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Andhra Cabinet Cancels 'Unethical' Land Allocation to Chandrababu Naidu's Relatives

State Information and Public Relations Minister Perni Venkatramiah said the Jagan Mohan Reddy-led government will cancel the orders issued by the previous Telugu Desam Party (TDP) government in which 498.93 acres was allocated to Naidu’s kin at Jayantipuram village in Jaggaiahpet mandal.

Syed Ahmed | News18.com

Updated:October 30, 2019, 9:34 PM IST
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Andhra Cabinet Cancels 'Unethical' Land Allocation to Chandrababu Naidu's Relatives
File photo of Andhra Pradesh Chief Minister YS Jagan Mohan Reddy.

Amaravati: The Andhra Pradesh government has decided to cancel two major land allocations done by the previous government led by Chandrababu Naidu, describing the earlier decision as “unethical”.

The decision was taken at a Cabinet meet here on Wednesday.

State Information and Public Relations Minister Perni Venkatramiah said the Jagan Mohan Reddy-led government will cancel the orders issued by the previous Telugu Desam Party (TDP) government in which 498.93 acres was allocated to a fertiliser company owned by Naidu’s kin at Jayantipuram village in Jaggaiahpet mandal.

The previous TDP government had in July 2015 allotted the land to VBC Fertilisers owned by late TDP leader MVVS Murthy, a close relative of the party supremo and also actor Nandamuri Balakrishna.

Not only was the land given away at a throwaway price but all rules were flouted and it was brought into the capital region to jack up the price several fold, immensely benefitting the allottee, the Cabinet note said.

Setting up a chemical factory in the area would endanger the health of the local people. Hence, the allotment has been cancelled, the note added.

The government also cancelled an earlier order sanctioning 13.83 acres of prime land to Indian multinational Lulu group for the construction of an international convention centre in Visakhapatnam. While the market value of the land was Rs 50 crore, it was allocated at a meagre cost of Rs 4 lakh.

Land that is worth Rs 50 crore an acre was given away at a measly lease of Rs 4.51 lakh per month. Had that Rs 50 crore been deposited in a bank, it would have fetched Rs 2.5 crore as interest alone, it said in a note.

The project was proposed at a cost of over Rs 2,200 crore, which includes exhibition and meeting halls, parking places, five star hotel and retail mall in Public Private Partnership mode and was supposed to be completed in three years.

It was proposed under the Tourism Mission undertaken by the previous government which had chosen the Lulu group as the developer in July 2017 and allotted the land, including 3.4 acres belonging to a private firm.

The ruling YSR Congress, then in opposition, had strongly opposed the deal.

The cabinet note said the Chandrababu government had also taken 3.4 acres from a private entity and unjustifiably gave it more costly land as alternative in the heart of Visakhapatnam.

The TDP government grossly violated clear guidelines of the Central Vigilance Commission in allotting land to Lulu group though it was the sole bidder, it alleged. Accordingly, the Cabinet decided to cancel the allotment, the note said.

The state government has also set up a panel to oversee the cleaning of canals in Krishna and Godavari rivers – the body will be headed by Reddy as chairman.

The government has decided to double the salaries of sanitary workers in all hospitals to Rs 16,000.

(With inputs from PTI)

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