HYDERABAD: Land auctions in Telangana are increasingly becoming battlegrounds in court, with disputes arising just before or after the sale of valuable plots. From record bids in Raidurg to extensive legal disputes in Kokapet, government agencies are grappling with legal obstacles that threaten their revenue-generating efforts.
The Hyderabad Metropolitan Development Authority (HMDA) and the Telangana Industrial Infrastructure Corporation (TGIIC), responsible for managing these auctions, acknowledge that the challenges are intensifying.
The recent Raidurg auction, which saw TGIIC achieve an unprecedented ₹237 crore per acre, faced an immediate setback when the State Bank of India petitioned the high court and obtained a stay order. In a similar case, the Yamunanagar House Building Society and others have sought court intervention to suspend auctions in Hakimpet village, Banjara Hills, with the hearing yet to be scheduled.
Officials indicated that such challenges are not unprecedented. Back in 2006, the erstwhile Hyderabad Urban Development Authority auctioned 70 acres under the Golden Mile project in Kokapet, raising ₹703 crore, with some bids reaching ₹14.5 crore per acre.
Initially, bidders paid ₹435 crore, but legal disputes over ownership extended for years. “Some bidders even requested refunds, arguing the government held the auction amidst pending litigation. Nevertheless, the government prevailed in court, and registrations were finalized later,” a senior HMDA official recounted. The Supreme Court eventually issued a favorable ruling in 2017.
A significant conflict also arose even during unified Andhra Pradesh over approximately 1,654 acres in Manikonda, which had been allotted by the Andhra Pradesh Industrial Infrastructure Corporation (APIIC) to various firms in 2005, including around 100 acres to Lanco Hills.
After these allotments were made under the Y.S. Rajasekhara Reddy administration, the AP Waqf Board filed a lawsuit asserting that the land belonged to Dargah Hazrat Hussain Shah Vali. Reports indicate the high court ruled in favor of the AP Waqf Board in 2012. However, by 2022, the Supreme Court determined that the Manikonda Jagir land was state property.
During this prolonged litigation, property buyers in the area were left in a state of anxiety. The Waqf Board continues to pursue certain cases related to land in the Manikonda Jagir locality.
The Kokapet Neopolis layout, where the HMDA has sold over 200 acres in recent years, has also faced claims over plots ranging from 5 to 10 acres. While no court orders have been issued yet, officials remain vigilant. In Budvel, Rajendranagar mandal, claims on portions of a 100-acre parcel have already been dismissed by revenue and HMDA officials.
A similar pattern has emerged in the Medipally layout, where certain assignees have filed claims of ownership. As a result, the HMDA has excluded disputed plots from the auction process while continuing to sell unaffected land.
Officials indicated that many of these claims lack adequate documentation. “In some instances, such as in Kokapet, claimants assert ownership without even knowing the survey numbers or boundaries of the land they claim. While these cases present temporary challenges, they are unlikely to succeed in court,” noted a senior HMDA official.
Authorities emphasized that the government is enlisting senior legal counsel to rigorously contest these disputes, not only to protect sold land but also to preserve a crucial source of revenue. As litigation casts a shadow over nearly every major land auction, experts suggest that Telangana’s plans to exploit high-value land parcels are under constant legal scrutiny.
