Post this, the Chandrababu Naidu government ordered an inquiry into the land distribution made to the Visakhapatnam-based Sarada Peetham. In its preliminary inquiry report, it has stated that 15 acres of land was allotted to the Peetham at ₹15 lakh by the previous YSR Congress government. Interestingly, land in the Bheemili area was valued at ₹15 crore per acre. The Naidu government has now taken the inquiry report for further study and action.
An investigation has established that the erstwhile YSR Congress government had donated as much as 15 acres of land worth hundreds of crores to Sarada Peetham for an ignominious sum of ₹15 lakh, which meant an enormous loss to the treasury. In the judgment, the allotment was termed as in contravention to the directives of the regulatory authorities. The Chandrababu Naidu government had canceled the land allotment. Consequently, the Andhra Pradesh government is withdrawing the 15 acres of land on the high seas near Bheemili, which it had gifted to the Sarada Peetham.