Tourism Minister Kandula Durgesh on Thursday refuted the statements made by YSRCP leader and former TTD Chairman Bhumana Karunakar Reddy on land allotment made to the Oberoi Hotel project in Tirupati.
In a statement, the Minister categorically rejected the allegations made by Mr. Karunakar Reddy on social media and various other media platforms and called them “irresponsible”. He warned the YSRCP leader that any attempts to play with the sentiments of Lord Venkateswara’s devotees would not be tolerated.
Recalling the developments, the Minister said the YSRCP government, through G.O. No. 24 issued on November 24, 2021, had allotted 20 acres of land in Survey No. 604 of 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 crore, aiming to develop the Oberoi Resorts with 100 villas, restaurants, banquet hall, spa, fitness centre, coffee shop, bar, and other luxury amenities, promising employment to 1,500 people.
The Minister said Mr. Bhumana had approved and endorsed the project, while the then Chief Minister Y. S. Jagan Mohan Reddy laid the foundation stone for the project, without consulting religious institutions or key stakeholders. This triggered widespread protests from religious bodies and the public, demanding protection to Tirumala’s sanctity, said Mr. Durgesh.
He said the TDP-led coalition government, in view of the public sentiment, officially cancelled the lease on August 7, 2025 after the TTD Board passed a resolution (G.O. No. 102 dated 18.11.2024) requesting cancellation of the land allotment.
He said as the project was stalled for nearly four years, the Oberoi Group reportedly incurred losses of ₹14 crore towards project preparation, construction timelines, recruitment and training. Additionally, the State suffered losses in tourism revenue and brand value. The Minister questioned who should be held responsible for these losses and blamed the YSRCP government for it.
He said to restore investor confidence, the coalition government initiated corrective measures and explored alternative land for the Oberoi Group. After examining the land at Daminidu and coordinating with the Tirupati District Collector, suitable land was identified in Survey No. 588/A of Tirupati R.S. village, approximately 500 metres opposite the earlier site. Informing that the hotel group had accepted the Tirupati R.S. land, the Minister said it had requested for early allotment of the new land along with certain concessions and adjustments in payments on account of financial losses it had incurred due to the delay. Blaming the YSRCP regime for creating this situation and eroding investor confidence, Mr. Durgesh strongly denied the allegation that TTD land worth ₹460 crore was allotted in exchange for tourism land valued at ₹18 crore.
The Minister accused Mr. Bhumana of exaggerating the issue and misleading the public with inflated and inconsistent figures and informed that the Oberoi Group plans to invest ₹1,350 crore across five locations in Andhra Pradesh — Tirupati, Visakhapatnam, Gandikota, Horsley Hills, and Pichukalanka — to create approximately 11,000 direct and indirect jobs. He said currently 32 DPRs worth ₹4,849 crore (4,088 rooms) and 22 EOIs worth ₹3,500 crore (3,200 rooms) were pending in the tourism sector, and such controversies could discourage other investors.
Published – December 18, 2025 09:47 pm IST
