Andhra Pradesh HC issues notices to state government on land allotment to LuLu Group, ET RealEstate
VIJAYAWADA: The high court on Wednesday issued notices to the state govt to file counter affidavits on land allotments to LuLu Group and the decision to raise Rs 9,000 crore through non-convertible debentures in two separate PIL petitions.
One Paka Satyanarayna moved the PIL, contending that the state govt is about to allot lands to LuLu Group at a nominal price for setting up a shopping mall in Visakhapatnam. Arguing on his behalf, Ashok Ram said the state govt earlier allotted land to the same company and subsequently cancelled the allotment. Again, the govt is planning to allot 13.83 acres of land to LuLu.
Special govt pleader, K M Krishna Reddy, told the high court that land allotment to LuLu Group is under consideration by the state govt, but a final decision is yet to be taken on whether to give the land as requested. Considering the arguments, the court directed the state govt to present the decision taken on land allotment before it and posted the matter for further hearing after summer vacation.
In another PIL filed by YSRCP MLA Lella Appi Reddy, challenging the issuance of NCDs to raise funds, the high court observed that it is a policy decision of the govt. The court noted that funds are being raised for the development of new projects.
Arguing on behalf of the petitioner, senior counsel P Veera Reddy said if APMDC fails to repay the money, those who purchased the bonds could take the money from the consolidated fund of the govt by obtaining permission from RBI. This arrangement is illegal and violates constitutional provisions, he argued.
Considering the submissions, the high court issued notices to the state govt, directing it to file counter affidavits. The court further clarified that it is not stalling the process of issuing NCDs and said the govt can continue with the process. The matter was posted for further hearing after the summer vacation.
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