VIJAYAWADA: On Wednesday, the high court ruled against halting the land allocation to Tata Consultancy Services (TCS) in Visakhapatnam. The court noted that many states offer land to companies at minimal costs to attract investments, questioning what issue arises if Andhra Pradesh adopts a similar approach.
However, the high court indicated that the allotment is contingent upon the final decision regarding the petition.
Nakka Nammi Grace, president of the Society for Protection of Civil Property and Environmental Rights in Visakhapatnam, filed a Public Interest Litigation (PIL), arguing that the government’s allocation of land to TCS violates APIIC guidelines.
Jada Sravan Kumar, representing the petitioner, stated that while there’s no opposition to TCS receiving land, the government is offering 21.16 acres valued at ₹529 crore for just ₹0.99 per acre, breaching the land allotment policy established by APIIC. He emphasized that once registered sale deeds are executed for TCS, the government would forfeit its rights over the land, rendering it unable to reclaim it even if TCS fails to fulfill its investment and job creation commitments.
In defense of the state government, special pleader S. Pranathi clarified that the land is being leased, not sold, and requested additional time to present a counter affidavit detailing the matter.
After considering both sides, the high court bench, led by Chief Justice Dhiraj Singh Thakur and Justice Ravi Cheemalapati, remarked that providing incentives to companies investing in the state is a common practice. As Andhra Pradesh is in early developmental stages, the pricing of land for a significant investor like TCS, which plans to invest ₹1,370 crore and create 12,000 jobs, is less critical, the bench stated.
Additionally, the court noted that since the government claims the land is being leased, it cannot issue immediate directions to halt the procedure. The state was directed to submit a counter affidavit, and the case is scheduled for further hearing in four weeks, with the land allotment remaining subject to the petition’s final verdict.
