The petitioners alleged that they were made to pay ₹2.5 lakh per acre as kickback to local MLA Rajini. One Prathipati Nagabhushanam moved the high court seeking directions to pay complete payment of the compensation promised in lieu of the land he parted with. He stated that the officials acquired about 40 acres of land at Pasumarru village under Chilakaluripet mandal for allotting house sites to the landless poor.
B Srinivasa Rao who argued for the farmers told the high court that as the farmers are already in distress by losing possession of lands without any compensation, they have agreed to the proposal under duress and gave promissory notes and cheques at the rate of 2.5 lakh per acre. Later, they have received only 31 lakh as compensation as against the promised 35 lakh. The high court directed the government pleader to get instructions from the officials concerned about action taken on the representations of the petitioners regarding balance payment of compensation.
The high court posted the matter for further hearing on November 25.