- Land swap approved by TTD board moved Oberoi Resort project near Tirumala in 2025
- Original 20-acre allotment to Mumtaz Hotels in 2021 sparked protests over religious concerns
- TTD requested cancellation of original allotment to protect sanctity of pilgrimage area
In politically polarised Andhra Pradesh, the biggest criticism against the main rival political parties has been that succeeding governments from a rival party reverses the decisions taken by the previous government, putting corporates and stakeholders in a fix.
This time the Chandrababu Naidu government is facing criticism for not going ahead and cancelling a commitment made by his predecessor YS Jaganmohan Reedy.
At the heart of the issue is a long-standing land dispute over a proposed Oberoi Hotels Resort near Tirumala.
The Andhra Pradesh government led by Mr Naidu facilitated a land swap to accommodate the project while respecting religious sentiments.
The move, the government claims, secures a Rs 250 crore investment for the state.
The issue dates back to 1999, when 50 acres of land in Peruru village, Tirupati rural, was originally designated for the tourism department to develop a visitors' zone for pilgrims.
In November 2021, the then YSR Congress Party government allotted 20 acres of this land to a Special Purpose Vehicle of the Oberoi Group, named Mumtaz Hotels Ltd., for a luxury resort.
This specific allotment sparked widespread protests from various religious groups and devotees.
The name of the SPV -- "Mumtaz Hotels" -- was cited by protestors as a major point of contention, as they argued that a project with such a name was inappropriate for a holy land near the sacred abode of Lord Venkateswara.
The Tirumala Tirupati Devasthanams board, in a resolution dated November 18, 2024, formally requested the government to cancel the allotment. The TTD's resolution, No. 102, emphasised the need to preserve the sanctity and spirituality of the region and requested that the land be used only for purposes aligned with pilgrim welfare.
After assuming office, Chief Minister N. Chandrababu Naidu instructed the TTD to take back the original land and identify an alternative parcel. This land swap mechanism was approved by the TTD board in July 2025.
The new location, an alternate 20-acre parcel, is situated approximately two to three km from the previous site.
Following the TTD's approval, the government formally cancelled the original allotment to Mumtaz Hotels on August 7, 2025, via a new government order.
To finalise the new arrangement, the alternate land was acquired by the Tourism Department and is now slated for allotment to the Oberoi Group. The entire process was approved by the State Investment Promotion Committee in a meeting held on August 22, 2025.
While TDP framed the land swap as a successful resolution that protects both investor interests and religious sentiments, the YSR Congress has criticised the move.
A senior YSRCP leader and former TTD chairman, B Karunakar Reddy, has accused the Naidu government of "conspiring" to hand over valuable TTD property.
Mr Reddy alleges that the land swap leads to a significant financial loss for the TTD, claiming that the prime land near the temple was exchanged for a lower-value rural plot.
The TDP has dismissed these claims as a "false narrative" aimed at deterring investors. TDP spokesperson Jyothsna Tirunagari pointed out that the original allotment was made by the previous YSRCP government in 2021 and that the current government's action was a response to the TTD's request and public sentiment.
The ruling party argues that by implementing the land swap, the Naidu-led government has retained a significant investment from a major luxury hotel brand, Oberoi Hotels, while also addressing a politically and religiously sensitive issue that had been a point of contention for years.