Ever since AP CM hints that he prefers to build the new capital city between Vijayawada-Guntur cities, the realty business in the surrounding areas triggered and there was sudden and steep rise in the land costs. Though, one may relate the increase to demand and supply formula, actually some realtors, politicians, big businessmen are behind this steep rise.

Those, realtors, politicians and businessmen, who already acquired hundreds of acres of lands are said to be artificially creating this hike by registering the sale agreements of a small piece of their lands with market price, which is four or five times to the government rate. Then, it will become the market price of the land. In case if the same land is sold, they will register them with market price but collects the market price in black. As a result government is losing huge revenue.

There is another intention also behind this idea. Since, government is planning to build the new capital between Vijayawada-Guntur cities and there is scarcity for the government lands, government has to acquire private lands from these realtors and politicians only. According to the new land Acquisition act, if government plans to acquire land, it has to pay highest market price of that piece of land. So, are these money hungry and greedy realtors and politicians are registering a small of piece of their vast lands with market prices. Though, Deputy CM KE Krishna Murthy warns them of taking severe action, still this practice is said to be continuing in the VGTM areas.