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The Telangana High Court has allowed the Hyderabad Metropolitan Development Authority (HMDA) to proceed with the e-auction of 4.19 acres of Budwel land in Rajendranagar, which had been set aside earlier this year. The division bench suspended the single-judge order that had favoured private claimants, directing the Rangareddy district collector to decide on ownership claims by mid-December. While HMDA can continue with the auction, it cannot declare the highest bidder until after December 31. The case has been scheduled for its next hearing in January 2026.
The Telangana High Court has given conditional approval for the Hyderabad Metropolitan Development Authority (HMDA) to conduct the e-auction of 4.19 acres of land at Budwel in Rajendranagar, after suspending a single-judge order that had cancelled the auction process. The bench of Justices Moushumi Bhattacharya and Gadi Praveen Kumar passed the order while hearing an appeal filed by the state government against the earlier ruling made in May 2025. Advertisement
The court stated that HMDA may proceed with the e-auction but must refrain from declaring the highest bidder until the Rangareddy district collector examines the ownership claims filed by private individuals. The collector has been instructed to complete this review by December 12 and furnish a written order with reasons by December 15. Only after December 31 can HMDA announce the top bidder, ensuring that due process is followed.
The bench noted that the authorities had already exceeded the time frame previously directed by the single judge, as no action was taken after issuing notices to the claimants in June 2025. The court directed officials to hear the private parties and decide their representations in a fair and timely manner.
Advocate General A. Sudharshan Reddy informed the court that the disputed 4.19-acre plot is part of a larger 281.61-acre tract located in a prime area of Hyderabad and is valued in hundreds of crores INR. He added that suspending the auction indefinitely would force the government to refund bidders, increasing financial pressure on the state.
Counsel representing the private claimants stated that they had appeared before the authorities after receiving notices in June, but their ownership petitions had not been addressed since then. The court acknowledged these submissions and stressed that the delay in decision-making had caused procedural lapses.
The matter has been adjourned to January 2026 for further hearing. The court's interim decision allows the government to continue with the auction process but maintains a safeguard against any premature conclusion until ownership disputes are resolved.
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