Archive · 14 Aug 2026
Lepakshi Knowledge Hub Stalled Since 2008 Amid ED Land Attachment
The Lepakshi Knowledge Hub is a big planned industrial park in Andhra Pradesh, India.
A company called INDU Projects was given a huge piece of land to build it.
The plan was to bring new technology companies and give jobs to about 150,000 people.
But the project never really got going.
It has been stuck since 2008, which is a very long time.
A government agency called the Enforcement Directorate has taken control of the land because of money problems.
There were also claims that some money was sent to the wrong places.
Different political groups keep blaming each other for why the project is stuck.
Many companies still want to use this land because it is near a big airport.
Now the government is looking for other land nearby to start new projects instead.
The Lepakshi Knowledge Hub in Anantapur district has remained stalled since 2008 amid legal complications and attachment of its land by the Enforcement Directorate.
Conceived by the Congress government under Y.S. Rajasekhar Reddy, the project aimed to attract investments of up to ₹10,000 crore and generate employment for about 1.5 lakh people.
APIIC handed the venture to INDU Projects along with 8,844 acres in Chilamathur and Gorantla mandals along NH-44, about 75 km from Kempegowda International Airport in Bengaluru.
INDU Projects approached the NCLT citing irrecoverable losses after obtaining ₹793 crore in loans from Karnataka banks pledged against the land, and banks separately approached the NCLT for recovery.
Allegations say INDU Projects diverted funds to shell companies linked to Y.S. Jagan Mohan Reddy and associates, while Telugu Desam and YSRC governments trade charges over the unresolved tangle.
APIIC now plans to acquire alternative land near Tekulodu in Chilamathur mandal for new industries because of the continuing legal issues.
- Who
- The Andhra Pradesh government's APIIC, the developer INDU Projects, the Enforcement Directorate, the NCLT, and the Telugu Desam and YSRC governments.
- What
- The Lepakshi Knowledge Hub industrial and knowledge hub project remains stalled since 2008, with its land attached by the Enforcement Directorate amid legal complications.
- When
- Since 2008, with the current TD-led NDA government in power for about two-and-a-half years.
- Where
- Chilamathur and Gorantla mandals in Anantapur district, Andhra Pradesh, along NH-44, about 75 km from Kempegowda International Airport in Bengaluru.
- Why
- Legal complications, ED attachment of the land, alleged diversion of funds, loan-recovery proceedings before the NCLT, and the state government's reluctance to intervene have kept the project unresolved.
Allegation of fund diversion
Claim of irrecoverable losses
Why the project collapsed
Allegation of fund diversion
INDU Projects allegedly diverted funds to shell companies linked to Y.S. Jagan Mohan Reddy and associates, prompting the Enforcement Directorate to attach the property allotted to the company.
Claim of irrecoverable losses
INDU Projects told the NCLT it had run into irrecoverable losses, and banks approached the NCLT to recover their ₹793 crore loans, with legal complications keeping the matter unresolved.
- Project
- Lepakshi Knowledge Hub
- Location
- Chilamathur and Gorantla mandals, Anantapur district, along NH-44; about 75 km from Kempegowda International Airport, Bengaluru
- Land Allotted
- 8,844 acres handed over to INDU Projects by APIIC
- Planned Investment
- Up to ₹10,000 crore
- Planned Employment
- About 1.5 lakh people
- Loans Pledged
- ₹793 crore from banks in Karnataka, pledged against the land
- Status
- Stalled since 2008; land attached by Enforcement Directorate; matter pending with ED
- Proposed Sectors
- Aerospace, space, electronics, drones, information technology (16 sector-specific zones planned by Lee and Associates)