The Andhra Pradesh government has issued a show-cause notice to Suresh Productions Pvt Ltd, initiating the process of cancellation of 15.17 acres out of the 34.44-acre land parcel originally allotted for the Rama Naidu Film Studios in Madhurawada, Visakhapatnam Rural Mandal.
The move comes after the production company allegedly violated land use terms by attempting to repurpose a portion of the land—meant for film industry development—into a residential layout. The land was granted under Government Order (GO) No 963 dated September 13, 2003, with the goal of promoting cinema-related infrastructure and generating employment in the region.
Supreme Court Intervenes
Concerns over this change were raised in a Special Leave Petition filed by Visakhapatnam East MLA Velagapudi Ramakrishna Babu in the Supreme Court. Acting on the petition, the court issued interim orders on February 9, 2024, directing that the land must not be used for any purpose other than what it was originally intended for.
Following the court’s directive, Special Chief Secretary (Revenue) RP Sisodia instructed the Visakhapatnam District Collector to serve a show-cause notice to the company on April 3, 2025. The Collector was also told to ensure due process by allowing the company an opportunity to explain its stance. Meanwhile, authorities have been directed to take appropriate action for the alleged breach of agreement.
Apart from the cancellation of land for Rama Naidu Studios, the Visakhapatnam Metropolitan Region Development Authority (VMRDA) and Greater Visakhapatnam Municipal Corporation (GVMC) have been instructed not to entertain any proposals from the production company seeking land use changes.
Background
The company had earlier executed a Deed of Conveyance on January 5, 2010, after receiving clearance under a relaxation of Section 22-A of the AP Registration Act and completing registration formalities.
However, on March 2, 2023, Suresh Productions submitted a proposal to the GVMC seeking approval for a residential layout on 15.17 acres of the allotted land—without obtaining a required No Objection Certificate (NOC) from the Visakhapatnam District Collector.
The government has clarified that the remaining portion of the land can be retained by the company if no further violations are found.
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