The Telugu Desam Party (TDP)-led coalition government in Andhra Pradesh is embroiled in controversy over allegations of a land scam involving the allotment of prime land in Visakhapatnam’s IT region to Ursa Clusters Private Limited, a newly formed US-based data centre company.
he accusations, primarily raised by opposition YSR Congress Party (YSRCP) leaders and amplified through social media, have sparked debates about transparency and favoritism in the state’s industrial land allocation policies.
According to reports, the State Investment Promotion Board (SIPB), chaired by Naidu on April 10, 2025, approved the allocation of 3.5 acres at IT Park and 56.36 acres at Kapulappada in Visakhapatnam to Ursa Clusters for an AI Data Centre project. The land was reportedly allotted at a nominal rate, similar to the controversial allocation of 21 acres to Tata Consultancy Services (TCS), allotted at just 99 paise per acre.
Media outlets pointed that Ursa Clusters, incorporated in India with a paid-up capital of only Rs 9.1 lakh, lacks a credible track record, raising suspicions about its legitimacy and the government’s due diligence.
Ursa Clusters, registered less than two months ago by Pendhurthi Vijay Kumar, a manager at GMR Airport in Shamshabad, and Satish Abburi, a US-based software engineer, reportedly operates from a residential apartment in Hyderabad, with no official website, office, or contact details. Opposition leaders have labeled it a “shell company,” drawing parallels to the 2003 IMG Bharata case, where a dubious entity was allegedly favored by Naidu’s government.
The allocation of nearly 60 acres to Ursa, compared to TCS’s 21.16 acres, has fueled claims of “Babu-mark business” – a term implying backdoor dealings.
Former Chief Minister YS Jagan Mohan Reddy has publicly criticized the move, calling it a “plunder, stash, and devour” policy.
Nara Chandrababu Naidu has long history of facing allegations about favouritism, especially allotting lands to his community business leaders at thruway prices and most of the companies only exist on paper, or dubious records. He has faced these allegations since in his long career. The allegations that he allotted lands in and around Madhapur in his first tenure as Chief Minister in the erstwhile Andhra Pradesh is widely discussed in political circles and social media.
In his previous tenure in the truncated Andhra Pradesh, there were allegations of benami purchases of lands in Amaravathi capital region and also making MoUs with shell companies. He is facing the same allegations in Vizag in this tenure.
The allocation of nearly 60 acres to Ursa, in stark contrast to the 21.16 acres granted to tech giant TCS, has sparked allegations of favoritism and what critics are calling “Babu-mark business” — a term that suggests backdoor dealings and preferential treatment.
Former Chief Minister Y.S. Jagan Mohan Reddy has openly criticized the move, labeling it a classic example of the “plunder, stash, and devour” model of governance.
N. Chandrababu Naidu, the current Chief Minister, has a long history of facing allegations of favoritism — particularly accusations of allocating prime land at throwaway prices to business leaders from his own community. Many of these companies are alleged to exist only on paper or have questionable credentials.
These claims date back to his first tenure as Chief Minister of undivided Andhra Pradesh, with widespread discussions on land allocations in and around Madhapur — a topic that remains active in political circles and on social media.
During his previous term in the newly formed state of Andhra Pradesh, Naidu was accused of facilitating benami land purchases in the Amaravati capital region and signing Memorandums of Understanding (MoUs) with shell companies. Now, similar allegations have resurfaced in Visakhapatnam (Vizag), where critics claim a pattern of dubious land dealings continues under his current leadership.
TDP leaders, including Bheemunipatnam MLA Ganta Srinivasa Rao, have dismissed the accusations as “false propaganda” and vowed to address land-related irregularities from the YSRCP era.