The ACB registered a case of cheating and forgery against Ramoji Rao and son Ch Kiran. The case related to the land allotment in Survey No 52 of Resapuvanipalem village in Visakhapatnam to Ramoji Rao in lieu of land given to the government.

The land was given to Ramoji Rao by the government after he had surrendered a portion of the land in the premises of Eenadu office at Seethammadhara in Visakahapatnam. However, the owner of the land MAEKK Varma filed a case in a local court, alleging that Ramoji Rao misrepresented to the government that he was the owner of the land, and fraudulently received another piece of land offered in lieu of the surrender.

Even as the case was still pending in a local court, Varma later filed a petition in the special court under Prevention of Corruption Act, against Ch Ramoji Rao, Ushodaya Enterprises represented by Ch Kiran, former Vizag Collector and present Vigilance Commissioner, SV Prasad and retired bureaucrat KV Rao and another former collector of Vizag.

Varma petitioned that Ramoji Rao and Ch Kiran conspired with the then collectors of Vizag SV Prasad in 1985 and KV Rao in 1975 respectively and got 872 sq.mts of land allotted in Survey No 52 of Resapuvanipalem. Varma gave an extent of 2.78 acres to Ramoji on lease for 33 years in 1974, which expired in 2007. The Municipal Corporation acquired seven cents of land in 1985.

According to the complainant, he gave his land on lease to Ramoji Rao to house his newspaper, but he had misrepresented to the authorities and tried to to grab a piece of property that was given to him in lieu of the land he lost to road widening there.