VIJAYAWADA, – The Andhra Pradesh High Court issued notices to the state government, demanding counter-affidavits in two separate Public Interest Litigations (PILs) concerning significant financial and land-related decisions. The cases involve the proposed land allotment to the LuLu Group for a shopping mall in Visakhapatnam and the government’s plan to raise ₹9,000 crore through non-convertible debentures (NCDs).
In the first PIL, filed by Paka Satyanarayna, allegations have surfaced regarding the state government’s intent to allot a substantial 13.83 acres of land to the LuLu Group at a seemingly nominal price. Senior counsel Ashok Ram, representing the petitioner, highlighted a contentious history, noting that the state government had previously allotted land to the same company only to cancel it later. The court, taking these submissions into consideration, directed the state government to present its final decision on the land allotment and scheduled the matter for further hearing post-summer vacation. Special government pleader K.M. Krishna Reddy informed the court that while the land allotment is under consideration, a conclusive decision is yet to be made.
The second PIL, brought forth by YSRCP MLA Lella Appi Reddy, challenges the government’s ambitious plan to raise ₹9,000 crore via NCDs. While the High Court acknowledged that fund-raising is a policy decision aimed at new project development, it scrutinized the petitioner’s concerns. Senior counsel P. Veera Reddy, arguing for the petitioner, raised a critical point: if the Andhra Pradesh Mineral Development Corporation (APMDC), implicitly linked to the NCDs, defaults on repayment, bond purchasers might attempt to draw funds from the state’s consolidated fund with RBI permission. Reddy vehemently argued that such an arrangement would be “illegal and violates constitutional provisions.”
Despite the serious nature of the allegations, the High Court clarified that it is not impeding the NCD issuance process, allowing the government to proceed. However, it has mandated the state government to file counter-affidavits regarding the NCDs as well. Both matters have been adjourned for further hearing after the summer judicial recess. The court’s directives underscore a heightened judicial oversight on significant government policy and financial maneuvers in the state.
