Andhra Pradesh Chief Minister N. Chandrababu Naidu announced that all tenders associated with the controversial Mumtaz Hotel project in Tirumala were being cancelled. Taking a firm stance on the matter, he stated, “No Tirumala Tirupati Devasthanams (TTD) land will be used for privatisation.”

Criticising the previous government’s approach to the project, Naidu remarked, “You’ve seen the last government when they gave permission for the construction of Mumtaz hotels, Devalok project, etc.” He further said, “Mumtaz hotels—they changed the name, but then we told them we can’t give them permissions for the same.”

The decision to revoke the tenders came after growing opposition to constructing a luxury resort near the sacred hills, with concerns about its impact on the site's sanctity. On February 12, sadhus and priests launched a hunger strike against the planned hotel near Alipiri Srivari Padalu, a revered location. Protesters argued that the project would compromise the spiritual purity of the Tirumala region and the Sri Venkateswara temple. The controversy dates before 2021, when the Andhra Pradesh government, led by Jagan Mohan Reddy, issued a Government Order (GO) under its 2020-2025 Tourism Policy; the order aimed to promote large-scale luxury tourism by offering incentives to developers. As part of this initiative, Mumtaz Hotels Limited, a subsidiary of The Oberoi Group, was granted 20 acres of land to build a high-end resort with 100 luxury villas, requiring an initial investment of ₹250 crore. Chief Minister Naidu later disclosed that The Oberoi Group had assured the government that only vegetarian food would be served at the hotel to respect the religious sentiments associated with the region.

However, the government remained steadfast in their job. “The Oberoi Hotels came forward saying they would only serve vegetarian food, but still we told them strongly that no private entities will be allowed in this sacred place. We have stated that no permission will be given to private individuals in this area.”

To calm the situation, Naidu offered an alternative solution: "We told them we’ll even give them an alternate land. TTD will sort it out with them.”

In 2024’s November, TTD Chairman BR Naidu enacted a resolution requesting the state government to cancel the land allotment. The board strongly felt that turning the sacred site into a commercial space would deeply offend the sentiments of the millions of devotees who visit the temple.

“That’s why, be it Vaishnavi Versatile with 10.32 acres, Mumtaz Hotel with 20 acres, and MRKR Construction Industries Private Limited with 5 acres—all these three, we are now cancelling the permissions. There should be no commercialisation adjacent to the Seven Hills,” Naidu declared.