Hyderabad Metropolitan Development Authority now free to auction & allot prized Kokapet land

HYDERABAD: After several twists and turns in the legal battle over 630 acre prime land in Kokapet in Rajendranagar mandal, Hyderabad Metropolitan Development Authority (HMDA) was finally vindicated. Supreme Court on Wednesday dismissed the appeal by some claimants over the land.

This means, the authority is free to either allot or auction the land. The current market value of the land is estimated between Rs 6,000 crore and Rs 10,000 crore. Of total land, the erstwhile Hyderabad Urban Development Authority (HUDA) had already auctioned 166 acres land in 2006.

HMDA sources said the SC decision was a big relief as the authority has been facing financial crisis for the past few years and was under pressure from private bidders for a refund as the case was dragging in court. The state government allocated 630 acres in Kokapet to Huda for raising money as part of resource mobilization in 2005. The first auction was conducted in 2006 under Golden Mile project that fetched the authority Rs 700 crore for 15 plots in 70-acre layout.

The land has advantage as it abuts ORR and is close to the financial district, triggering interest among corporate houses and realtors. Later, another 30 acres was auctioned and the government mopped up Rs 14.5 crore per acre, the highest bid for a five-acre parcel. The state government also allocated 50 acres at a nominal price to some companies, but three companies backed out from the agreement. Some withdrew and did not pay the full amount as there was a title dispute over land.

"Huda was to get Rs 1,680 crore for166 acres, but some bidders paid Rs 678 crore as advance, and did not pay the balance as land was caught in legal tangle.Some also moved court, seeking refund of advance along with interest," HMDA metropolitan commissioner T Chi ranjeevulu told TOI. Now, HMDA has two options. First, it can refund advance amount to earlier bidders along with interest and conduct fresh auctions. Second, it can collect the balance from bidders and conduct auctions for 430 acres."The state government will take a decision. We estimated the land value at about Rs 10-15 crore per acre," the Chiranjeevulu said.

Revenue department officials said land dispute began two decades ago when heirs of Nusrat Jung Bahadur approached state government and then moved court, claiming ownership.

KSB Ali, who claims to be an assignee of the heirs, on behalf of 203 others, approached the SC in 2013 after HMDA got a favourable HC order on the land in 2012. HMDA officials said his special leave petition was dismissed by SC.