Responding to a petition filed by Iashwarya Orchids, high court issues a stay order on construction activities of Hero Moto Corp at Madanapalli in Chittoor district. The petitioner argued that the state government has not settled the payment until now and also fails to follow the provisions of transparent land acquisition, rehabilitation and resettlement of the 844 acres of land acquired by it from them and allots to Hero Company.

The petitioner also reminds the court that it has issued an interim injunction order in year 2007, when the state government attempted to procure its lands for industrial development. Hence, the high court grants a stay order on construction activities in this huge chunk of land and asked the Company and the state government to maintain ‘status co’ condition until further orders.

This would be a major setback for the state government which is spearheading with industrial development activities. Hero Moto Corp has agreed to set up its first ever manufacturing unit down the south at Madanapalli in Chittoor district with a huge investment of Rs.3, 000 crores. It plans to manufacture 1.8 million units per year initially and increase its production capacity to 12 million units per year in the coming years.

Andhra Pradesh Chief Minister Chandrababu Naidu managed to attract this largest two-wheeler motor bikes manufacturing company-Hero Moto Corp to the state after facing very high competition from neighboring states. Hence, the state government has to resolve this serious issue immediately otherwise neighboring states may definitely take this as advantage and may try to attract it.