Officials from the Andhra Pradesh government said rampant corruption besides flouting of various socio-economic norms under the previous government, led by former chief minister n. chandrababu naidu, were the reasons behind the agency’s move. The then TDP government had invited tenders for infrastructure development even before the World Bank loan details were finalized
A World Bank team that toured the proposed region marked for development from 13-17 September 2017, found irregularities in the tender process and also that it favored contractors. According to the officials, the team found numerous irregularities in land pooling, utilization of verdant agriculture land for other purposes, serious environmental violations and in the plan of the new proposed capital as it affected the course of the krishna River, among other issues.