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In a recent development, the Andhra Pradesh High Court declined to impose a stay on the land allotment made to Tata Consultancy Services (TCS) in Visakhapatnam, despite a public interest litigation challenging the decision. The petitioner alleged undervaluation and procedural lapses, but the court observed that such incentives were common practice to attract early-stage investment. The government clarified that the land was being leased and not sold, with the court allowing the process to continue pending final adjudication.
The Andhra Pradesh High Court ruled in favour of the state government and Tata Consultancy Services (TCS) regarding the allotment of land in Visakhapatnam, turning down a request for an interim stay. The bench, comprising Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati, heard a public interest litigation filed by the Forum for Development of North Andhra, which objected to the allotment of government land at what it claimed was a nominal rate. Advertisement
The petitioner argued that land worth over INR 500 crore was being leased for just INR 10 lakh per acre, allegedly in breach of the guidelines set by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC). There were concerns that the state might proceed to register sale deeds in TCS's name, which would be irreversible should the company fail to fulfil its project obligations.
In response, the state government clarified that the transaction was structured purely as a lease and no outright sale was involved. Government counsel further requested more time to file a detailed counter affidavit.
The court noted that incentivising major corporate investors with land on concessional terms was not uncommon, particularly during early phases of economic development. It cited TCS's proposed investment of INR 1,370 crore and employment potential of around 12,000 jobs as significant grounds to permit the allotment to proceed.
Emphasising the project's potential to boost the region's economy, the court stated that no interim stay was justified at this stage. However, it added that the allotment would be subject to the outcome of the final hearing, scheduled to take place in the coming weeks.
As the final hearing approaches, the outcome will determine whether such incentivised allotments can withstand judicial scrutiny amid increasing public interest in land governance and transparency.
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