Lulu Mall Project Hits Legal Roadblock Again
The proposed Lulu International Shopping Mall project in Visakhapatnam has once again been delayed, with multiple court cases holding up the allotment of land for the project at Harbour Park on Beach Road.
Officials said the land cannot be transferred to the Lulu Group until stay orders issued in the pending cases are cleared. The disputes include claims by some individuals seeking compensation and ownership rights over the land, while others have challenged the government’s decision to lease the prime property, alleging loss to the public exchequer.
Residents living near the proposed site have also raised concerns over increasing traffic congestion in the Beach Road area if the project comes up.
The Telugu Desam Party government had allotted 13.74 acres to the Lulu Group in 2018 for a shopping mall, convention centre, and five-star hotel project proposed at an estimated cost of ₹2,200 crore. Of the total land, 10.85 acres belonged to APIIC, while the remaining extent was acquired from the CMR Group.
The company had said the project would generate direct employment for around 5,000 people.
However, after the YSR Congress Party came to power, the allotment was cancelled before construction could begin. The government later attempted to auction the land through the National Buildings Construction Corporation (NBCC) under the “Mission Build AP” initiative.
Following legal challenges and a stay order from the High Court, the land was transferred to VMRDA, which also explored auctioning the property.
After the coalition government assumed office, Chief Minister N. Chandrababu Naidu reportedly revived discussions with the Lulu Group and urged the company to take up the project again on the same site.
The company agreed and proposed to complete the project within three years, promising direct employment for 5,000 people and indirect jobs for another 12,000.
According to the proposal, the government planned to lease the land to the company for 99 years. The project includes a 13.5 lakh sq. ft. shopping mall, Lulu Supermarket, Lulu Fashion and Connect, and a family entertainment centre.
The annual lease amount was fixed at ₹7.08 crore, along with a security deposit of the same amount. Lease payments were to begin from 2028 after a three-year exemption period, with a 10 per cent increase every decade.
However, fresh petitions filed against the agreement alleged that the value of the land exceeded the company’s proposed investment and that the deal would result in losses to the government.
Officials said the project would remain on hold until the pending cases are resolved. APIIC officials said the land continues to remain under its control and has not been allotted to any party.