The Andhra Pradesh government is believed to have cancelled the allotment of 50 acres land given to Satyam Computer for setting up an information technology Special Economic Zone.
"The Revenue Department has asked the APIIC to withdraw the allotment of 50 acres as per the government decision," a senior official told PTI on Tuesday.
The government had issued orders on December 4, last year allocating 50 acres of land in favour of Andhra Pradesh Industrial Infrastructure Corporation in Visakhapatnam. In turn, APIIC was to allot the land to Satyam Computers enabling the company to develop a software SEZ.
However, the company spokesperson said that they have not received any communication from the government to the effect that the land allotment was being cancelled.
"We have not received any notice from the government... we have no time to think about those issues," Satyam's Global Marketing and Communications head Hari Thalapalli said.
The 50-acre land was originally allotted to the police department and Visakhapatnam Urban Development Authority - 25 acres each.
The land was offered in lieu of the land originally offered to the company in 2005, the official said.
It may be recalled that APIIC had entered into a MoU with Satyam in 2005 for allotment of 50 acres at Thotlakonda Hills in Bhimunipatnam Mandal in Visakhapatnam district.
Chief Minister Y S Rajasekhara Reddy had laid foundation stone for the proposed software project in May 2005 and later the company paid Rs 5 crore (Rs 10 lakh per acre) to APIIC and entered agreement of sale in April 2007, sources said.