In a decisive move to uphold land use regulations, the Andhra Pradesh government has annulled the 2008 allotment of 12.51 acres to Hayagreeva Farms and Developers in Yendada village, Visakhapatnam. Originally designated for constructing cottages for the elderly and orphans, the land was found to be misused for unauthorized commercial purposes, prompting the state to reclaim it for public use.

Background of the Land Allotment

In 2008, the Andhra Pradesh government allocated 12.51 acres in Survey Number 92/3 of Yendada village to Hayagreeva Farms and Developers. The intent was to establish facilities catering to senior citizens and orphans, with the land valued at ₹45 lakh per acre. The agreement stipulated the construction of these facilities within a specified timeframe to serve vulnerable populations. 

Violations and Misuse of Allocated Land

Investigations revealed significant deviations from the original purpose of the land allotment:

• Unauthorized Sales: Hayagreeva Farms reportedly sold 54% of the land through sale agreements and deeds without obtaining the necessary occupancy certificates from the Greater Visakhapatnam Municipal Corporation (GVMC). 

  Non-Compliant Construction Plans: The building plans submitted lacked designs accommodating the elderly, violating the Building Rules of 2017. Instead, the plans indicated a shift towards constructing residential villas, diverging from the intended purpose of housing for the elderly and orphans. 

• Project Delays: Despite receiving a No Objection Certificate (NOC) in 2018, the firm failed to commence the project within the agreed three-year period, attributing delays to approval processes—a justification the government found unconvincing. 

Government's Decision to Reclaim the Land

Citing these violations, the Andhra Pradesh government issued a memo on March 10, 2025, canceling the land allotment to Hayagreeva Farms. Special Chief Secretary R.P. Sisodia directed the Visakhapatnam District Collector to reclaim the 12.51 acres for public purposes and to submit a detailed report on the matter. 

Enforcement Actions and Legal Proceedings

Prior to the cancellation, the Enforcement Directorate (ED) had investigated the firm for alleged financial irregularities:

• Asset Attachment: The ED provisionally attached immovable properties worth ₹42.03 crore and movable properties worth ₹2.71 crore belonging to Hayagreeva Farms and Developers under the Prevention of Money Laundering Act (PMLA), 2002. 

  Legal Allegations: An FIR filed at Arilova Police Station accused individuals associated with Hayagreeva Farms, including former YSR Congress Party MP MVV Satyanarayana, of forgery, fabricating sale documents, and coercion to illegally acquire the government-allotted land. 

Immediate Actions Taken

Following the government's directive:

• Land Reclamation: A revenue team led by a Visakhapatnam tahsildar seized the 12.51 acres in Yendada, erecting boards to assert government ownership. 

  Political Advocacy: Jana Sena Party corporator P.L.N. Murthy Yadav, whose petition in the Andhra Pradesh High Court contributed to the cancellation, met with District Collector M.N. Harendhira Prasad. He urged the administration to fence the reclaimed land, include it in the 22-A prohibited list, and seize any equipment on-site to prevent further unauthorized activities. 

Implications for Land Allotment Policies

This incident underscores the Andhra Pradesh government's commitment to enforcing land use policies and ensuring that allocated lands serve their intended social purposes. The swift action against Hayagreeva Farms serves as a cautionary tale for entities misusing government allocations, emphasizing the state's zero-tolerance stance on contractual violations and misuse of public resources.