Illicit Farmland Sales Fuel Real Estate Boom in Hyderabad
With land prices soaring in Hyderabad, the illegal sale of government-assigned farmlands has become a rampant issue, particularly in Rangareddy, Medchal, and Vikarabad districts. Despite legal restrictions, thousands of acres are changing hands, fueling real estate development.
Illegal Land SalesReal Estate DevelopmentGovernmentassigned LandHyderabadLand PricesReal EstateAug 18, 2025
For assignees, the 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 common, with cases surfacing in various villages.
Take the case of Mankhal village in Maheshwaram mandal. Assignees signed an illegal agreement with a developer, giving away about two acres on a 33:67 development share. The Times of India has accessed a copy of the 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.
How developers use it Sources said 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 is government-assigned land?
Government-assigned land is land given by the government to landless poor for cultivation. It comes with strict conditions, such as not being sold or transferred, though it can pass to legal heirs.
Why are assignees selling their land illegally?
Assignees are selling their land illegally to make quick money. Developers are willing to buy this land at cheaper rates than the open market, making it a win-win situation for both.
What are the legal consequences of selling assigned land?
Under the Telangana Assigned Lands (Prohibition of Transfers) Act, 1977, the government has the power to resume such land in case of violations. This means the land can be taken back and used for public purposes.
How are developers using illegally purchased assigned land?
Developers often use illegally purchased assigned land for internal roads, open spaces, and access roads in layouts, avoiding the expense of buying regular land.
Which districts are most affected by this issue?
The districts most affected by the illegal sale of government-assigned land are Rangareddy, Medchal, and Vikarabad. Cases are particularly rampant in villages within these districts.
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