The sale of 1,800 acres of land in Vizag for Rs10 crore has sparked outrage among locals.
The land is owned by a company called Bhabha Estate Trust and has been used by the company to convert land into bungalows and flats in the city for a long time.
But in a surprise move, the trust has announced the sale on Monday and announced the purchase of 1.6 lakh acres of the land for Rs 7 crore, from a company registered in Mumbai, according to the Times of India.
The property was sold for Rs 1,802.75 crore, which is equivalent to the value of a house worth Rs 2.9 lakh, the newspaper quoted a person familiar with the matter as saying.
Bhabha said in a statement that the land was sold at a nominal sale price and that the company has purchased the land as per the terms of the sale.
The purchase of the property was a surprise to many locals, who have expressed concern that the state government has been given a large amount of land for the sale, but have not been able to find any land for a sale of this size.
The state government had given the land to the trust in 2015.
The trust has also sold 1.8 lakh acres, worth Rs 1.7 crore, to a developer in the past and the property in Vizig has been sold off for Rs 2,000 crore to a company in the last three years.