Private land was given to LuLu Group in Vizag by Govt?

The allocation of prime land to the LuLu Group for a proposed international-standard shopping mall in Visakhapatnam has once again sparked controversy, with allegations surfacing that the Andhra Pradesh government mistakenly allotted private land to the retail giant, assuming it was government-owned property.

The state government had recently revived the long-pending project by directing the Visakhapatnam Metropolitan Region Development Authority (VMRDA) to transfer 13.43 acres of Harbour Park land near RK Beach Road to the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) for the LuLu Group.

The project, initially proposed in 2017, includes a hypermarket, a children’s amusement park, a food court, and an eight-screen IMAX multiplex. However, recent claims suggest the land in question includes private properties, leading to accusations of administrative oversight and mismanagement.

Many are mocking the government’s handling of the situation, calling it a “comedy show” and questioning the government’s due diligence process. Critics, including YSR Congress Party (YSRCP) and Communist Party of India (Marxist) (CPI(M)) activists, have long opposed the allocation, alleging the land, valued at over Rs 2,000 crore, is being leased at a nominal price, violating Coastal Regulation Zone (CRZ) norms and public interest.

Private land!

The Andhra Pradesh High Court had previously issued notices to the state government in May 2025, following a Public Interest Litigation (PIL) filed by Paka Satyanarayana, who contended that the land was being allotted at an undervalued rate. The court sought counter-affidavits from the government, which clarified that no final decision had been made on the allotment.

Environmentalists and local residents, including members of the Visakhapatnam Apartment Residents’ Welfare Association (VARWA), have also raised concerns about potential environmental damage, increased traffic congestion, and security risks if the mall is constructed near RK Beach. Former UPSC chairman Prof. KS Chalam warned that such projects could lead to corporate overreach in the city’s governance.

The YSRCP, during its tenure, had canceled the project in 2019, alleging the land was undervalued at Rs 4 lakh per acre against its market value of over Rs 700 crore. The current NDA government, led by Chief Minister Chandrababu Naidu, has reinstated the project, citing its potential to boost employment and investment in the region.

APIIC has been tasked with evaluating the proposal and addressing any legal challenges, including ongoing court cases related to the land. However, the fresh controversy over the private land mix-up has intensified calls for transparency and accountability.

As the debate rages on, Vizag residents await clarity on whether the LuLu Group’s ambitious project will proceed or face further legal and public hurdles.