Hyderabad's Illegal Land Deals: Assigned Farmlands Becoming Prime Real Estate
With land prices soaring around Hyderabad, the illegal sale of government-assigned lands has become a rampant issue, particularly in Rangareddy, Medchal, and Vikarabad districts. These lands, meant for agricultural use, are being sold to real estate developers for layouts and gated communities, leading to significant legal and environmental concerns.
Illegal Land DealsReal EstateHyderabadAssigned LandsAgricultural LandReal Estate NewsAug 18, 2025
For assignees, these deals bring quick money, while developers get land at cheaper rates than the open market. It's a win-win for both sides, admitted officials. Blatant violations are becoming increasingly common. Take the case of Mankhal village in Maheshwaram mandal, where assignees signed an illegal agreement with a developer, giving away about two acres on a 33:67 development share. The Times of India (TOI) has accessed a copy of this agreement. In Tukkuguda, a developer illegally acquired nearly 24 acres of assigned land to build a gated community. Similar cases are surfacing in Kandukur, Yacharam, Abdullapurmet, and Maheshwaram mandals.
Officials estimate that of the 1.20 lakh acres of assigned land in Rangareddy district, about 10,000 acres have slipped into private hands illegally. After land acquisitions for various public purposes, around 75,000 acres of assigned land remains. Rangareddy district collector C Narayan Reddy said assigned land is being resumed wherever violations are detected. 'In Tukkuguda, 24 acres in five parcels have been taken back and will be used for public purposes,' he said.
Chevella revenue divisional officer K Chandrakala said that notices were served to farmers in Peddavidu, Maddur, and Solipet villages for violations, while in Moinabad and Shankarpally, nearly 100 acres are under resumption. In Medchal Malkajgiri district, the practice continues unchecked in areas like Ghatkesar and Shamirpet, sources say. Developers often use illegally purchased assigned land for internal roads, open spaces, and access roads in layouts, avoiding the expense of buying regular land.
In some cases, assignees sell the plots outright; in others, they enter into development agreements with builders. Assigned land was originally given by the government to landless poor for cultivation, with strict conditions: it cannot be sold or transferred, though it can pass to legal heirs. Under the Telangana Assigned Lands (Prohibition of Transfers) Act, 1977, the government has powers to resume such land in case of violations.
Frequently Asked Questions
What are assigned lands?
Assigned lands are government-allocated plots given to landless poor for cultivation. These lands are strictly meant for agricultural use and cannot be sold or transferred.
Why are developers interested in assigned lands?
Developers are interested in assigned lands because they can acquire them at cheaper rates compared to the open market, making it cost-effective for building layouts, gated communities, and other real estate projects.
What is the legal status of assigned lands?
Assigned lands are legally non-transferable and are meant for agricultural use. Under the Telangana Assigned Lands (Prohibition of Transfers) Act, 1977, the government has the power to resume such lands in case of violations.
What are the consequences of illegal land deals?
The consequences of illegal land deals include legal action against both assignees and developers, potential resumption of the land by the government, and environmental degradation due to improper land use.
How is the government addressing this issue?
The government is taking steps to resume illegally transferred lands and is serving notices to violators. Efforts are being made to use these lands for public purposes and to enforce the law strictly.
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