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Lulu Group has obtained prime land in Visakhapatnam and Vijayawada on long-term leases from the Andhra Pradesh government for developing mega shopping malls. Visakhapatnam's project spans 13.74 acres with a 13.5 lakh sq ft mall, while Vijayawada involves 4.15 acres for a 2.23 lakh sq ft retail complex. These allotments come with a 99 year lease and a three-year rent-free construction period under the state's tourism land policy. Critics have raised concerns over public land use, displacement of transport infrastructure, environmental risks, and the concessional deal running against legal norms.
The Andhra Pradesh government recently allotted prime RTC depot land in Vijayawada and beachfront property in Visakhapatnam to the Lulu Group for two large-scale shopping mall developments. It announced the in-principle transfer of about 4.15 acres in Vijayawada, while 13.74 acres along Visakhapatnam's Beach Road were also earmarked for the conglomerate under a long-term lease plan. Advertisement
Both parcels have been offered on 99-year lease terms, including a rent exemption for the initial three years or until the malls become operational. These terms fall under the AP Tourism Land Allotment Policy 2024-29 and were approved during a State Investment Promotion Board meeting chaired by the Chief Minister.
In Visakhapatnam, the Lulu Group plans to invest INR 1,066 crore to build a G+3 shopping mall covering 13.50 lakh sq ft, featuring parking for 2,000 vehicles among other amenities. The Vijayawada development involves an INR 156 crore project spanning 2.23 lakh sq ft with around 120 retail units and parking for 200 vehicles.
Legal scrutiny is already underway: the Andhra Pradesh High Court issued notices to the state government regarding earlier proposals for Visakhapatnam land allotment, following public interest litigation challenging the concessional terms to Lulu Group. A court hearing is pending further government response after summer vacation.
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