Vmrda Plans Auction Of 13-acre Prime Land Taken From Lulu Group In Vizag City, ET RealEstate

September 6, 2023

<p>Representative Image</p>
Representative Image

VISAKHAPATNAM: A 13.59-acre prime land located very next to the RK Beach area in Visakhapatnam city, which was once allocated to the UAE-based multinational conglomerate LuLu Group, is likely to go under the hammer soon.

The land has been recently allocated to the Visakhapatnam Metropolitan Region Development Authority (VMRDA).

The urban development authority is planning to initiate the sale proceedings, which is expected to fetch amount running into hundreds of crores of rupees.

The LuLu group was supposed to invest ₹2,200 crore to build an international convention centre, shopping mall, and a five-star hotel with a potential of creating employment for 7,000 people. The then chief minister N Chandrababu Naidu laid a foundation stone for the same on this 13.59-acre property in 2018.

But with the changing of the guard in the 2019 elections, the land allocated to the LuLu group was cancelled by the YSRCP government. The government in 2019 defended its decision by claiming that the land, which had a market value of ₹50 crore per acre, was “unethically” allocated by the TDP government at a meagre ₹4 lakh per acre. Following the revoking of the land, LuLu group issued a public statement that they will not invest in any new projects in Andhra Pradesh.

Cut to 2021, the state government issued a notification for the outright sale of this 13.6-acre land pocket through the National Buildings Construction Corporation (NBCC). The reserve price of this land piece was fixed at an astronomical ₹1,452 crore or nearly ₹107 crore per acre. The property, having road access from three sides, has good connectivity with other parts of the city through well connected roads. However, the sale did not happen due to varied reasons.

Visakhapatnam district collector and the VMRDA metropolitan commissioner Dr A Mallikarjuna said that the land has been recently allocated to the VMRDA. “By overcoming the technical issues involved in the sale process, we will soon go for auction,” said the Visakhapatnam collector. A private group’s three-acre land is part of this 13.59-acre property. In return, the private group was given lands belonging to the VMRDA in several prime localities of the city.

  • Published On Sep 6, 2023 at 09:05 AM IST

Join the community of 2M+ industry professionals

Subscribe to our newsletter to get latest insights & analysis.

Download ETRealty App

  • Get Realtime updates
  • Save your favourite articles

Scan to download App

Source link

Abhay Singh

Web Developer

Leave a Comment