Allegations are being raised over large-scale irregularities in the Andhra Pradesh IT Department headed by Nara Lokesh. Critics say it has become a routine practice to alter agreements after they are finalized, citing requests from companies or letters submitted later. This pattern is reportedly visible in several projects, including the Google Data Center project. In the case of the Google Data Center, the government initially allotted 480 acres of land, but within a few days increased the allocation to 601 acres. Under the banner of employment generation, the Andhra Pradesh government has been allocating land worth thousands of crores not only to major IT companies but also to pure real estate firms. In the process, the government itself is allegedly violating its own policies. From the beginning, the government has shown special interest in the project of Sattva Developers Private Limited, which Nara Lokesh himself reportedly claimed to have brought in after visiting Bengaluru.
The government allotted 30 acres of land to the company in Madhurawada at the rate of ₹1.5 crore per acre. However, based on current market prices, the total land value is estimated to be well over ₹1,000 crore. Even after allotting the land, the government reportedly allowed the company to delay payments without any interest. The company sought permission to pay ₹45 crore even after the 60-day deadline had expired, and the government approved the request by issuing a formal Government Order (GO). Now, the government has extended further concessions to the Sattva project. The Andhra Pradesh government had allotted these 30 acres in Visakhapatnam for the development of office space for IT and IT-enabled services companies, along with retail and residential space development. The company claims it will invest ₹1,500 crore and generate employment opportunities for 25,000 people.
The government issued land allotment orders to Sattva Developers Private Limited on August 1, 2025. Later, on March 10, 2026, the company wrote a letter to the government requesting permission to execute sale agreements for the allotted 30 acres in favor of its associate companies — Sattva Properties Private Limited and Orwell Horizon Private Limited. According to the proposal, Sattva Properties Private Limited would undertake the residential space development project, while Orwell Horizon Private Limited would handle the IT and ITES project. As usual, the Andhra Pradesh government placed the proposal before the SIPB and approved it.
However, permission was granted with a condition that the original allottee, Sattva Developers Private Limited, must retain at least a 51 percent stake in both associate companies. Officials point out that this effectively allows companies that obtained land worth thousands of crores at throwaway prices — along with incentives and concessions from the government — to sell up to 49 percent stakes in these projects. A senior IAS officer commented that it remains to be seen who will eventually acquire these stakes in the coming days.