Govt withdraws LuLu Mall allotment after public uproar

metro india news  I AMARAVATI

In a political and administrative reversal, the Andhra Pradesh government has withdrawn its decision to allot 4.15 acres of prime APSRTC land in Vijayawada to LuLu International Shopping Malls Pvt Ltd, following intense public opposition, legal challenges, and sustained protests. The move, widely hailed as a people’s victory, marks a rare rollback of a high-value land allotment involving a global retail giant.

The land parcel, located at the strategically important old RTC bus stand in Governorpet, one of Vijayawada’s busiest commercial hubs, was earlier earmarked for a 99-year lease under GO No. 137 issued in July 2025. The proposed project involved the construction of a large-scale shopping mall by the UAE-based LuLu Group, which operates retail chains across multiple countries.

However, the decision quickly snowballed into controversy. Critics alleged that the land, valued at several hundred crores, was being handed over at a throwaway price without transparent bidding. Petitioners, including former minister Vadde Sobhanadreeswara Rao and others, approached the Andhra Pradesh High Court through multiple Public Interest Litigations (PILs), questioning the legality and fairness of the allotment.

During the latest hearing, the Advocate General informed the High Court that the government had decided to withdraw the allotment, effectively putting an end to the proposed deal. This follows earlier indications from the government that it was reconsidering the decision amid mounting pressure.

The agitation on the ground was equally intense. RTC employees’ unions, left parties including the CPI(M), traders’ associations, and civil society groups staged protests, arguing that the move would harm public interest. They warned that converting a crucial public transport asset into a private commercial space would not only weaken APSRTC but also severely impact small and medium traders in the surrounding areas.

Opposition voices framed the issue as a larger battle against corporate land grabbing, accusing the government of prioritising private interests over public assets. CPI(M) leader Ch.Baburao termed the rollback a historic victory for people’s movements, asserting that it sends a strong message against arbitrary allocation of government land.