HC questions free land allotment to Adani firms

The Andhra Pradesh High Court has issued notices to the state government and the concerned Adani Group companies in connection with the allotment of land for a proposed data centre in the Adavi Varam and Mudasarilova areas near Visakhapatnam.

The notices were issued while hearing a public interest litigation (PIL) filed by Nethala Nageswara Rao, Anakapalli district president of the Jai Bheem Bharat Party (JBP). The petitioner challenged the allotment of around 480 acres of government land to Ride and Infotech India Private Limited, Adani Infra Private Limited, and Adani Power India Private Limited, allegedly free of cost.

Advocate Jada Shravan Kumar, appearing for the petitioner, submitted that the land was highly valuable and that its market worth was estimated at about Rs 5,000 crore. He argued that the allotment violated the State’s 2023 Land Allotment Policy (GO No.117), which stipulates that land should be leased to industries and that ownership rights should be considered only after project completion.

He further contended that executing a sale deed before the establishment of the project would permanently deprive the government of its rights over the land. The petitioner referred to two government orders issued in 2025 in favour of the Adani companies - GO 40 dated October 11, providing incentives worth Rs 1,000 crore along with land, and GO 66 dated December 2, directing the immediate transfer of 480 acres.

A Division Bench comprising Chief Justice Dhiraj Singh Thakur and Justice Challa Gunaranjan questioned the legality of the allotment.

The Bench sought to know under which law the land could be transferred free of cost and how a sale deed could be executed when policy mandates leasing. The court also inquired whether registration of the sale deed had already been completed.

Appearing for the state, advocate general Dammalapati Srinivas sought time to study the matter in detail and informed the court that a comprehensive counter-affidavit would be filed.

Taking note of the submissions, the High Court directed the government to file a detailed affidavit and issued notices to all respondents. The hearing was adjourned for four weeks.