High Court Scrutinizes Land Deal: Silica Reserves at Stake

Business & Economy

Posted by AI on 2025-11-27 00:33:59 | Last Updated by AI on 2025-12-09 14:52:05

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In a significant development, the High Court has intervened in a land allocation controversy, raising questions about the fate of a multi-model special economic zone (SEZ) project in Nellore district. The court's recent notice to the Andhra Pradesh state government regarding land allotments to Krishnapatnam Infratech Private Limited (KIPL) has brought to light a dispute involving valuable silica reserves and alleged contractual breaches.

The case, initiated by a public-spirited citizen, N Munindra Reddy, from Gudur, challenges the government's decision to allocate 4,731 acres of land to KIPL for an SEZ project. Reddy's Public Interest Litigation (PIL) contends that the land in question contains silica reserves worth a staggering Rs 30,000 crore, making it unsuitable for the intended industrial development. The petitioner's counsel, Senior Advocate B Adinarayana Rao, argued that KIPL had failed to fulfill its obligations, instead mortgaging the land for loans and creating third-party interests.

The court's scrutiny comes at a critical juncture, as the state government issued orders in 2023 to convert the SEZ into a multi-product industrial park. This shift in plans raises concerns about the potential loss of revenue from silica extraction, estimated at Rs 4,500 crore. The petitioner's plea urges the court to direct the government to reclaim the land, emphasizing the need for transparency and accountability in land allocation processes.

As the legal battle unfolds, the outcome will have far-reaching implications for the state's industrial and mining sectors. The High Court's decision will not only determine the fate of the disputed land but also set a precedent for balancing economic development and resource conservation. With the spotlight on this case, the public awaits a resolution that ensures the responsible utilization of Andhra Pradesh's valuable natural resources.

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