The Andhra Pradesh high court on Thursday directed the state government to present its decision regarding land allocation to the Lulu Group in Visakhapatnam.
The court bench, consisting of Chief Justice Dhiraj Singh Thakur and Justice Cheemalapati Ravi, adjourned the hearing of the Public Interest Litigation (PIL) to after the summer vacation.
The PIL was filed by Pakka Satyanarayana, who alleged that the state government was allotting 13.5 acres of land at a discounted price to Lulu Group for the establishment of a shopping mall.
Representing the petitioner, advocate Ashok Ram argued that the government was moving forward with the allotment based on proposals from the company’s chairman, without inviting tenders.
In response, the state's Special Government Pleader (SGP) S. Pranathi and the Revenue Department’s counsel K.M. Krishna Reddy informed the court that the proposal was still under review and that no final decision had been made yet.
The Lulu Group proposed to construct a world-class Lulu Hypermarket, a children's amusement park, a food court and an eight-screen Imax multiplex.
It made a request to allot the land on lease basis for a period of 99 years, provide a rent-free period of three years, increase of 10% in the rental once in every 10 years and other possible incentives.
The proposal of the Lulu Group was placed before the State Investment Promotion Board (SIPB) meeting held on March 13 and was given the approval.
The SIPB suggested transferring 13.43 acre of Harbour Park land in Visakhapatnam back to APIIC from VMRDA, to process further on the investment proposal.
