Tourism Minister Kandula Durgesh on Thursday refuted YSRCP leader and former TTD chairman Bhumana Karunakar Reddy’s statement on allotment of land for the Oberoi Hotel project in Tirupati.
In his statement, the minister categorically rejected the allegations leveled by Mr. Karunakar Reddy on social media and various other media platforms, calling them “irresponsible”. He warned the YSRCP leader that no attempt to play with the sentiments of Lord Venkateswara’s devotees would be tolerated.
Recalling the development, the minister said that the YSRCP government through GO No. 24 issued on November 24, 2021 has allotted 20 acres of land in Survey No. 604 in Peruru village located at the foothills of Tirumala to Mumtaz Hotels Private Limited, an affiliate of the Oberoi Group. The project was approved with a proposed investment of ₹250 million, to develop Oberoi Resorts with 100 villas, restaurants, banquet hall, spa, fitness center, coffee shop, bar and other luxury amenities, promising employment to 1,500 people.
The minister said that Mr. Bhumana approved and supported the project while the then Chief Minister YS Jagan Mohan Reddy laid the foundation stone of the project without consulting religious institutions or key stakeholders. This sparked widespread protests from religious bodies and the public demanding protection of the sanctity of Tirumala, Mr. Durgesh said.
He said the TDP-led coalition government, keeping in mind public opinion, officially canceled the lease on 7 August 2025 after the TTD Council passed a resolution (NV No. 102 dated 18.11.2024) demanding cancellation of the land allotment.
He said that when the project was put on hold for nearly four years, the Oberoi Group allegedly incurred losses of ₹14 crore on project preparation, construction schedule, recruitment and training. In addition, the state suffered losses in tourism revenue and brand value. The minister asked who should be responsible for these losses and blamed the YSRCP government.
To restore investor confidence, the coalition government has initiated remedial measures and explored alternative land for the Oberoi group. After surveying the land at Daminid and coordinating with the District Collector of Tirupati, a suitable land was identified in Survey No. 588/A of Tirupati village RS, approximately 500 meters opposite the earlier site. The Minister informed that the hotel group has accepted the Tirupati RS plot and said that it has requested for early allotment of the new plot along with certain reliefs and adjustments in payment due to the financial losses it has suffered due to the delay. Accusing the YSRCP regime of creating this situation and undermining investor confidence, Mr. Durgesh vehemently denied claims that TTD land worth ₹460 crore was allotted in exchange for tourism land worth ₹18 crore.
Accusing Mr. Bhumana of exaggerating the problem and misleading the public with inflated and inconsistent figures, the Minister informed that the Oberoi Group plans to invest ₹1,350 crore in five locations in Andhra Pradesh – Tirupati, Visakhapatnam, Gandikota, Horsley Hills and Pichukalanka – to0 direct jobs.1100 He said that currently 32 DPRs worth ₹4,849 crore (4 088 rooms) and 22 EOIs worth Rs 3,500 crore (3,200 rooms) and such controversies could deter other investors.
Published – 18 Dec 2025 21:47 IST
