This legendary actor bought land for Rs 1.5 lakh to build studio, it is now worth Rs 650 crore, faced controversy when..

Real estate is not cheap in any part of India. And when it comes to the bigger cities and metros, this holds true even more. Large pieces of land don’t come cheap, particularly when they are meant for commercial purposes. So when an actor-turned-filmmaker managed to secure a vast stretch of land in Hyderabad for a very cheap sum, eyebrows were raised. This is the story of howa studio worth Rs 1.5 lakh became a Rs 700-crore behemoth.

The acting legend who bought studio land for Rs 7500 per acre

In 1976, the then Andhra Pradesh government allotted 22 acres of land to superstar A Nageshwara Rao where he wanted to build a studio. As per a Deccan Herald report, the government allotted the land, situated in the posh Banajara Hills locality, for the promotion of the Telugu film industry in Hyderabad. Nageshwara Rao managed to secure it at a nominal price ranging from Rs 7,500 to Rs 8,000 per acre, which meant the entire land did not cost him much over Rs 1.5-1.8 lakh. On that land, Rao built the Annapurna Studios, now a major film production company in Telugu cinema.

The cost of Annapurna Studio’s land now

In 2015, after the bifurcation of Andhra and Telangana, the state government tried to get part of the studio land back. A Deccan Chronicle report noted that the price of the land at that time was around Rs 30 crore per acre, meaning the entire stretch of land can be worth over Rs 600-650 crore, a monumental sum.

The controversy around Annapurna Studios

In 2015, when the Telangana government decided to acquire land from the Annapurna Studios for a development project, the studio management reportedly refused to comply initially. Reports suggested that they originally asked for compensation which caused controversy as many pointed out that the land had been allotted in 76 at a nominal price. In the end, the management relented and a piece of land was acquired by the government for a road-widening project.

Annapurna Studios’ ownership and major films

After A Nageswara Rao’s death in 2014, his son and actor Akkineni Nagarjuna owned the studio along with the rest of his family. In 2018, it was taken over by Anil Ambani's Reliance Over the years, the company has produced dozens of films, including several hits like Shiva, Prema Katha, Mass, Rajanna, and Manam, as well as the web series Loser and The Baker and The Beauty.