The Hyderabad Metropolitan Development Authority (HMDA) and Greater Hyderabad Municipal Corporation (GHMC) have now halted the granting of permissions for buildings and layouts near lakes and other water bodies. This development follows the recent HYDRAA demolition drive and banks instructing their loan sanctioning teams to be more vigilant when approving the loans.

According to media reports, the decision to halt new permissions has been made due to the lack of clarity around construction norms for over 400 water bodies. To avoid confusion, the permission process has been suspended until a final notification is issued by the authorities.

Earlier the banks instructed their loan sanctioning teams to be more vigilant while approving home loans. It applied to properties whose documents GHMC, HMDA and Real Estate Regulatory Authority (RERA) had already approved.

The bank authorities also asked their officials to conduct field visits for loans on properties, especially near the water bodies and to strictly consider the proposed construction plans, forbidding the regular 10 percent deviation.

Even though there is still no official guideline from the banks on said loan approvals, bank officials claimed that this move will streamline the home loan process and make it more structured. In addition, the bank authorities are facing difficulty retrieving the remaining loan amount for properties razed during the HYDRAA demolition Drive.

The chaos surrounding properties near water bodies began when the HYDRAA demolition drive razed numerous outbuildings and illegal structures. This drive resulted in the recovery of acres of lands.

The first drive was carried out on September 22, 2024, in Nalla Cheruvu in Kukatpally, Kistareddypet and Patelguda in Ameenpur municipality of Sangareddy district. During the drive, HYDRAA tore down 16 illegal outbuildings in Kukatpally, three reinforced cement concrete (RCC) structures in Kistareddypet and 25 RCC structures in Patelguda.

The second drive was carried out on September 23, 2024 against a sports academy in Kavuri Hills, Madhapur region. The drive took place after the Kavuri Hills Resident Welfare Association (RWA) approached the High Court for the State of Telangana against the sports academy that constructed illegal structures.

Later, the judge ordered the removal of the encroachments, leading HYDRAA to carry out the demolition drive. On the other hand, the sports academy claimed that the Kavuri Hills RWA leased the land to them for 25 years and expressed dissatisfaction with the demolition of the structures before the lease period expired.

While the HYDRAA demolition drive led to the recovery of four acres in Kukatpally, one acre in Kistareddypet and three acres in Patelguda, the action against the sports academy resulted in the reclaiming 2,000 square yards of land for park development, which was later given to the circle officials of the GHMC for park’s development.