Nizam's descendent blocks development of land auctioned by HUDA

06 October 2006

HUDA struggles with a legal tussle

Two months ago it was reported that a ground-breaking auction by the Hyderabad Urban Development Authority raked in over Rs700 crore for 65 acres of land. Today, 15 companies, which spent more than Rs10 crore an acre for this property, cannot take possession of it as HUDA struggles with a legal tussle, reports CNBC-TV18.

Kokrapet village is about 20 kilometres outside Hyderabad. When HUDA auctioned this land it got three times the original price. It justified that by promising its buyers world-class infrastructure and clean ownership titles. Now, two months later, the land has no infrastructure and its ownership is in dispute.

Jayesh Ranjan, vice chairman, HUDA, says, "It is unfortunate that a private individual has filed a claim before the honourable High Court of AP that this land was given to his ancestors by the Nizam and he is therefore the owner of the land."

The High Court has ordered a status quo on the land until the matter is settled. That means HUDA cannot start work on internal infrastructure here and the road that will connect it to the city. That also means HUDA cannot keep its promise to have the infrastructure facilities ready in six months.