Won't Invest In Andhra Again: UAE-Based Lulu Group After AP Government Revokes Land Deal
In another hit to India’s infrastructure, UAE-based Lulu Group International, in a press statement, announced that the company will not be investing in Andhra Pradesh in the future. The Group cited a lack of transparency and losses that ensued following the reversal of land allotted to the company by the previous government as reasons behind the decision.
Ananth Ram, Lulu Group’s Director for India, expressed deep dismay towards the new developments. He claimed that the land allotment was a fair and transparent process and that the company also incurred huge losses due to the commencement of the project that was already underway. While accepting the new Andhra Pradesh government’s decision to revoke the land allotment for the project, Ram also laid some light on what the proposed plan was.
Ram said the company had planned an international convention center with a shopping mall in Vishakhapatnam’ and was ready to invest around Rs. 2200 crore. “Apart from this, the proposed mix-use project was expected to provide employment to more than 7,000 local youth,” Ram added.
On the flip side, the present government under Chief Minister Y S Jagan Mohan Reddy decided to take back the initial deposit of around Rs 14 crore given to Lulu group for the project. The government claimed that the project was given to the group by the previous Telugu Desam Party(TDP) government based on unethical methods stemming from the former CM’s personal relations with the company.