Polepally SEZ is established by Andhra Pradesh Industrial Infrastructure Corporation (APIIC). It is one among many of the SEZ established by APIIC. It is situated at Polepally village, about 90 km from Hyderabad. Now it is in newly formed Telengana state. For the SEZ, land acquisition of about 1000 acre was notified in 2001. Original plans that year were to design as a “Green Industrial Park”. In 2005, the formulation "Special Economic Zone" was established and the land was allocated to many pharmaceutical firms engaged in the bulk manufacture of pharmaceutical products  Before the land acquired for the SEZ, the residents of Polepally village and other neighboring areas used to cultivate on that land. The farming was the only means of livelihood of the local villager. However, with the establishment of the SEZ people have lost their land. During procurement of land, government had issued rehabilitation cards to the land losers for jobs in 2007. However, no promises has been fulfilled and the land losers are running pillars to posts and requesting the authorities holding their cards to secure employment.
 According to an estimate, after the land was acquired, over 41 people have died since the land acquisition process began in 2003 due to trauma and demoralisation. However, government officials dismissed these deaths as ‘natural causes’ .
Since the project has started, evicted people lodged various forms of peaceful protest. However, they were unable to stop the process of evictions during the land acquisition in 2004 – 2005. They were also unable to get better compensation and rehabilitation packages. A new form of protest was organized in 2008 when Polepally SEZ Vyathireka Aikya Sanghatana decided to contest State Assembly elections. They altogether put 13 candidates in the same constituency to record a protest against SEZ policy .