The nine-storied shopping mall and multiplex is proposed to come up in place of the Kalpana theatre in Kavadiguda.
Mr Rosaiah had initially directed the municipal administration and urban development department to collect impact fee from the builder for putting the 8,400 sq yds of land in residential category to commercial use.
Impact fee is levied on the permitted built up area which in this case will be more than 1.5 lakh sq ft.
Inquiries by this newspaper revealed that Mr Sudarshan had applied for permission to construct a mall and multiplex with six screens.
When MAUD, in consultation with the Greater Hyderabad Municipal Corporation, decided to collect impact fee, Mr Sudarshan contended that the theatre was in existence since 1964 and so the property should be considered commercial. But MAUD did not agree and instead decided to collect three times the impact fee since he was planning to build a multiplex. However, the Chief Minister reportedly disapproved levying three times the actual fee and asked MAUD to charge the actual impact fee collected for A-category roads. This brought down the amount from Rs 20 crore to Rs 7 crore.
Meanwhile, Mr Sudarshan approached the Chief Minister again with a plea that it was the government which erred in the issue for which he should not be punished. Mr Rosaiah then issued fresh orders waiving the entire impact fee.
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