3 days ago
- Business
- New Indian Express
Andhra HC backs land allotment to Cognizant at Rs 0.99 per acre in Visakhapatnam
VIJAYAWADA: The High Court has backed the State government's initiative to develop Visakhapatnam into a major IT hub, emphasising that offering incentives to attract leading companies is vital to prevent them from shifting operations to cities like Hyderabad and Bengaluru.
The court observed that land allotments at nominal rates should not be viewed narrowly, as they bring long-term benefits such as employment generation and increased revenue for the State.
The court made these remarks while hearing a public interest litigation (PIL) filed by Nakka Nammi Grace, president of Visakhapatnam-based Society for Protection of Civil Property and Environmental Rights. The PIL challenges the State government's decision to allocate 22.19 acres of land in Madhurawada to Cognizant Technology Solutions India Private Limited at a nominal rate of Rs 0.99 per acre, as per Government Order (GO) 21 issued on July 1, 2025.
Representing the petitioner, advocate Jada Sravan Kumar contended that the land, valued at Rs 1,109 crore, was being transferred through a sale deed, allegedly violating Andhra Pradesh Industrial Infrastructure Corporation (APIIC) norms, which mandate leasing rather than sale for such allotments.
The bench underscored that attracting reputed firms is crucial for creating employment opportunities and enhancing State revenue. It cautioned against a shortsighted view of land allotments, warning that without strategic investments, Andhra Pradesh risks remaining an agriculture-dependent State with large swathes of underutilised land.
Defending the allotment, Special Government Pleader S Pranati stated that the decision aligns with the State's new industrial policy. The government sought additional time to file a detailed counter-affidavit, which the court granted.
The bench directed that the PIL be clubbed with other petitions challenging similar land allotments.
