Published Apr 09, 2026 | 3:31 PM ⚊ Updated Apr 09, 2026 | 3:31 PM
The government’s latest stand was conveyed in court. Credit: facebook.com/LuLuHypermarket
Synopsis: The Andhra Pradesh government has withdrawn its approval to allot 4.15 acres of APSRTC land in Vijayawada to LuLu International Shopping Malls after sustained protests and multiple PILs. Valued at hundreds of crores, the land was earlier marked for a 99-year lease. Public opposition citing transparency, legality, and public interest forced the rollback, hailed as a people’s victory.
In a clear U-turn under public pressure, the Andhra Pradesh government has withdrawn its in-principle nod to allot about 4.15 acres of prime APSRTC land at the old RTC bus stand in Governorpet, Vijayawada, to LuLu International Shopping Malls Pvt Ltd. The proposed plan was to build a shopping mall. Now, it’s off the table.
The rollback comes amid a flurry of public interest litigations (PILs) and sustained protests. The land in question sits in a prime commercial pocket. It belongs to the Andhra Pradesh State Road Transport Corporation (APSRTC).
Opponents peg its value at hundreds of crores. Earlier, the government had marked it for a 99-year lease under GO No. 137, in line with its industrial and tourism push.
The government’s latest stand was conveyed in court. Advocate General Dammalapati Srinivas informed the Andhra Pradesh High Court during a hearing on Wednesday, 8 April.
The writing on the wall was clear for quite some time now. In March, during hearings before a division bench led by Chief Justice Dheeraj Singh Thakur and Justice Challa Gunaranjan, the Advocate General had hinted at a rethink. He told the court he had oral instructions to revisit the allotment orders.
He also promised a detailed affidavit spelling out the government’s stand. The bench then adjourned the PILs for four weeks.
At the heart of the row are multiple PILs that questioned the deal’s legality. Petitioners include former minister Vadde Sobhanadreeswara Rao, advocate Ch Venkateswara Rao, and Paka Satyanarayana. They flagged a host of concerns.
Lack of transparency, lack of competitive bidding violation of Supreme Court norms on disposal of public land and a possible hit to RTC operations and small traders in the area.
On the ground, the pushback was very severe. RTC unions, the CPI(M), trader bodies, and civil society groups hit the streets and organised dharnas and protests. There were even warnings of bigger agitations. Their core argument was that valuable public land was being handed over cheap to the UAE-based LuLu Group. A public asset, they said, was at risk of turning into private gain.
In a statement, CPM state secretariat member Ch Babu Rao: “Withdrawal of RTC land allotment to LuLu Company is a victory for the people. The movement to protect government lands will continue.”
He said that the decision serves as a warning to the government against illegally handing over public lands to private companies in violation of rules. He demanded that the government should change its policy on allotment of lands to private companies.
