TDR certificate black market frenzy grips Hyderabad; Small builders cry foul

Hyderabad's real estate sector is in turmoil as the non-availability of TDR certificates fuels a black market and stifles small builders. Allegations of political interference and hoarding have driven certificate premiums to record highs. With GHMC halting new issuances and government directives freezing pending applications, the construction industry faces mounting debt and uncertainty.

Hyderabad: Non availability of Transfer of Development Rights (TDR) certificates has sparked a big controversy in Hyderabad’s real estate sector. Certificates meant to be accessible to all sections of society are being deliberately blocked by certain influential individuals in the government, creating an artificial scarcity that has fueled a rampant black market.

A close aide of a top leader with links to a prominent builder has allegedly been orchestrating this scarcity. By cornering crores worth of TDRs, they have transformed them into a lucrative source of substantial profit. What was once available at a modest 22% premium during the previous regime has now skyrocketed to 55-60% per certificate.

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The Greater Hyderabad Municipal Corporation (GHMC) has halted the issuance of new TDRs within its limits, and even the ones occasionally issued are landing in the hands of the influential players. For small-scale builders, securing these certificates has become a major hurdle. In just 22 months under Congress rule, the construction industry has been dealt a blow. With real estate prices plummeting and sales failing to meet expectations, cash-strapped builders are drowning in debt.

Fresh government directives have explicitly barred new TDR certificates, leaving GHMC’s Planning Department in limbo, refusing to process pending applications as previously done. Consequently, TDRs worth hundreds of crores are frozen, impacting the construction sector.

GHMC has so far issued TDR certificates for 37.32 lakh square yards. Of these, 20 lakh square yards have been utilized, leaving 15.36 lakh square yards in circulation. Over the past few months, however, some officials have allegedly been stockpiling and blocking these to engineer a shortage.

With an eye on future needs, insiders are hoarding them in bulk and releasing them at inflated rates to fuel fresh deals. This scarcity allows them to dictate prices on existing stock, pricing out ordinary buyers.

TDR system—introduced as an alternative to cash compensation for land and asset acquisitions in projects like NALA expansion, SRDP, SSE, and road widenings—has been suspended at GHMC.

The officials concerned showed little interest in reviving the scheme, with sporadic issuances of one or two certificates allegedly reserved for government heavyweights, builders claim. As a result even those displaced by road expansions are finding it increasingly difficult to claim their dues.