We report a facile one-pot synthesis of aqueously dispersible CdTe quantum dots (QDs) with tunable optical properties by using dual capping agents namely MPA and Citric acid. Optimum precursor ratio and pH > 8 at 80 degrees C facilitated particle size tunability and exceptional optical properties. QDs are similar to 3.7 nm as seen from HR-TEM image; highly-luminescent showing absolute quantum-yield up to 54% and bear good photostability. CdTe QDs are highly stable in water with large negative Zeta potential. Optimum ratio of Cd2+:MPA:TeO32-:NaBH4:citric acid was 1:2:0.2:3.2:5.2, respectively. The pH dependent nucleation and growth of QDs subsequently lead to quasi CdTe/CdS structure as indicated by XRD, FTIR and particle size analysis. QDs showed excitation independent emission with tunable peak width. QDs can be stored over 6 months at 4 degrees C without causing agglomeration. Interaction of QDs with Rhodamine-6G and plasmonic silver nanoparticles via resonance energy transfer (RET) imply their suitability for sensors and biomedical applications.