The state government through an order had taken back the 5.61 acres of land at the old Gandhi Medical College at Basheerbagh in Hyderabad from the possession of GSG Constructions owned by the tainted city builder GS Gupta on Friday.

The land was given to the GSG Constructions on a 33 year lease period for developing an entertainment centre at a cost of Rs.137 Cr. The government has now cancelled the lease agreement as well as the entertainment centre-development agreement entered into with the group.

The government took the decision after coming to know the GSG firm had made the real estate giant DLF invest in the project.

The land was earlier purchased by the Tourism department from the medical and health department for Rs.63 Cr. The tourism department then gave it to the GSG Constructions for lease.

According to sources, government canceled the lease agreement after the Tourism Minister Vatti Vasanthkumar presided over a high level meeting and reviewed the situation. (J)