Four BRS MLAs reacted strongly to the allegations against Rama Rao after police and the Excise Department searched the farmhouse of his brother-in-law Raj Pakala.
They claimed that Raja Pakala had hosted a party for his family members at his house. They denied that KTR or his wife were present at the party.
MLAs K. P. Vivekanand, Dr K. Sanjay, G. Srinivas Yadav and Satish Reddy addressed a press conference to condemn the allegations.
They termed the allegations a part of the "government's attempt to divert people's attention from its failure to honour the poll promises".
The BRS leaders said the Congress government was trying to "defame" KTR and "mentally harass" him.
They alleged that the ruling Congress was unable to digest the "popularity" of KTR among people.
They also claimed that Chief Minister Reddy was becoming unpopular.
"The Chief Minister was making personal allegations against the BRS working president out of jealousy. KTR phobia has gripped Revanth Reddy," they said.
The BRS MLAs said police and the Excise Department searched Raja Pakala's house without any search warrant and harassed his family members. They alleged that the officials acted whimsically.
According to them, Raja Pakala hosted the party as he recently occupied the new house. They asked if a person couldn't organise a party at his house and warned that once BRS comes to power it would not leave the officials involved, even if they would retire.
They said a BRS MLA was recently implicated in a false case when he was returning from a private party.
The BRS MLAs also remarked that Revanth Reddy's friend and Union Minister of State for Home Bandi Sanjay reacted immediately to the incident.
They alleged that Revanth Reddy made Bandi Sanjay and BJP MP Raghunandan Rao speak and termed it "match-fixing".