Andhra Pradesh Government Withdraws LuLu Group Land Allotment Amid Controversy

The Chandrababu Naidu government has decided to withdraw its earlier order allotting 4.15 acres of APSRTC land in Vijayawada to the LuLu Group for a shopping mall project.

The land, located at the old RTC bus stand in Governorpet, was allotted in July 2025 by the TDP-led NDA government. The LuLu Group planned to build a large shopping mall covering 2.23 lakh square feet.

The move triggered a sharp political row, with the opposition YSR Congress Party claiming the government was forced to reverse its decision because of sustained pressure from YSRCP leaders under the direction of YS Jagan Mohan Reddy.

YSRCP alleged that the TDP government tried to hand over valuable public land to a private company without transparency or open bidding. The party claimed the 4.15-acre RTC land in the centre of Vijayawada, worth several hundred crores, was being given away at a throwaway price. YSRCP also supported petitions in the High Court.

On April 9, the government informed the High Court that it would cancel the earlier allotment order and take back the land. Advocate General Dammalapati Srinivas told the court that formal cancellation orders would be issued soon.

The YSR Congress party has alleged that this land allocation was not an isolated case. YSRCP accused the TDP government of favouring the LuLu Group in other deals as well. It pointed to the allotment of 13.74 acres of beachside land in Visakhapatnam and the lease of the Mallavalli Mega Food Park.

YSRCP alleged that the Mallavalli Mega Food Park was given to the LuLu Group for only Rs 50 lakh a year for 66 years, while under the previous YSRCP government, the same facility had fetched Rs 1.92 crore a year with a 10 per cent increase every year. The party alleged that the rent was reduced by nearly four times and called it a "quid pro quo" deal and has alleged the government of treating public property as private wealth and accused it of trying to sell public assets cheaply to corporate groups.

The TDP government, however, rejected all the allegations. It said the land allotment was part of its policy to attract investment, create jobs and improve development in Andhra Pradesh. The government clarified that the LuLu projects in Vijayawada and Visakhapatnam were expected to create thousands of jobs and bring economic activity.

The government also said the decision to withdraw the allotment should not be seen as being against investment. According to the TDP government, the land was taken back only after considering legal issues and public concerns, and any future allotments would be made with greater transparency and scrutiny.