In a set back to the Jagan government, the Andhra Pradesh High Court ordered a stay on the GO issued by the state government to take back 253 acres of land, out of the 483 acres allocated to Amara Raja Infratech (P) Ltd in Chittoor district.

The Jagan government had issued G.O. 33 issued allowing APIIC Limited to take back the unutilised land of 253 acres out of the 483 cres allocated to the M/s. Amara Raja Infratech (P) Ltd.

Challenging the state government move to take back the land, Amara Raja Infratech moved the High Court. The government had contended that the company has not fulfilled its promise to invest Rs 2,100 crore with a potential employment generation of 20,000.

Amara Raja Infratech questioned the government’s wisdom in taking back the land stating that it had entered into a sale agreement with APIIC to buy the land. The company contended that the state government sold the land to APIIC and in turn APIIC had sold the land to the company.

Hearing the petition on Monday, the High Court granted an interim stay over taking back of unused 253 acres from Amar Raja Infra Tech by the AP government.

TDP Lok Sabha member Jayadev Galla family is the promoter of Amara Raja Group companies. The group employees over 20,000 people and generates thousands of crores in revenues.

TDP president Chandrababu Naidu had earlier called it as an act of political vendetta to take back the land allotted to Amara Raja Infratech.