated by the promotes of Tera Software, which eventually got the fiber project.

The documents accessed by India Today also shows that Tera software directors were or are Directors in the firms which are linked to the Naidu's family owned Heritage group. Chandrababu Naidu's wife N. Bhuvaneswari and his daughter in law Nara Brahmani (wife of Chandrababu naidu's son Lokesh, who is also information and technology minister in his government) are directors in the Heritage Foods Limited. Before becoming a minister in his father's cabinet this year, Lokesh too was a director in the company.

Document also shows that Hari Krishna Prasad Vemuru also been board director of Seethepalli Gas Power Private Ltd along with Rajesh Kolaru, who served as director of many boards related to Heritage. Rajesh Kolaru along with Devineni Seetaramaiah who happened to be the Director of Tera Software Ltd till September 30, 2014 is also on the boards of Heritage Fin lease as their director where Chandrababu Naidu's wife N. Bhuvaneswari and his daughter in law N. Brahmani are directors.

Now opposition YSR Congress party and Congress has asked an investigation on the contract allotment process alleging a scam and demanded resignation of the chief minister N. Chandrababu Naidu.

"A case of EVM theft was registered against Hari Krishna Prasad Vemuru and even he was arrested but he was appointed by the government and contract went to Tera soft. The directors of Tera soft and Heritage are linked and everyone knows that Heritage is a Chandrababu Naidu company and the how company share gone up after he took over the government. It's a 400-500 crore scam. We are requesting central government to take initiative and order investigation into this." said Srikanth Reddy, MLA of YSR congress party.

However, Speaking to India Today, Hari Krishna Prasad Vemuru said, "All the allegations are false and baseless. I left Tera Software way back in 2010 and now only associated with Netindia(P)Ltd which is nowhere connected with APFibernet project. After Chandrababu Naidu took over as chief minister in 2014, I got associated with the project as a technical advisor and worked as consultant. The allegation of corruption is of mollified intention as the project is not only acclaimed by government of India but worldwide."

Heritage Foods Ltd has also denied the entire allegation and termed it politically motivated. M. Sambasiva Rao President, Heritage Foods said "I have nothing to say on all these allegations as we are no where associated with it and has no base."