The boat accident was not due to the company’s negligence but rather because of a sand bunk in the river, said prime accused Kondal Rao. After the accident at Pavitra Sangamam, the investors of the River Boating company have gone into hiding. The owner of the company, Kondal Rao, spoke to TV9, and revealed that he had no investment in the company and was on the brink of financial ruin. He named his friends Seshagiri, Manoj, Gedela Srinivas and Sarathi as the investors in the boating business.
He also said that the company was registered in his name only because he was a local. He also revealed that he had no knowledge of the boating business and would in fact go and watch the boats to learn more about them. He said that he had spent Rs 50 lakhs to purchased four boats for the business and the fifth one, which capsized, was brought from Kakinada. He also revealed that all his boats had permits, but they had expired on November 3. He had already applied for the renewal of the permits, he said.