Andhra Pradesh Withdraws 4.15-Acre LuLu Group Land Allotment In Vijayawada
Andhra Pradesh withdraws Vijayawada land allotment to LuLu Group amid controversy and political allegations.
The Andhra Pradesh government has withdrawn its earlier decision to allot 4.15 acres of APSRTC land in Vijayawada to the LuLu Group International, amid a political controversy and legal scrutiny surrounding the proposed shopping mall project. The land, located at the old RTC bus stand in Governorpet, was originally allotted in July 2025 for a large commercial development.
The decision was taken by the Chandrababu Naidu-led administration, which had planned to lease the prime urban land to LuLu Group for constructing a shopping mall spanning approximately 2.23 lakh square feet. However, the move quickly triggered political backlash, with opposition parties alleging lack of transparency in the allotment process.
The opposition YSR Congress Party accused the government of bypassing open bidding procedures and undervaluing high-value public land reportedly worth several hundred crores of rupees. The party also alleged that sustained political pressure led to the reversal of the decision and supported petitions filed in the High Court challenging the allotment.
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On April 9, the state government informed the High Court that it would cancel the earlier order and formally reclaim the land. According to Advocate General Dammalapati Srinivas, official cancellation orders will be issued shortly. The government’s decision has effectively halted the proposed retail development project at the site.
The YSR Congress Party further alleged that similar preferential treatment was extended to LuLu Group in other projects, including land allotments in Visakhapatnam and lease arrangements at the Mallavalli Mega Food Park. The party claimed these deals reflected a significant reduction in rental values compared to previous agreements under its own administration, calling them instances of “quid pro quo” arrangements.
Responding to the allegations, the Telugu Desam Party-led government defended its position, stating that the allotment was intended to attract investment, generate employment, and boost economic growth in the state. It also clarified that the withdrawal was based on legal considerations and public feedback, and stressed that future land allocations would follow stricter transparency norms.
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