Scale of the Crisis
A massive land scandal has surfaced in Rangareddy district, where officials estimate that around 10,000 acres out of 1.20 lakh acres of government-assigned agricultural land have illegally ended up in private hands. This represents a major breach of public trust involving lands originally meant for the landless poor.
How the Scam Works
The illegal transfer mechanism operates through a simple yet devastating process. Assignees, who received these lands from the government for cultivation, are now selling them to real estate developers despite strict legal prohibitions. Developers are interested in purchasing this land at lower rates than market prices, but this violates the law.
Affected Areas and Projects
The problem extends beyond Rangareddy to include Medchal and Vikarabad districts. Specific cases have surfaced in several mandals:
- Mankhal village: Assignees illegally agreed to give away two acres on a 33:67 development share
- Tukkuguda: A developer illegally acquired nearly 24 acres for a gated community
- Other affected areas: Kandukur, Yacharam, Abdullapurmet, and Maheshwaram mandals
Legal Framework and Violations
Government-assigned land comes with strict conditions under the Telangana Assigned Lands (Prohibition of Transfers) Act, 1977. These lands cannot be sold or transferred, though they can pass to legal heirs. The government has the power to resume such land in case of violations.
Official Response
HYDRAA Commissioner A.V. Ranganath has issued warnings to citizens against buying plots in unauthorised layouts sold under the guise of farm plots. The agency received complaints about unauthorised sales on 1.02 acres in Lakshmiguda Village in February 2025.
Meanwhile, RERA has imposed fines of Rs 25.8 lakh on realty firms for illegal farm plot sales, indicating regulatory action is underway.
Court Interventions
The Telangana High Court has reserved orders on multiple petitions concerning the alleged illegal sale of Bhoodan lands in Nagaram village, Maheshwaram mandal. Justice K Lakshman questioned the effectiveness of a Commission of Inquiry, highlighting systemic challenges in addressing such violations.
Impact on Real Estate Development
Developers often use illegally purchased assigned land for internal roads, open spaces, and access roads in layouts. This practice allows them to avoid expenses associated with purchasing regular land, thereby reducing project costs while compromising legal compliance.