Jagan's Capital Plan Falters? SC Refuses To Stay HC Order On New Andhra Capital At Amaravati

The Supreme Court denied the Andhra Pradesh government's request to stay a Andhra Pradesh high court order from last year, which instructed the state administration led by Jagan Mohan Reddy to develop Amaravati as the state capital within six months.

The case will have to be heard by a new bench as Justice Joseph retires on June 16. The next date of hearing is July 11.

In the state assembly, Chief Minister Jagan Mohan Reddy had announced his plan to shift to Visakhapatnam and begin working from the coastal city starting in July.

Telangana and Andhra Pradesh were to share Hyderabad as capital for 10 years after the split of Andhra Pradesh in 2014.

Chandrababu Naidu, the new Chief Minister, had originally announced the construction of a world-class capital at Amaravati; the ground-breaking ceremony was attended by Prime Minister Narendra Modi.

Despite financial obstacles, vast areas of land were obtained and ambitious blueprints were created, including constructing a new capital city.

In May 2019, when Reddy became Chief Minister his government alleged a massive real estate scandal in land acquisition for a new capital at Amaravati, leading to the annulment of the AP Capital Region Development Authority.

Reddy's government passed a new law on decentralisation, designating three capitals: Kurnool for the judiciary, Amaravati for the legislature, and Vizag for the executive power.

In March 2022, Andhra Pradesh High Court ordered building the capital at Amaravati per the master plan in six months, in favour of the farmers. The state government appealed to the Supreme Court.

Several farmers had challenged the cancellation of the CRDA Act passed by the Chandrababu Naidu government that aimed to develop a capital in Amaravati. They had donated land towards this project, leading to multiple petitions.

The high court's division bench, led by Chief Justice Prashant Kumar Mishra, issued its conclusive judgment on the petitions against the Decentralisation Act and the abolishment of the Andhra Pradesh CRDA Act.

The state government withdrew AP Decentralisation Act and CRDA Repeal Act in November.

The petitioners in the case raised concerns about unresolved issues linked to the CRDA act which includes the transfer of developer plots to landowners who had given away their farm lands, basic infrastructure and development, and mortgaging of lands in banks.