Hyderabad, Sep 29 (IANS) The Andhra Pradesh government Friday cancelled allotment of 850 acres of land to IMG Bharata for setting up a sports academy and entertainment centre on the city's outskirts and announced a Central Bureau of Investigation (CBI) probe into the deal.
Reversing the decision taken by the previous Telugu Desam Party government, the state cabinet decided to bring an ordinance to cancel the memorandum of understanding (MoU) with the private firm.
IMG Bharata, a subsidiary of the US-based International Management Group (IMG), which specialises in sport-related activities and runs sports academies across the world, had entered into an MoU with the government in 2003.
Presided over by Chief Minister Y.S. Rajasekhara Reddy, the cabinet met here and felt that grave irregularities were committed in the deal. Briefing newsmen, Minister for Information and Public Relations Mohammed Ali Shabbir said prime land was allotted to IMG Bharata at a throwaway price.
The Telugu Desam government of N. Chandrababu Naidu had allotted 400 acres to IMG Bharata at Gachibowli for developing a sports academy on the lines of the existing academy in Florida.
Another 450 acres of land was allotted at Mamidipalli village to develop entertainment infrastructure.
Naidu had laid the foundation stone for the Rs.7 billion IMG Bharata Academy on Feb 11, 2004.
In April this year, the Andhra Pradesh High Court had given clean chit to Naidu. A Congress leader had filed a petition accusing the former chief minister of committing irregularities in land allotment.
The petitioner had pointed out that Naidu gave away land worth Rs.10 million per acre at Rs.50,000 per acre.