After Kancha Gachibowli, government discreetly mortgages 817 acres of prime HMDA land

The Telangana government has mortgaged 817.32 acres of HMDA land across Hyderabad to secure borrowing of Rs 12,818 crore. BRS spokesperson Manne Krishank has questioned the valuations, security arrangements and use of proceeds, demanding disclosure of the transaction documents and terms.

Hyderabad: Notwithstanding its national-level embarrassment over its failed attempt to mortgage the Kancha Gachibowli lands, the Telangana government has mortgaged 817.32 acres of prime government land across different locations around Hyderabad to secure a fresh loan of Rs 12,818 crore. While the land valuation was just 10 per cent of its actual market value, the government chose to mortgage double the land for a lower valuation than that of Kancha Gachibowli.

The valuation and terms emerged through transaction documents rather than a public explanation. The arrangement raises questions over the valuation of public assets, the choice of land parcels and the use of the funds raised.

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A debenture trustee agreement dated February 10, 2026, lists 10 parcels in Izzatnagar, Mokila, Miyapur, Isnapur, Injapur, Chilkur, Patancheru, Gajularamaram and Jawaharnagar, belonging to the Hyderabad Metropolitan Development Authority (HMDA). Their combined extent is 817.32 acres. The document records an aggregate fair market value of Rs 12,818.63 crore as of March 20, 2026. It says only the parcels required to maintain security cover of at least 1.25 times the secured obligations would be used as security.

The choice of multiple parcels across different locations, rather than a single tract, raises questions about how the properties were selected and assessed. The agreement does not explain the rationale for selecting these particular lands or provide a parcel-wise valuation breakdown.

Revealing the government’s discreet actions, BRS spokesperson Manne Krishank alleged that the land was valued at about Rs 15 crore an acre, against a market value of around Rs 150 crore an acre. However, the agreement records a total fair market value of Rs 12,818.63 crore. The valuation methodology, individual assessments and the precise value adopted for securing the borrowing have so far remained undisclosed.

The transaction also involves Mumbai-based Beacon Trusteeship as debenture trustee. The SEBI-registered trustee was appointed to execute the transaction involving the Kancha Gachibowli land controversy, in which the Revanth Reddy government attempted to mortgage 400 acres of prime land for Rs 16,000 crore, allegedly far below its market value. The company’s role in the latest arrangement, along with the loan terms and the exact parcels ultimately placed as security, warrants clarification.

With University of Hyderabad students protesting against the proposed use of university land and the Supreme Court finding fault with the actions of the State government, including Chief Minister A Revanth Reddy, the government was prompted to step back. The latest transaction again places the handling of valuable public land under scrutiny.

Questions also surround the proceeds. Krishank has cited HMDA bank account details showing a balance of about Rs 275 crore as of March 31, 2026, and deposits of around Rs 10,000 crore by June 30. He has linked the increase to the land-backed borrowing and sought an explanation of how the money was used.

Krishank also questioned activity on land at Jawaharnagar, alleging that a parcel allotted to Genpact in 2008 was being used by KLSR Infra to place containers. This land was also part of the multiple parcels mortgaged by the government, he alleged.

The government needs to publish the valuation reports, loan terms, security details and a clear account of the proceeds. Without these disclosures, the public cannot determine whether the State received borrowing on terms commensurate with the value of the land placed at risk.

Krishank demanded a response from the Chief Minister and his family on the land valuations, mortgage arrangements and KLSR Infra’s role. “We are being intimidated with arrests and even threatened with physical attacks by the Congress leaders in public for questioning the government. But the BRS would continue its efforts to protect the State’s assets,” he asserted.