Lulu Mall land: What will happen in Vizag after cancellation in Vijayawada?
In March last year, the government decided to allot 13.43 acres of land belonging to Harbour Park, near RK Beach in Visakhapatnam, to Lulu International Shopping Mall. Orders were issued granting the land on a 99-year lease
The Andhra Pradesh government’s decision to allot prime land worth thousands of crores to the Lulu Group at throwaway prices had sparked a controversy. In this backdrop, the state government has now withdrawn its earlier decision to allot 4.15 acres of APSRTC land in the heart of Vijayawada to Lulu.
This has now triggered curiosity over what the government will do about the 13.43 acres already allotted to Lulu in Visakhapatnam (Vizag).
Also read: Lulu Mall in Vijayawada: Andhra govt cancels land allotment amid controversy
After a PIL was filed in the Andhra Pradesh High Court challenging the allotment in Vijayawada, the government informed the court that it had decided to revoke the decision.
Former minister Vadde Shobanadreeswara Rao and Vijayawada-based lawyer CH Venkateswara Rao filed the PIL in the High Court challenging the allotment of the Andhra Pradesh Road Transport Corporation land to Lulu Mall in Vijayawada. Leaders from YSRCP and Left parties also opposed the move.
Amid this, the state’s Advocate General Dammalapati Srinivas recently informed the High Court that the government had decided to cancel the allotment. This effectively marks a rollback of the Vijayawada RTC land deal.
Allotment to Lulu in Vishakhapatnam
In March last year, the government decided to allot 13.43 acres of land belonging to Harbour Park, near RK Beach in Visakhapatnam, to Lulu International Shopping Mall. Orders were issued granting the land on a 99-year lease.
Lulu proposed to construct a world-class mall spread over 13.5 lakh square feet on this site. The plan includes a children’s amusement park, food court, and an IMAX-equipped multiplex with nine screens.
Initially, in 2017, the then TDP government allotted these 13.43 acres in Visakhapatnam to Lulu. Later, the YSRCP government that came to power cancelled the allotment in 2023.
After returning to power in 2024, the Chandrababu Naidu-led government once again allotted the same land to Lulu in March last year on a 99-year lease. As per Lulu’s request, the government allowed the company to skip lease payments for the first three years. Thereafter, it fixed an annual lease of Rs 7.08 crore, with a 10 per cent increase every 10 years.
Lulu stated that it would invest Rs 1,066 crore in the project and generate employment for around 500 people.
PIL over Visakhapatnam land allotment
Advocate Paka Satyanarayana had filed a PIL in the High Court last year against the land allotment to Lulu in Visakhapatnam. During the hearing, the government earlier told the court that the matter was still under examination.
Compared to Vijayawada, land prices in Visakhapatnam are significantly higher. The allotment of over 13 acres of prime land near the beach to Lulu has been opposed by public organisations, Left parties, and YSRCP leaders.
However, despite stepping back in Vijayawada, the government has not made any announcement regarding the allotment in Visakhapatnam. This suggests that it has not changed its stance on the Visakhapatnam project. The High Court Bench has also indicated that it will review the broader policy under which such prime public land was allotted to Lulu.
There were also reports earlier that Andhra Pradesh Deputy Chief Minister Pawan Kalyan had expressed dissatisfaction over the allotment in Visakhapatnam, though he has remained silent since.
‘We expect a favourable judgment like Vijayawada case’
Former Union Power Secretary EAS Sarma said that the land allotted to Lulu in Visakhapatnam is also public property and worth thousands of crores.
“It cannot be handed over at such a nominal price. The Supreme Court has previously stated that land under local bodies should not be allotted to private entities. Just like Vijayawada, the government should take back the land given to Lulu in Visakhapatnam as well,” he told The Federal Andhra Pradesh.
“I have filed a PIL in the High Court regarding the land allotted to Lulu in Visakhapatnam. The court has directed the government to file a counter. It also ordered that the Vizag case be tagged along with the Vijayawada case.
Allotting land worth thousands of crores to Lulu at 99 paise without a bidding process violates rules. We are requesting the court to cancel the allotment. We expect a favourable judgment, similar to the Vijayawada case,” said Visakhapatnam-based lawyer Paka Satyanarayana.
(This article was originally published in The Federal Andhra Pradesh)
