Chandrababu Naidu government negotiates land swap deal for Oberoi hotels near foothills of Tirumala temple

An investment proposal for the Oberoi group near the foothills of Sri Venkateswara temple, Tirumala, which had been cleared by the previous YSRCP government in Andhra Pradesh but had got caught in religious sentiments, has been resolved through a land swap deal negotiated by Chief Minister N. Chandrababu Naidu.

The land swap will ensure that the investment of up to ₹250 crore is retained in the State while addressing the religious sentiments at the same time, official sources said.

The issue dates back to the year 1999 when the government issued orders allotting 50 acres of land in Peruru village, Tirupati rural, to the Tourism department, for the development of a visitors’ zone for the utilisation of pilgrims of the Venkateswara Temple.

The YSRCP government then in a November 24, 2021 order, allotted 20 acres out of these 50 acres to the Oberoi group for the development of a resort. The allotment was made in the name of Oberoi’s Special Purpose Vehicle (SPV) called Mumtaz Hotels Ltd.

The name of the project SPV had riled religious sentiments and led to protests from religious groups, which had sought cancellation of the land allotment.

Following these protests, the Tirumala Tirupati Devasthanams (TTD), which manages the affairs of the temple, in a November 2024 resolution, resolved to request the government to cancel this allotment and ensure that the land was earmarked only for purposes that align with the sanctity and spirituality at Tirumala.

Chief Minister Mr. Naidu then instructed the TTD to take back the land and allot an alternative piece of a 20-acre land to the Oberoi group. This swap mechanism was approved by the TTD at its Board meeting in July 2025.

The TTD has offered an alternative parcel of land nearby at a distance of 2-3 km and after this, the land allotment to Mumtaz Hotels was cancelled on August 7 through a government order.

Cabinet nod soon

To operationalise the swap mechanism, the alternative land has been obtained by the Tourism department and would be allotted to the Oberoi group. This mechanism has already been approved by the State Investment Promotion Committee (SIPC) in its meeting dated August 22, 2025 and the move is likely to be cleared by the State Cabinet later this week, official sources said.

“By doing this swap arrangement, the Government of Andhra Pradesh [led by Mr. Naidu] has retained India’s most valuable luxury hotel brand and also respected religious sentiments,” according to TDP spokesperson Jyothsna Tirunagari.

“The State government is very keen on safeguarding the interests of investors and also taking into consideration the religious sentiments of the people,” she added.

The TTD said the decisions had been made to protect the sanctity and safety of the temple precincts.

According to G. Bhanu Prakash Reddy, member of TTD Trust Board: “It is just an exchange of land. The earlier land was in the foothills of the Tirumala. This will protect the sanctity of religious sentiments.”