World Bank had rejected Chandrababu Naidu government's request for funds to develop new capital of Amaravati. The world Bank team conducted a study on the AP government’s steps taken to acquire lands for construction of Amaravati and the measures initiated to the welfare of farmers who lost their lands in the acquirement.
According to reports, The team expressed strong reservations on the government's move to acquire lands by instigating farming community. The team also found that government prepared false report on socio, economic and environmental impact of the construction of new capital in farming lands.
The report mentioned 93 per cent of the funds given by World Bank is being utilised for land pooling. It also highlighted the observations made by farmers, social scientists and environmentalists on the impact of land acquisition to the livelihoods of farmers.
Food security, livelihoods and social development have been taken into serious consideration. The team took strong exception to the government's move to acquire lands through instigation.
The bank officials nailed the government for its failure in fulfilling the promises like fee reimbursement, waiver of loans and health insurance to the farmers who gave away their lands. Farmers were also cheated for not getting the plots as promised by Chandrababu government. Those who got the plots were less than the size the government promised.
Based on the report, officials said the World Bank decided not to release funds unless the government set the things rights