When Raghavendra Rao started construction of the mall and the theatre in 2006, the Information and Public Relations department which gave the land, issued notice to him to stop the construction. Raghavendra Rao challenged this in the high court. The high court however rejected his contention. After this, the Hyderabad district collector gave a notice to Raghavendra Rao and in his reply, Raghavendra Rao assured that he would not construct any buildings in the place. Still he went ahead and constructed the mall and the theatre.
Taking serious note of it, the district collector recommended to the Information and Public relations department, that the land be taken back. The department in turn, sent the report to the government, recommending that the land be taken back. This would mean a major problem for Darsakendra as he had constructed the mall and the theatre, borrowing crores of rupees from financial institutions.