URSA Clusters comes under a cloud of suspicion after data centre agreements with Andhra, Telangana Former Vijayawada MP Kesineni Srinivas accused his brother and incumbent Lok Sabha member Kesineni Sivanath of being the mastermind behind ensuring the allotment of land for URSA Clusters in Visakhapatnam. Synopsis: Questions have been raised from several quarters about the legitimacy of Ursa Clusters Private Limited, after the company has signed agreements with the Telangana and Andhra Pradesh governments to set up data centres. Ursa Clusters Private Limited is a company that is making waves in both Telangana and Andhra Pradesh at the moment. The company, touted to be one that has been into data centre projects, has managed to get projects in both Telugu states. First, it was the Telangana Government, led by Chief Minister A Revanth Reddy, which signed a Memorandum of Understanding (MoU) with the US-based company at the World Economic Forum in January 2025. The company proposed setting up a 100 MW AI-powered data centre hub in Hyderabad with an investment of ₹5,000 crore. The company was registered in the US only three months prior. Later, the Andhra Pradesh government cleared its proposal for land allotment for setting up IT parks in Visakhapatnam. Related: How a two-month-old firm landed a multi-crore deal with Andhra govt Details of the company BRS spokesperson Manne Krishank said the company was a bogus one. He said on X: “There is no company ‘URSA Clusters.’ The Telangana MoU for Rs. 5000 crore investment and 60-acre land allotment in AP for the same company are bogus.” In another message, he said: “URSA Clusters was formed in 2024, Telangana signs MoU for Rs. 5000 crore in January. In April 2025, AP allots 60 acres. Hope this is not one more IMG Bharata fraud company in which both state governments are involved.” The company was incorporated in India under the Ministry of Corporate Affairs on 12 February 2025. The Ministry, in its certificate of incorporation, gave details of the company’s corporate ID, PAN number, and Tax Deduction and Collection Account Number (TAN). The address of the company was given as: URSA Clusters Pvt Limited, Flat No: 705, Ekta Basil Heights, Jubilee Garden, Kothaguda (KV Ranga Reddy), Serilingampally, Hyderabad – 500084. The company’s authorised capital was ₹10 lakh, and paid-up capital was ₹1 lakh with two directors — Satish Abburi and Kaushik Pendurthi. Now, the company is under the spotlight after the Andhra Pradesh cabinet cleared the proposal of the State Investment Promotion Board for the allotment of 3.5 acres of land at the IT Park in Visakhapatnam, and 56.36 acres in Kapuluppada in the same city. The company seemed to have given a commitment that it would invest ₹5,778 crore to set up an AI data centre. No one would have doubted the investment proposals but for the glaring fact that it was a new entrant into setting up data centres with very little experience in executing such huge projects. Claims fraud Former Vijayawada MP Kesineni Srinivas opened the lid on what he sees as a scam. He accused his brother and incumbent Lok Sabha member Kesineni Sivanath of being the mastermind behind ensuring the allotment of land for URSA Clusters in Visakhapatnam. In a message on X, he requested Chief Minister N Chandrababu Naidu to cancel the land allotment made to URSA Clusters. He said he was deeply concerned about the allotment of 60 acres to a newly floated company, Ursa Clusters Pvt Ltd, purportedly for setting up a data centre project valued at ₹5,778 crore. This includes 3.5 acres in the IT Park and a massive 56.36 acres at Kapuluppada. He said that it was a benami and fraudulent scheme orchestrated by Vijayawada MP Kesineni Sivanath, using frontmen to gain control over prime public land for private profiteering. Srinivas further said that Ursa Clusters Pvt Ltd was incorporated just before the land allotment, with no past experience, no credible background, and no visible means to execute such a high-capacity project. He said: “One of the directors, Abburi Satish, is not only a longtime associate and engineering college classmate of MP Sivanath but also his former business partner in the infamous 21st Century Investments & Properties Pvt Ltd, a company that collected crores from the public and closed down after cheating many innocent buyers.” Srinivas said it is widely believed that Sivanath himself is the hidden force behind Ursa. Using his influence as an MP and as President of the Andhra Cricket Association, he pushed the land deal through under the guise of investment. “Numerous reports in the media and among the public point to the MP’s deep involvement in sand, fly ash, gravel mining, operation of gambling dens, and real estate mafias, openly misusing the name of IT Minister Nara Lokesh and claiming that these illegal acts were being done on his behalf,” he said. Also Read: Andhra cabinet approves 21.66 acres of land allotment for TCS ‘Covert land-grabbing’ Srinivas said it was evident that this land allotment was not intended for genuine industrial development but was instead a covert land-grabbing exercise using government mechanisms for personal gain. “Allowing this would not only harm the public interest but also damage the credibility of your administration, which has always claimed to uphold clean and transparent governance.” The former MP sought an inquiry into the company’s ownership, source of funds, and political connections and demanded strict action against those misusing the Chief Minister’s leadership and the party’s name for corrupt purposes. Meanwhile, in an official statement, URSA CLUSTERS co-founder Satish Abburi asserted that they were well-equipped to handle multiple data centre projects and that they have strong backers with a fully feasible plan. He said URSA had secured financial backing to fully execute Phase I within 12 to 24 months with a clearly defined investment structure, including rigorous checks, balances, and oversight. “We are fully committed to executing the project on schedule, with clear accountability enforced through government-mandated checks and balances that ensure timely and transparent progress.” Explaining their current physical presence, he said they were operating in a lean mode during this approval phase, utilising interim facilities for practical considerations. “Our roadmap includes transitioning to permanent headquarters at the strategically appropriate milestone as we progress.” He said that URSA is a newly incorporated company and their team follows a pragmatic development sequence—secure land, establish power connectivity, build core infrastructure, then develop corporate headquarters. Satish Abburi maintained that they did not get the land for 99 paise per acre. “Our proposal was ₹1 crore for 3.5 acres and ₹50 lakh per acre for the remaining 56.5 acres.” He said, “Our core mission is to create high-quality jobs and drive economic growth in Andhra Pradesh and India through world-class data centre and AI infrastructure development.” (Edited by Muhammed Fazil.)