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HYDRA Demolitions and Stalled Projects: A Crisis Brewing in Hyderabad’s Real Estate?

Recently, HMDA issued a directive requiring every construction site to prominently display a notice board containing details such as revenue, irrigation, and RERA approvals. The aim was to facilitate easier inspections for officials

Hyderabad: The construction sector in Greater Hyderabad is facing a crisis. On one side, the “Hydra” demolition drives are targeting unauthorized constructions, while on the other, stalled projects are leaving buyers in a state of uncertainty. Amidst this turmoil, the Hyderabad Metropolitan Development Authority (HMDA) has introduced a novel directive to ensure transparency in ongoing construction projects.

The directive mandates developers to display detailed project information at construction sites. This includes land surveys, ownership details, builder profiles, permissions, and RERA approvals. However, despite the announcement, the implementation of this policy remains conspicuously absent across HMDA’s jurisdiction.

Key Decisions and Implementation Challenges

In response to the issues stemming from “Hydra” demolitions and problems with NOCs, HMDA has taken several critical decisions. Previously, obtaining construction permits required mandatory No Objection Certificates (NOCs) from the Revenue and Irrigation departments. Without approvals from these authorities, moving to Level 2 of the permission process was impossible.

Recently, HMDA issued a directive requiring every construction site to prominently display a notice board containing details such as revenue, irrigation, and RERA approvals. The aim was to facilitate easier inspections for officials. Unfortunately, this practice has not been adopted anywhere within HMDA’s scope. Developers and builders continue to flout these instructions, undermining the intended transparency and accountability.

Lack of Oversight

While HMDA has introduced multiple policies, the lack of effective monitoring and enforcement has hindered their implementation. The coordination gap between HMDA, the Irrigation Department, and the Revenue Department has become evident, particularly after the “Hydra” demolitions.

One of the primary issues is linked to NOCs issued by the Irrigation Department. HMDA granted permissions based on these documents without conducting thorough on-ground inspections. Later, “Hydra” authorities demolished several constructions, citing encroachments on lake lands. This oversight has exposed a critical flaw in HMDA’s verification process, leaving buyers and investors to bear the brunt of these lapses.

Impact on Buyers and Industry

These developments have shaken confidence in the construction industry. Buyers are hesitant to invest, fearing future demolitions or legal complications. Developers, meanwhile, face increasing scrutiny, project delays, and financial losses.

Way Forward

To restore trust and ensure smoother operations, HMDA must prioritize the enforcement of its policies. Regular inspections, stringent penalties for non-compliance, and better coordination among departments are essential. Transparent communication with stakeholders, especially buyers, can also mitigate concerns and revive faith in the city’s real estate sector.

The situation highlights the urgent need for systematic reforms to address the ongoing challenges in Hyderabad’s construction landscape. Without immediate intervention, the sector risks further destabilization.

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