After a nearly 18-year legal battle, the Andhra Pradesh government has finally reclaimed close to 14,000 acres of land in YSR Kadapa district that had been allotted nearly two decades ago to Brahmani Industries, owned by mining tycoon Gali Janardhan Reddy, for a proposed integrated steel plant and airport project.
The reclaimed land is located at Ambavaram in Jammalamadugu mandal of YSR Kadapa district. District Collector Cherukuri Sridhar issued orders for resumption of the land after the company allegedly failed to use it for the purposes for which it had been allotted.
Officials have indicated that the land could now be earmarked for future industrial development.
The land was allotted in 2007, during the tenure of former chief minister Y S Rajasekhara Reddy, as part of an ambitious plan to transform Kadapa into a major steel manufacturing hub.
Brahmani Industries, promoted by Gali Janardhan Reddy’s Obulapuram Mining Company, had proposed setting up a large integrated steel plant in the region.
Under the project, more than 10,700 acres were allotted for the steel plant. Another 3,115 acres were allotted in 2008 for the development of a commercial airport, flying academy and aviation-related industries at a concessional rate of Rs 25,000 per acre.
However, despite taking possession of the land, the company allegedly failed to establish either the steel plant or the airport. Officials said only a boundary wall was constructed at the site, and even that has since fallen into disrepair.
The project ran into trouble after 2009 following illegal mining cases in Karnataka involving Gali Janardhan Reddy, multiple legal disputes and subsequent government decisions. As a result, the proposed steel plant never took off.
Authorities also alleged that the land allotted for the steel project was mortgaged to banks to raise loans worth hundreds of crores without implementing the promised industrial project.
Following the death of YSR, the issue came under scrutiny, prompting the government to begin the process of reclaiming the land. The Congress government headed by N Kiran Kumar Reddy issued orders in 2013 seeking to resume the land.
However, the company challenged the move before the High Court, resulting in prolonged litigation. After the High Court dismissed the company’s petitions, the state government proceeded with the resumption process.
Although the government had also issued orders as early as 2011 to reclaim the unused land, the process remained pending for years before gaining momentum under the present administration.
Revenue officials recently issued show-cause notices to the company after finding that the land had not been used for its intended purpose, allegedly violating the Board Standing Orders governing government land allotments. The company reportedly failed to submit any explanation.
Subsequently, the Kadapa District Collector cancelled the allotment under the provisions of BSO-24(6) and G.O. Ms. No. 57 and directed the Jammalamadugu Tahsildar to take possession of the land within 48 hours.
Revenue authorities completed the resumption process by restoring the land as government property in the revenue records. The District Registrar has also been instructed not to permit any registrations, leases or other transactions involving the reclaimed land.
Officials said the government is expected to use the 14,000-acre land bank for future industrial projects.
