Amid ongoing confusion over regulations for construction near lakes and water bodies, the HMDA and GHMC have paused approvals for 400-500 building and layout applications. While no official order halts permissions, uncertainties surrounding Full Tank Levels (FTL) and buffer zones have prompted delays. Real estate developers fear these setbacks, especially during the key October-December buying season, may impact the market. The Hyderabad River Authority and Lake Area Administration (HYDRAA) has tightened oversight, leading to suspensions and legal action against officials involved in prior irregular approvals.
In light of ongoing regulatory uncertainties regarding construction permissions near lakes and other water bodies, the Hyderabad Metropolitan Development Authority (HMDA) and Greater Hyderabad Municipal Corporation (GHMC) have decided to suspend the issuance of building and layout approvals in these areas. This action comes amid concerns over the establishment of Full Tank Levels (FTL) and buffer zones, which are crucial for ensuring environmental protection and compliance with existing laws.
Official sources and real estate organisations indicate that approximately 400 to 500 applications have been put on hold by the two agencies. Although no formal government order has been issued to halt permissions, HMDA and GHMC sources confirmed they are not processing new applications due to uncertainties surrounding the FTL and buffer zones of various water bodies.
A senior HMDA official told The Times of India (TOI) that out of approximately 580 water bodies within the Outer Ring Road, final notifications establishing FTL and buffer zones are yet to be completed for 430 of them. Currently, FTL and buffer zones have been finalised for only 130 lakes. The official emphasised that there is no urgency to grant permissions, as doing so could lead to legal complications later. The process of completing final notifications for all lakes is expected to take several months.
An HMDA official explained that once a final notification fixing the FTL and buffer zones of a lake is issued, it becomes definitive and cannot be changed. No permissions can be granted until this notification is established. In the Hyderabad Metropolitan Region, under HMDA's jurisdiction, preliminary notifications have been issued for 2,560 lakes out of a total of 3,500, but final notifications have only been completed for approximately 230 lakes.
Meanwhile, an office-bearer from the Confederation of Real Estate Developers' Associations of India (CREDAI), Hyderabad, noted that hundreds of permissions have been stalled within HMDA and GHMC limits over the past few months, including some for properties not located near water bodies. They expressed concern that these delays, especially during the festive season from October to December-when property purchases typically increase-could negatively impact the real estate market.
Officials explained that prior to the activation of the Hyderabad River Authority and Lake Area Administration (HYDRAA) three months ago, the HMDA and GHMC granted building and layout permissions based on no objection certificates (NOCs) from the irrigation and revenue departments. In some cases, district collectors issued the NOCs following joint inspections.
In response to the situation, the state government has suspended irrigation and revenue officials, as well as a municipal commissioner, and filed cases against them for issuing faulty building permissions within the FTL and buffer zones of water bodies. These actions were prompted by recommendations from HYDRAA, particularly in cases where incorrect survey numbers were utilised.
According to officials from the municipal administration department, there is no blanket ban on granting permissions within HMDA or GHMC, including areas near water bodies. However, they stressed the need for greater caution when approving building and layout permissions.
Although there is no formal ban on permissions, HMDA and GHMC remain cautious about approving projects near water bodies until clear guidelines are established, prolonging uncertainty for real estate developers.
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