No. 1 Property Verification Services & Property Management Services

Government may resume 560 properties


Monthly Archives: December 2015

Government may resume 560 properties

The issue of extending lease of the 560 properties, which are between 100 square yards and 500 square yards, came to light during a meeting Hyderabad collector Rahul Bojja had with revenue officials after he took charge recently. He asked the revenue officials to submit a report on the status of these properties.According to the Hyderabad district revenue records, there are 2,300 leased properties in three mandals of Secendrabad, Musheerabad and Marredpally in of the Secendrabad revenue division. The Britishers had allotted these properties, originally belonging to the Nizam, to private individuals. After Independence, the Britishers, while quitting India, allotted these properties to private persons on lease basis and it was recorded by the military estate officer (MEO) in the revenue records. Subsequently, the records were transferred to the state government and maintained by the revenue department. As per rules and regulations, the lease agreements have to be renewed every 30 years and could be extended to 90 years.

“Till 1993, the lease agreements were renewed based on nominal rates. In 1994, the Andhra Pradesh government issued a GO Ms No 816 and fixed (lease) market values based on the location. Responding to the GO, nearly 1,740 leaseholders came forward and extended their lease agreement for another 30 years (2024 year). However, 560 property owners failed to get it renewed,” sources in the Hyderabad collectorate told STOI. In fact, the then government had extended the deadline till 2005, but these leaseholders did not utilize the opportunity. The revenue department used to extend/renew lease agreement based on lease deed/sale of the property deed, link documents related to the property concerned and payment of market value, he said.

Most of the lessees were not staying at the properties, while nearly 80% of the original allottees had sold them to private persons. Only in few properties in Secendrabad, Marredpally and Musheerabad, the original lessees are still in occupation of their land. The Hyderabad collector has asked the revenue officials to submit the report and a decision would be taken soon whether to give further extension or resume these properties.

Land conversion clause High Court jolt to Hyderabad realtors

In a judgment that is seen as a setback to the realty sector in Hyderabad, the high court on 28th August made it clear that those who wish to convert agricultural land into non-agricultural one have to pay a conversion fee and obtain clearance from the respective revenue divisional officer (RDO) under the AP Agricultural Land (Conversion for non-agricultural purposes) Act, 2006.

Several developers and land owners had approached the high court challenging the applicability of the 2006 Act on grounds that they are already paying fees for conversion, development charges, apart from impact fee permission fee to develop land. This additional requirement for obtaining permissions and fee would burden them further.
Earlier, a single judge upheld the provisions of the 2006 Act, but carved out an exception for those who had already converted their land into a non-agricultural one prior to 2006. Aggrieved at this order, the developers preferred an appeal before the division bench comprising acting Chief Justice Dilip B Bhosale and Justice SV Bhatt. However, this bench too agreed with the single judge, dismissed all the appeals on 28th August and upheld the provisions of the 2006 Act. The bench said that just because development fee is paid to the local body, the developers cannot say they need not take permission for conversion of agricultural land for non-agricultural purposes like construction of buildings.

Law

Now the urban development authorities, or the local authorities, as the case may be, can insist on submission of clearance/permission under the 2006 Act as a condition for releasing of layouts. The permission will be granted after payment of fee to the concerned RDO as per schedule. MV Durga Prasad, the counsel for one of the developers, said they would challenge this order in Supreme Court. Pointing out that land value is high in and around Hyderabad; he said a steep five to nine per cent of the value has to be paid to the competent authority for obtaining permission under this 2006 Act.