Lulu Group’s Land Feast
- Visakhapatnam: The government leased 13.74 acres of prime land near RK Beach, valued at Rs. 679.50 crore, to Lulu Group for 99 years at a paltry Rs. 1.50 per square foot per month—far below the market rate of Rs. 40-50. No rent is charged for the first three years, with only a 10% rent increase every decade. This land, meant for a Rs. 1,066 crore shopping mall, was previously reclaimed by the VMRDA under the former government but swiftly reassigned to Lulu via APIIC after the coalition took power.
- Vijayawada: Lulu secured 4.15 acres of APSRTC’s old bus stand land in Governorpet, worth Rs. 600 crore, for a mere Rs. 156 crore investment in a G+3 shopping mall spanning 2.32 lakh square feet. Leased for 99 years, APSRTC is to be compensated with alternative land elsewhere.
- Mallavalli Mega Food Park: The central food processing unit was also handed over to Lulu, further expanding its portfolio.
Jana Sena MP’s Firm Grabs Cheap Land
- Mallavalli: Avisha Foods, owned by Jana Sena MP Balashouri’s son Anudeep Vallabhaneni, was allotted 115.65 acres worth Rs. 104 crore for just Rs. 19.08 crore. Priced at Rs. 16.5 lakh per acre against a market rate of Rs. 90 lakh, the land will host a food processing unit (13.85 acres) and a 500 KLPD bioethanol unit (83.50 acres), raising questions about favoritism.
Ursa’s Rs. 3,000 Crore Land Scandal
- Visakhapatnam: On April 15, 2025, a cabinet meeting approved allocating 60 acres of prime land, valued at Rs. 3,000 crore, to Ursa Cluster, a company linked to TDP leaders’ relatives. With only Rs. 10 lakh in capital, Ursa received this allocation just two months after its formation. The deal, exposed on April 19, 2025, triggered public outrage, but the government pressed on with similar allocations.
Real Estate Giants Reap Benefits
- Visakhapatnam: Real estate firms Satva, Kapil Group, and ANSR were allotted land worth over Rs. 3,000 crore without auctions. Satva secured 30 acres in Madhurawada IT Hills at a subsidized Rs. 1.5 crore per acre, despite a market rate of Rs. 50 crore, resulting in a Rs. 1,455 crore loss to the state. Meanwhile, IT firm Phenom People paid Rs. 4.5 crore per acre for similar land, highlighting stark disparities in pricing.
- Subsidies Galore: Satva also received incentives under the AP IT and GCC Policy 4.0, including investment subsidies, power rebates, and SGST exemptions, despite plans to lease the developed IT park to other firms rather than operate as an IT company.
Pawan Kalyan’s Associate Scores Big
- Orvakal, Kurnool: People Tech, linked to Pawan Kalyan’s film production partner TG Vishwaprasad, was allocated 1,200 acres worth billions for a mobility park at Rs. 15-16 lakh per acre, against a market rate of Rs. 80 lakh. Doubts persist about the company’s ability to invest the promised Rs. 2,100 crore.
Other Controversial Allocations
- Naidupeta SEZ: Premier Energies Ltd. received 106.6 acres at Rs. 60 lakh per acre for a solar PV cell unit, alongside Rs. 1,573 crore in incentives for a project employing just 1,500 people.
- Madakasira: Media Matrix Worldwide Ltd. got 329 acres at Rs. 7 lakh per acre for a Rs. 1,197 crore defense manufacturing unit, despite APIIC acquiring the land at Rs. 21.95 lakh per acre, incurring a Rs. 49.18 crore loss. An additional 671 acres were approved for the second phase.
- Amaravati & Tirupati (2017): Private firms like Karvy Data Management (16.42 acres at Rs. 9.03 crore, worth Rs. 67.32 crore) and Reliance Prolific Traders (175 acres at Rs. 20 lakh per acre) received land at nominal rates, while public sector entities paid higher lease rates.
- Srikakulam: VSR Group was allotted 22.45 acres at Rs. 11.62 lakh per acre for a brick unit, far below market value.
- Rambilli & Others: Laras Labs got 531.77 acres at Rs. 30 lakh per acre for a Rs. 5,374 crore pharma unit, and Brandix India Apparel’s 695.35-acre lease was extended for 25 years from July 2031.
Pawan Kalyan’s Land deal
- Kaja: Pawan Kalyan allegedly purchased 2.4 acres near the Inner Ring Road from the Lingamaneni family at Rs. 8 lakh per acre, exempted from land pooling, raising suspicions of favoritism tied to the coalition’s influence.
Public Outrage
The coalition government orchestrated a systematic land grab, bypassing competitive bidding and transparency to favor allies. The lack of auctions, coupled with subsidies and low lease rates, is seen as a mechanism to enrich cronies while generating massive commissions. With no government stake in these projects, the public is left questioning the loss of valuable assets. Despite widespread protests, the government continues its land allocation spree, undeterred.
