KADAPA/VIJAYAWADA: Signalling the end of a long-drawn legal battle, the Kadapa district administration has initiated a massive drive to reclaim nearly 13,000 acres of land originally allotted to the defunct Brahmani Steels project.
Moving swiftly on executive orders, the Jammalamadugu revenue authorities have already taken possession of 3,000 acres, with active measures underway to reclaim the remaining 10,000 acres.
The high-profile industrial land dispute dates back to 2007, when the erstwhile AP government headed by Chief Minister YS Rajasekhara Reddy allotted 10,707.53 acres of public land to Karnataka-based mining baron Gali Janardhan Reddy for setting up a steel plant near Jammalamadugu at a subsidised price of Rs 18,000 per acre. Concurrently, another 3,118 acres of land was set aside in the vicinity for a dedicated airport project.
However, the venture completely derailed after Janardhan Reddy illegally mortgaged the government-allotted lands with Axis Bank to secure a loan of Rs 350 crore without obtaining the Collector’s clearance.
Land reclamation triggers a political storm in State
Following the subsequent arrest of Janardhan Reddy in the infamous Obulapuram illegal mining scam, all construction work came to a permanent halt. Taking serious note of the gross violations, the subsequent N Kiran Kumar Reddy government issued GO Ms No. 333 on June 20, 2013, cancelling the MoU and ordering the attachment of the lands.
Brahmani Steels challenged the cancellation in the High Court, tying up the land parcels in prolonged litigation for over a decade. The deadlock was recently broken after Kadapa District Collector Sreedhar Cherukuri submitted conclusive documentary evidence defending the State’s re-entry rights.
With the company’s representatives consistently failing to appear for hearings, the High Court dismissed both petitions as defaulted on June 25, closing the case in the State’s favour.
The definitive repossession of these lands, now estimated to be worth over Rs 5,000 crore, has triggered a massive political storm, resurrecting memories of the multi-crore Obulapuram Mining Company (OMC) scam. Political circles are actively discussing how the original promise of generating 10,000 direct jobs through a 20-lakh-tonne annual steel capacity was systematically reduced to a paper promise, while promoters prioritised the illegal export of high-grade iron ore under the guise of captive mining.
Furthermore, the enforcement action has revived scrutiny over the alleged financial links between Janardhan Reddy and YS Jagan Mohan Reddy.
The TDP points out that while the Kia project received swift land clearances and rapidly commenced commercial production—ultimately creating thousands of jobs and exporting vehicles to 90 countries—the Brahmani project tied up nearly 14,000 acres of prime land in endless litigation.
Speaking to TNIE, Jammalamadugu RDO Shirisha confirmed that the field-level repossession drive is operating on a war footing. “We have already reclaimed 3,000 acres into the government land bank. The process to take over the remaining 10,000 acres is moving forward,” the RDO said.