HMDA ignores crores in rent arrears around Hussainsagar

HYDERABAD: Despite outstanding rents worth several crores, the Hyderabad Metropolitan Development Authority (HMDA) is allegedly showing little urgency in recovering dues. Officials have issued notices to defaulters but have not followed up with concrete action, according to sources.

HMDA earlier announced that it would invoke the Revenue Recovery Act to recover pending dues, but there has been no progress in that direction. Developers blocklisted by the authority are reportedly trying to secure new contracts under different names.

Rent defaults across prime lakeside zones

Under HMDA’s Buddha Purnima Project, commercial establishments operate across Tank Bund, NTR Marg, Necklace Road and Sanjeevaiah Park. These properties, leased to private operators, are expected to fetch an annual revenue of ₹25–30 crore.

However, several leaseholders have defaulted, causing substantial losses to the state exchequer. In one case, a restaurant in Lumbini Park reportedly owed ₹1.5 crore and later approached court without clearing payments. When the verdict went against it, HMDA took over the property.

Planned revenue potential remains untapped

Officials say that with proper planning and enforcement, areas around the busy Hussainsagar Lake could generate crores in additional revenue. But inaction on rental arrears continues. Many operators have exceeded their lease terms without paying dues, pushing arrears into crores.

Major defaulters (as per official data)

• Amogha Restaurant: ₹1.50 crore

• IMAX Parking Area: ₹45 lakh

• NTR Garden Cloakroom: ₹16 lakh

• NTR Garden Parking Area: ₹21 lakh

• Lumbini Park Cloakroom: ₹11 lakh

• Sanjeevaiah Park Face Activity: ₹1.61 lakh